Aowei details major impairment at Jiheng Mining and valuation basis

Aowei Holding Limited ( (HK:1370) ) has shared an announcement.

Aowei Holding Limited issued a supplemental announcement explaining a substantial impairment loss of about RMB182.8 million in 2025, largely tied to RMB171.1 million written down on property, plant and equipment and construction in progress at its Jiheng Mining unit. The company cited falling sand and gravel prices, underutilised capacity due to climate and policy constraints, weak construction demand and fierce industry competition as key triggers for engaging an independent valuer and reassessing asset recoverability.

Management and the valuer adopted a value‑in‑use approach for Jiheng Mining’s assets, arguing that historical cost and market comparables were inappropriate for capturing the economics of mining rights. The valuation was based on projected cash flows through 2033, reflecting an assumed extension of the mining permit, a budgeted average selling price of RMB27 per ton supported by expected demand from Xiong’an infrastructure projects and a pre‑tax WACC of about 10.9%, providing investors with greater transparency on assumptions underpinning the impairment and the mine’s future contribution.

More about Aowei Holding Limited

Aowei Holding Limited is a mining-focused company, operating through subsidiaries such as Laiyuan County Jiheng Mining Co., Ltd. The Group is engaged in the production of sand and gravel materials, serving mainly construction and infrastructure projects in regions including North China and the Xiong’an New Area, where demand for aggregates remains relatively robust despite industry headwinds.

Average Trading Volume: 99,129

Technical Sentiment Signal: Sell

Current Market Cap: HK$376.1M

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