XXF Group (02473) saw its shares drop more than 3% on Thursday, trading at HK$0.435 at the time of writing, down 3.33% with a turnover of HK$13.46 million.

The decline comes after the company issued a profit warning, revealing that for the six months ending June 30, 2026, it expects to record a profit attributable to owners of approximately RMB 16.5 million to RMB 18 million. This compares with a profit of about RMB 22.5 million reported for the same period in 2025.

The anticipated decrease is primarily attributed to industry-wide factors. During the 2026 interim period, revenue from the company's higher-margin auto retail and financing business declined year-on-year, leading to lower gross profit and period profit. Despite this, the company noted that in response to structural changes in end-market vehicle demand, it adjusted its procurement-to-sales ratio for new energy vehicles and strengthened inventory management. As a result, while revenue from auto retail and financing declined year-on-year, it still outperformed the industry average.

Specifically, revenue from auto retail and financing operations is expected to be approximately RMB 527 million for the 2026 interim period, down from RMB 606.6 million in the first half of 2025. This represents a decrease of roughly RMB 79.5 million, or 13.1% year-on-year.