HK Stock Market Move | CHINA QINFA (00866) rose nearly 7% during trading hours, performance dragged down by divestment of Shanxi coal business, strong momentum in Indonesian coal business growth.

CHINA QINFA (00866) rose nearly 7% during trading, reaching an increase of 4.05% at a price of 3.6 Hong Kong dollars, with a trading volume of 11.357 million Hong Kong dollars. On the news front, CHINA QINFA issued a profit warning. It is expected to incur a loss of no more than 98 million yuan after tax for the full year, compared to a profit of about 556 million yuan after tax in 2024, resulting in a shift from profit to loss. This is mainly due to the divestment of domestic coal business in Shanxi, China. Guosheng released a research report stating that this profit warning clarifies the financial impact of the company's divestment of its domestic Shanxi coal business, with an operating loss not exceeding 226 million yuan. This signifies that the company's historical legacy losses have been largely cleared. The company has now completely shed its burden and will focus entirely on its Indonesian coal business, which has superior resource endowment and vast growth potential. The raw coal production at the SDE coal mine in 2025 is expected to double year-on-year, with coal washing production increasing more than 9 times, indicating smooth progress in the ramp-up of production capacity at the SDE mine and highlighting a clear and high certainty path for future production capacity growth.