HK Stock Market Move | CHINA QINFA (00866) rises by over 6% again, with its subsidiary planning to sell Shanxi coal mine assets for 30 million yuan, focusing resources on Indonesian coal business.

CHINA QINFA (00866) rose by over 6% again, with a cumulative increase of over 35% within the month. As of the time of writing, it rose by 5.45% to 1.74 Hong Kong dollars, with a turnover of 15,413.33 million Hong Kong dollars. On the news front, on June 25th, CHINA QINFA announced that it will convene a special general meeting of shareholders on July 11, 2025, to consider and approve a very significant sale transaction and related transactions. According to the announcement, the seller, Hong Kong Qinfa International Trade Co., Ltd., and the buyer, Tianhe Group Limited, signed a purchase agreement on June 5, 2025, agreeing to sell all the shares of Perpetual Goodluck Limited for a consideration of 30 million yuan. The main reason for this sale is to address the financial situation of the selling group. The announcement stated that as of December 31, 2024, the equity holders of the selling group had a total loss of 169 million yuan, and their net liabilities exceeded the market value of their coal mines. Although the selling group reported a post-tax profit of 500 million yuan in 2024, excluding one-time gains, there was still a post-tax loss, indicating operational pressure. Therefore, selling this asset will help the company focus its resources on higher-growth business areas, especially in the coal business in Indonesia.