HK Stock Market Move | NAN NAN RES (01229) fell by nearly 4%, and is expected to change from profit to loss in the mid-term to not more than 100 million Hong Kong dollars.

NAN NAN RES (01229) fell by nearly 4% in the afternoon, dropping by 3.92% to HK$0.245 as of the time of writing, with a turnover of HK$146,800. In terms of news, NAN NAN RES issued a profit warning during the afternoon, with the group expecting to achieve a surplus of approximately HK$47.1 million for the 6 months ending September 30, 2024, turning into a loss of no more than HK$10 million for the 6 months ending September 30, 2025. This is mainly due to the fair value loss from the HK$200 million zero coupon convertible bonds issued in 2008, which will mature on March 13, 2026, being designated as a financial liability accounted for at fair value and recognized in the profit and loss at approximately HK$31.7 million in mid-2025. Other factors contributing to the net loss include: foreign exchange losses, as opposed to foreign exchange gains in mid-2024, and a decrease in gross profit, primarily due to an increase in sales costs in the coal mining business and a decrease in average unit selling price.