CNBM opened down over 9% due to expected losses of up to 4 billion RMB last year

China National Building Material (03323.HK) opened lower this morning (2nd) by 9.25% at HKD 5.1, with a pre-market transaction of 1.046 million shares, involving HKD 5.3346 million.

The company issued a profit warning, anticipating a loss of between RMB 2.3 billion and RMB 4 billion for the year ending December 31, 2025, compared to a net profit of RMB 2.387 billion for the same period in 2024. This is mainly attributed to increased impairment provisions for the group's properties, plants, and equipment, as well as goodwill impairment provisions, along with a decline in sales of its main product, cement. However, this was partially offset by a decrease in the cost of sales for cement and ready-mixed concrete, an increase in the selling price of fiberglass and a decrease in sales costs, an increase in sales of wind turbine blades and coatings, and an increase in profits from joint ventures.

China National Building Material expects that the increase in impairment provisions involves the properties, plants, and equipment corresponding to the production lines that will be exited after capacity replacement of certain cement clinker production lines. According to preliminary estimates by the evaluation agency, the relevant asset impairment provisions to be recognized for the previous year are expected to reach approximately RMB 6 billion to RMB 8.3 billion