HK Stock Market Move | CNBM(03323) fell by more than 4% again. In the first half of the year, profits turned into losses by nearly 900 million yuan. The profits from new materials were not able to offset the drag from the basic building materials sector.

CNBM (03323) fell by over 4%, dropping more than 40% from its peak in June. As of the time of writing, it dropped by 3.91% to 3.69 Hong Kong dollars with a trading volume of 105 million Hong Kong dollars. On the news front, CNBM announced that it is expected to incur a net loss of approximately 8.9 billion yuan in the first half of the year, compared to a profit of 13.6 billion yuan in the same period last year, resulting in a shift from profit to loss. This is mainly due to a decrease in the selling prices of the company's main products such as cement, ready-mixed concrete, and aggregates, a decrease in the sales volume of ready-mixed concrete and gypsum boards, an increase in impairment provisions for properties, plants, and equipment, an increase in impairment provisions for goodwill, and an increase in net losses from the fair value changes of financial assets recognized in the income statement. The announcement stated that some of the losses were offset by the increase in selling prices of glass fiber and the decrease in selling costs, the increase in selling prices of electronic cloth, an increase in sales volume of electronic cloth and lithium battery diaphragms, and a decrease in selling costs of cement and ready-mixed concrete. However, the profit growth in the new materials sector, in which the Group holds a lower stake, was not able to fully offset the profit decline in the basic construction materials sector, in which the Group holds a higher stake.