XINGFA ALUM (00098) shares plunged 11.35% in early trading on Thursday following the release of its interim results for the first half of 2025. The aluminum producer's financial performance showed a mixed picture, with revenue growth overshadowed by a significant drop in profitability.

According to the company's report, XINGFA ALUM's revenue for the six months ended June 30, 2025, reached RMB9.323 billion, representing an 11.66% increase compared to the same period last year. However, profit attributable to shareholders declined sharply to RMB271 million, a substantial decrease of 28.41% year-on-year. Basic earnings per share stood at RMB0.64.

The company's gross profit for the period was reported at RMB 617.9 million, with a gross margin of 6.6%. The stark contrast between revenue growth and profit decline suggests that XINGFA ALUM is facing significant pressure on its profit margins, possibly due to rising costs or competitive pricing in the aluminum market. This disappointing profitability performance appears to have sparked a negative reaction from investors, leading to the sharp decline in the company's stock price during the morning session.