NAN NAN RES (01229) announced that the group expects to shift from a profit of approximately HK$47.1 million for the six months ended September 30, 2024 (interim 2024), to a loss of no more than HK$10 million for the six months ended September 30, 2025 (interim 2025).

The loss is primarily attributable to a fair value change loss of approximately HK$31.7 million related to the zero-coupon convertible bonds issued by the company in 2008, amounting to HK$200 million and maturing on March 13, 2026. These bonds were designated as financial liabilities measured at fair value through profit or loss during interim 2025.

Additional contributing factors include net foreign exchange losses (compared to net gains in interim 2024) and a decline in gross profit, mainly due to increased sales costs and lower average unit selling prices in the coal mining business.