KINETIC DEV (01277) announces a profit warning, expecting the after-tax net profit for the first half of the year to increase by 31% to 40% year-on-year.

Strength Development (01277) announced that it expects to achieve a net profit after tax of approximately RMB 730 million to RMB 780 million in the first half of 2026, an increase of 31% to 40% year-on-year. The significant year-on-year growth in the group's performance for the first half of 2026 is mainly due to: (i) driven by the recovery of market coal prices, the average selling price of the group's coal products in the first half of 2026 increased by about 18% year-on-year, leading to profit growth in the coal business; (ii) benefiting from the group's continuous implementation of efficient financial control measures, the group's profitability has further improved. In the first half of 2026, the unit cost of the group's coal products decreased by 9% to 12% year-on-year, and both management expenses and selling expenses saw a year-on-year decrease of between 5% and 7%.