{Economic Information Daily, 13th} Man Wah Holdings (01999) is down 6.2%, trading at HK$2.58, with approximately 230,000 shares traded, involving HK$6 million.
Man Wah Holdings issued a profit warning, expecting that the profit attributable to equity holders of the company for the six months ended September 30 this year will decrease significantly by approximately 70% to 90% year-on-year, compared to a profit of about HK$1.146 billion in the same period last year.
The company stated that main business revenue during the period remained stable compared to the same period last year. The significant decline in profit was mainly attributable to the continuous sharp rise in prices of core chemical raw materials since the outbreak of the Middle East conflict, leading to higher production costs. Coupled with intensified industry competition, product price adjustments lagged, failing to fully offset the increase in raw material costs, resulting in an overall decline in gross profit margin.
Meanwhile, the company's US business, acquired in December last year, recorded operating losses due to rising raw material costs and weak market demand. Southern Motion, a directly wholly-owned subsidiary of the acquired company, has filed for Chapter 11 bankruptcy protection in the US, and the goodwill and other intangible assets related to the acquisition were recognized for impairment losses during the period.
Currently, the Hang Seng Index stands at 24,172, down 99 points or 0.4%, with turnover on the main board reaching nearly HK$2.5 billion. The Hang Seng China Enterprises Index stands at 8,136, down 32 points or 0.4%. The Hang Seng Tech Index stands at 4,129, down 39 points or 1%. (vs)
Man Wah Holdings issued a profit warning, expecting that the profit attributable to equity holders of the company for the six months ended September 30 this year will decrease significantly by approximately 70% to 90% year-on-year, compared to a profit of about HK$1.146 billion in the same period last year.
The company stated that main business revenue during the period remained stable compared to the same period last year. The significant decline in profit was mainly attributable to the continuous sharp rise in prices of core chemical raw materials since the outbreak of the Middle East conflict, leading to higher production costs. Coupled with intensified industry competition, product price adjustments lagged, failing to fully offset the increase in raw material costs, resulting in an overall decline in gross profit margin.
Meanwhile, the company's US business, acquired in December last year, recorded operating losses due to rising raw material costs and weak market demand. Southern Motion, a directly wholly-owned subsidiary of the acquired company, has filed for Chapter 11 bankruptcy protection in the US, and the goodwill and other intangible assets related to the acquisition were recognized for impairment losses during the period.
Currently, the Hang Seng Index stands at 24,172, down 99 points or 0.4%, with turnover on the main board reaching nearly HK$2.5 billion. The Hang Seng China Enterprises Index stands at 8,136, down 32 points or 0.4%. The Hang Seng Tech Index stands at 4,129, down 39 points or 1%. (vs)
