South South Resources (01229.HK) issued a profit warning, expecting a mid-term loss of no more than HKD 10 million, compared to a profit in the same period last year.

Zhongtong Finance APP News, Nanshan Resources (01229.HK) announced that the Group is expected to have a surplus of approximately 47.1 million Hong Kong dollars for the six months ending on September 30, 2024 (2024 interim period), which will be turned into a loss of no more than 10 million Hong Kong dollars for the six months ending on September 30, 2025 (2025 interim period). This loss is mainly due to the fair value change loss of the 200 million Hong Kong dollars zero-coupon convertible bonds issued by the company in 2008 (due on March 13, 2026), which was designated as a financial liability accounted for at fair value and recognized in profit or loss in the 2025 interim period, with an amount of approximately 31.7 million Hong Kong dollars. Other factors contributing to the net impact include: net exchange loss, compared to net exchange gain in the 2024 interim period, and a decrease in gross profit, mainly due to the increase in sales costs and decrease in average unit selling price of the coal mining business.