Xingfa Aluminium Holdings Ltd (00098) has issued a profit warning, indicating that its net profit attributable to equity shareholders for the first half of 2026 is expected to fall to a range of RMB 165 million to RMB 171 million.

This compares with approximately RMB 270.9 million recorded in the same period of 2025, representing a significant decline year-on-year.

The company's board attributes the anticipated reduction in profit primarily to intensifying industry competition and the sustained uptrend in aluminium raw material prices, which have exerted downward pressure on the group's product gross margins, consequently dragging down its net profit attributable to shareholders.