Movement Alert|XTALPI Falls 5.28% in Regular Trading, H1 Swing from Profit to Loss Triggers Selling Pressure

Market Focus07-27

On July 27, XTALPI fell 5.28% in regular trading, trading at HK$7.12/share, with turnover of HK$76.06 million.

On the news front, the company issued a profit warning on July 24, projecting a net loss attributable to equity holders of RMB 215 million to RMB 275 million for the first half, compared with a net profit of RMB 82.8 million in the same period last year, marking a swing from profit to loss. Revenue for the period is expected at RMB 380 million to RMB 400 million, declining year-over-year primarily due to a high base formed by a USD 51 million upfront payment recognized from the DoveTree pipeline licensing project in the prior period. The company noted it has received a second payment of USD 19 million under the same project during the current reporting period. Additionally, R&D expenses are expected to be no less than RMB 340 million, representing over 50% year-over-year growth, further compressing profit margins.

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