XINGYE ALLOY (00505) Issues Profit Warning, Forecasts 50% Decrease in 2025 Profit Attributable to Equity Shareholders

Stock News
Jan 30

XINGYE ALLOY (00505) has announced that the Group anticipates a decrease of approximately 50% in profit attributable to its equity shareholders for 2025 compared to the previous year. The expected decline in profit is primarily attributed to the following factors: (1) The company utilizes copper futures contracts to hedge against copper price volatility; due to the rapid and substantial surge in copper prices during the fourth quarter of 2025, the company incurred significant losses. (2) Increased labor costs resulting from the hiring of new employees and salary adjustments. (3) Higher depreciation costs arising from the acquisition of new equipment and other infrastructure. And (4) A reduction in the gross profit margin from overseas sales, caused by the Chinese government's cancellation of export tax rebates for certain copper product categories.

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