NAN NAN RES (01229) issued a profit warning, expecting a mid-term loss of no more than HK$10 million, turning from profit to loss compared to the same period last year.

NAN NAN RES (01229) announces that the Group is expected to achieve a surplus of approximately 47.1 million Hong Kong dollars for the 6-month period ending on September 30, 2024 (mid-2024), which will turn into a loss of no more than 10 million Hong Kong dollars for the 6-month period ending on September 30, 2025 (mid-2025). This loss is mainly due to the fair value change loss of the HK$200 million zero-coupon convertible bonds issued by the Company in 2008 (due on March 13, 2026), which have been designated as financial liabilities at fair value through profit or loss in the mid-2025 period, with an amount of approximately 31.7 million Hong Kong dollars. Other factors contributing to the net impact include: net exchange loss, which was a net exchange gain in mid-2024, and a decrease in gross profit mainly due to the increase in sales costs and decrease in average unit selling price in the coal mining business.