Zhitan Finance APP news, Kin Shing International Holdings (09689) released its interim performance for the six months ended June 30, 2024, with a profit of 0.77 billion yuan (RMB, the same below), a year-on-year increase of 2.79%; a loss of 0.747 million yuan, a year-on-year narrowing of 91.21%; and a basic loss per share of 0.1 cents.

The announcement stated that due to the increased popularity of electric vehicles after the COVID-19 epidemic, the Group has been exploring the trade of naphtha since the second half of 2023. Naphtha is a finished product oil used as raw material in the chemical industry. In order to ensure a stable supply and meet potential market demand, the Group maintains a certain inventory of naphtha, which also exposes it to price risks. As a result, during the six months ended June 30, 2024, due to the uncertainty of market trends, the Group occasionally chose to sell the naphtha inventory at prices lower than the purchase cost in order to maintain its market position and further reduce price risks, resulting in a gross loss of approximately 12.672 million yuan in the sale of finished oil.