CGN Ming (HK stock code: 1164.HK) held its 2018
annual results conference in Hong Kong on March 27, announcing its results for
the year ended December 31, 2018. The annual performance in 2018, the main
financial performance, business highlights, investment highlights of CGN Ming
as well as the global nuclear and natural uranium industry were introduced in
the conference. 2018 witnessed an annual profit growth of 94.7% year on year,
and a 100% increase of net profit margin from 14% in 2017 to 28% in 2018.
Reviewing 2018, CGN Ming dug deep into the value of existing assets,
proactively expanded sales channels, and orderly promoted the development of
reserved uranium mines. Despite the trough of the industry cycle, CGN Ming still achieved sustained profits and
dividends, delivering a satisfactory report card.
In terms of the two mines (Semizbay-U Mine and Ilkley-U
Mine) in process, due to the strict financial budgeting, business plan
formulation, sales & production management, the annual production cost was
well controlled and the cost advantage continued to lead in the industry. In
terms of the reserve uranium mine, the PLS project of Fission completed the
exploration in winter and summer, achieving sound results on the whole. A
uranium mineralization section with high grade and large thickness is found in
all upgrade boreholes of resource exploration, which is helpful to upgrade
partial resource level of PLS project from inferred level to control
level.
In
January 2019, CGN Ming acquired a 100% stake in CGN Global Uranium Limited (CGN
GU). CGN GU is one of the top five natural uranium traders around the world.
The acquisition will enhance the efficiency of CGN Ming’s overall capital use,
reduce the financial costs, and help expand the customer base, enabling CGN
Ming to get involved in the broader global trade market for natural uranium and
make full use of the growing natural uranium package sales to stimulate the
synergistic effect.
At the press conference, CGN Ming senior executives interacted with investors and answered questions raised by investors concerning global nuclear power development, development plan of PLS project, CGN Ming’s future dividend policy and future development plan.