中核国际二零二三年中期报告

Stock Code: 2302 CONTENTS Corporate Information2 Management Discussion & Analysis3 Condensed Consolidated Statement of Profit or Loss andOther Comprehensive Income14 Condensed Consolidated Statement of Financial Position15 Condensed Consolidated Statement of Changes in Equity17 Condensed Consolidated Statement of Cash Flows18 Notes to the Condensed Consolidated Interim FinancialStatements19 Other Information39 CNNC INTERNATIONAL LIMITED (the “Company” together with its subsidiaries is referred to as the“Group”)(Incorporated in the Cayman Islands with limited liability) BOARD OF DIRECTORS Chairman and Non-Executive DirectorWang Cheng Chief Executive Officer and Executive DirectorZhang Yi Non-Executive DirectorWu Ge Independent Non-Executive DirectorsCui LiguoZhang LeiChan Yee Hoi AUDIT COMMITTEEChan Yee Hoi(Chairman)Wu GeCui LiguoZhang Lei REMUNERATION COMMITTEE Cui Liguo(Chairman)Zhang YiWu GeZhang LeiChan Yee Hoi NOMINATION COMMITTEE Wang Cheng(Chairman)Zhang YiCui LiguoZhang LeiChan Yee Hoi COMPANY SECRETARYLi Philip Sau Yan 2302 STOCK CODE2302 87%96%76,144,000573,831,000673,00017,624,000200,0001,600,00021,161,00019,346,0006,429,0002,871,0008,330,00018,079,000 For the six months ended 30th June, 2023 (the “Period”) togetherwith the corresponding figures for the six months ended 30th June,2022 (the “2022 Period”), the Group has recorded a decrease inrevenueand gross profit of approximately 87%and 96%respectively,to approximately HK$76,144,000(2022 Period:approximatelyHK$573,831,000)and HK$673,000(2022 Period:approximately HK$17,624,000) respectively. The decrease in revenueand gross profit was attributed by a drop in the sales of uraniumproducts under trades with independent third parties, which wasprimarily due to the increase in interest rates in 2023, where as aresult,the cost of international trade funds had increasedsignificantly. In this economic climate, traders of uranium productspreferredto hold onto their currency,and the minimal pricefluctuationsin the international natural uranium market madetradingunappealing.The disinclination further exacerbated thereduction of offshore trading business opportunities for both buyersandsellers in the natural uranium market amidst the highborrowingcosts.Another contributing factor would be that thedeliveryplan of the Rössing Uranium Mine(has the meaningascribed to it in the circular of the Company dated 31st May, 2022(the “Circular”)) is largely scheduled in the second half of 2023,similarto its delivery schedule in 2022.Nonetheless,the Groupcompleted sales of approximately 0.2 million pounds (2022 Period:approximately 1.6 million pounds) of natural uranium products forthePeriod.There was also an increase of share of result of anassociateto approximately HK$21,161,000(2022 Period:approximately HK$19,346,000), and an increase in finance cost toapproximatelyHK$6,429,000(2022 Period:approximatelyHK$2,871,000)due to an increase in market interest rates ingeneral. As a result of the foregoing, a net profit of approximatelyHK$8,330,000(2022 Period:approximately HK$18,079,000)wasrecorded for the Period. MARKET AND BUSINESS OVERVIEW 4857.75565156 The interest rate hikes during the Period has increased the cost ofinternationaltrade funds significantly,and many capital intensivesectorshave been impacted.In this economic climate,traders ofuraniumproducts preferred to hold onto their currency,and theminimalprice fluctuations in the international natural uraniummarketmade trading unappealing.With the flow of the naturaluraniumspot market being greatly slowed down by financialinvestors, the investment in natural uranium by financial investmentinstitutionswas reduced significantly as compared to the 2022Period.The disinclination further exacerbated the reduction ofoffshore trading business opportunities for both buyers and sellers inthe natural uranium market amidst the high borrowing costs. Duringthe Period, the spot price of natural uranium fluctuated betweenUS$48/lbU3O8andUS$57.75/lb of U3O8,and settled atapproximately US$56/lb U3O8at the end of the Period. During thePeriod, the long-term natural uranium contracting price increasedfrom US$51/lb U3O8to approximately US$56/lb U3O8at the end ofthe Period. 76,144,000573,831,000200,0001,600,000 During the Period, the Group has continued its business of tradinguranium products in its normal and usual course of business. TheGroup has been focusing on and developing its uranium productstrading business, and actively seeking high-quality uranium resourcesprojects to complement the development of its parent group. TheGroup generated revenue from trading of uranium of approximatelyHK$76,144,000(2022 Period:approximately HK$573,831,000),corresponding to sales of approximately 0.2 million pounds (2022Period:approximately 1.6 million pounds)of natural uraniumproducts. Asdisclosed in the announcement of the Company dated 13thNovember, 2020, the Group was unsuccessful in the appeal to thelawsuit relating t