Shares of XJ ELECTRICS (02619) plummeted 9.79% in early trading on Wednesday, following the company's announcement of disappointing interim results for 2025. The sharp decline reflects investors' negative reaction to the significant drop in both revenue and net profit reported by the electrical equipment manufacturer.

According to the company's financial report released after market close on Tuesday, XJ ELECTRICS saw its revenue decrease by 11.7% year-on-year to approximately 543 million yuan for the first half of 2025. More alarmingly, the net profit tumbled by 58.2% to 25.31 million yuan, resulting in earnings per share of just 0.12 yuan.

The company attributed the substantial decline in performance to reduced sales volume, which it says was primarily caused by uncertainties stemming from US tariff policies. This suggests that XJ ELECTRICS is facing challenges in its export markets, particularly in dealing with the ongoing trade tensions between China and the United States. As investors digest this news and reassess the company's growth prospects, the stock's sharp decline indicates a significant adjustment in market expectations for XJ ELECTRICS' future performance.