KINETIC DEV (01277) issues profit warning, expecting a year-on-year decrease in net profit after tax of 50% to 60%.

KINETIC DEV (01277) announced that it expects the Group's profit after tax for the year ending December 31, 2025 to decrease by 50% to 60% compared to the year ending December 31, 2024. This is mainly due to the following factors: - Market volatility in 2025, with coal prices decreasing overall leading to a decrease in net profit of coal main business by approximately 40% to 45%. To cope with the fluctuations in coal prices, the Group has taken proactive measures to improve cost control and operational efficiency while ensuring safety in production to mitigate the impact on profitability. It is expected that the performance of the Group will improve if coal market prices turn around in the future. - Facing market fluctuations, the Group has made a non-cash impairment provision of approximately RMB 250 million to RMB 290 million based on prudent principles. This non-cash adjustment will not have any effect on the core business operations or cash flow of the Group. - The Group is experiencing operating losses in the early stages of expanding its non-core business, amounting to approximately RMB 80 million to RMB 90 million. Despite the short-term impact on performance this year, it is expected that the non-core business will gradually mature and support the Group's long-term diversified development in the future.