Changes in Hong Kong stocks | South-South Resources (01229) fell nearly 4% and is expected to change from profit to loss in the medium term to no more than HK$10 million

The Zhitong Finance App learned that South-South Resources (01229) fell nearly 4% in the afternoon. As of press release, it was down 3.92% to HK$0.245, with a turnover of HK$146,800.

According to the news, South-South Resources issued a profit warning in the afternoon. The Group expects to make a profit of about HK$47.1 million in the six months ending September 30, 2024, and turn it into a loss of no more than HK$10 million for the six months ending September 30, 2025. Mainly due to the fair value change loss of the HK$200 million zero-coupon convertible bond issued by the company in 2008 (due to expire on March 13, 2026), the bond was designated as a financial liability recorded at fair value and treated within profit and loss in mid-2025, amounting to approximately HK$31.7 million. Other factors that had a net impact include net exchange losses, which were net exchange gains in mid-2024, and a decrease in gross profit, mainly due to an increase in sales costs and a decrease in the average unit selling price of the coal mining business.