HK Stock Market Move | LEOCH INT'L (00842) surged over 50% in early trading, suggesting the plan to spin off Leoch Energy for a US listing.

LEOCH INT'L (00842) surged more than 50% in early trading, rising 30.36% to HK$0.73 at the time of publication, with a trading volume of HK$144.259 million. In terms of news, LEOCH INT'L announced that after considering various factors such as the current market and regulatory conditions, they have decided not to proceed with the proposed spin-off of Leoch Energy Inc. and its listing on the US stock exchange. Leoch Energy Inc. will adjust its financing strategy and seek new opportunities. Furthermore, LEOCH INT'L's annual performance showed a total revenue of RMB 17.212 billion for the year, representing a year-on-year growth of 6.7%. The parent company recorded a loss attributable to shareholders of RMB 174 million, reversing from a profit to a loss in the previous year. The company stated that business growth fell short of expectations, with significant regional market growth differentiation; profitability significantly declined, with operating performance shifting from profit to loss, highlighting further operating pressures. Despite a 6.7% year-on-year increase in sales revenue, profit margins continued to narrow, with full-year profits turning into a loss of RMB 191 million compared to the previous year.