CNBM (03323) issues profit warning, expecting shareholder's net loss of approximately 2.3 billion to 4 billion yuan in 2025, turning from profit to loss year-on-year.

CNBM (03323) announced that the expected unaudited equity attributable loss of the Group for the twelve months ending December 31, 2025 is estimated to be approximately RMB 2.3 billion to RMB 4 billion, while the unaudited equity attributable profit for the twelve months ending December 31, 2024 was approximately RMB 2.387 billion. The decrease in the above-mentioned forecast is mainly due to impairment provisions for properties, factory buildings, and equipment, as well as an increase in impairment provisions for goodwill, driven by a decrease in sales volume of the Group's main product, cement. However, the decrease in sales costs for cement and concrete, an increase in the sales price of glass fiber with decreased costs, an increase in sales volume of wind turbine blades and coatings, and an increase in profit from equity-accounted investees partially offset the decrease. It is expected that the increase in impairment provisions will involve the write-down of properties, factory buildings, equipment, and goodwill related to the production lines that have been phased out after capacity replacement for certain cement clinker production lines. The Group has engaged an assessment agency to conduct impairment tests, and is currently undertaking relevant work. Based on the preliminary estimates of the assessment agency, it is expected that the impairment provisions for assets that need to be recognized for the year ending December 31, 2025 will be approximately RMB 6 billion to RMB 8.3 billion.