HK Stock Market Move | CHINA QINFA (00866) rises by more than 7% again. The company divests its coal business in Shanxi. The capacity ramp-up progress of SDE in Indonesia is going smoothly.

CHINA QINFA (00866) rose more than 7%, as of the time of writing, up 6.81%, at HK$4.08, with a turnover of HK$49.464 million. On the news front, CHINA QINFA issued a profit warning. It is expected to incur a post-tax loss for the full year not exceeding RMB 98 million, turning from a profit to a loss compared to last year, mainly due to the divestment of its domestic Shanxi coal business. Guosheng released a research report stating that this profit warning clearly demonstrates the financial impact of the company's divestment of its domestic Shanxi coal business, with an operating loss not exceeding RMB 226 million, indicating that the company's historical loss-making assets have been largely cleared. The bank pointed out that the company has completely unburdened itself and will focus entirely on its Indonesian coal business, which has superior resource endowment and broad growth prospects. By 2025, the original coal production of the SDE coal mine will double year-on-year, and the clean coal production will increase by over 9 times, demonstrating the smooth progress of the capacity expansion at the SDE mine and highlighting a clear and highly certain path for future capacity growth.