HK Stock Market Move | After issuing a profit warning, CNBM (03323) fell by more than 10%. It is expected that shareholders will incur a maximum loss of approximately 4 billion yuan by 2025.

After issuing a profit warning, CNBM (03323) fell more than 10%, dropping 9.96% as of press time, closing at HK$5.1 with a turnover of HK$273.18 million. On the news front, on February 2nd, CNBM announced that the unaudited attributable loss to equity holders of the Group for the twelve months ended December 31, 2025 is expected to be between RMB 2.3 billion and RMB 4 billion, while the unaudited attributable profit to equity holders for the twelve months ended December 31, 2024 was approximately RMB 2.387 billion. The expected decrease is mainly due to impairment provisions for properties, plants, and equipment, as well as an increase in impairment provisions for goodwill, attributable to a decrease in sales volume of the main product cement. However, the decrease in the cost of sales of cement and ready-mixed concrete, the increase in selling prices of glass fibers, the increase in sales volume of wind turbine blades and coatings, and the increase in profits from associated companies offset the decline. It is expected that the increase in impairment provisions will involve impairment of properties, plants, and equipment and goodwill corresponding to the production lines that have been withdrawn after capacity replacement of some cement clinker production lines. The Group has engaged an assessment agency to conduct impairment tests and is currently conducting related work. Based on the preliminary calculations of the assessment agency, it is estimated that impairment provisions for relevant assets to be confirmed for the year ending December 31, 2025 will be approximately RMB 6 billion to RMB 8.3 billion.