HK Stock Market Move | MEILAN AIRPORT (00357) fell more than 3%, the company recently issued a profit warning, expecting annual net losses to expand by not more than 400 million yuan compared to the previous year.

MEILAN AIRPORT (00357) fell more than 3%, dropping to 3.25% at the time of the report to 8.05 Hong Kong dollars, with a turnover of 5.2137 million Hong Kong dollars. On the news front, recently, MEILAN AIRPORT announced that it is expected to incur a net loss of no more than 400 million yuan for the fiscal year ending December 31, 2024 (the 2024 fiscal year) by the group (the group had a net loss of approximately 169 million yuan for the fiscal year ending December 31, 2023). The announcement stated that the company's expected loss is mainly due to the payment of settlement amounts related to the arbitration case in 2024, based on the second phase arbitration award (also the final award of the case) and subsequent negotiations between the company and the arbitration applicant. Excluding the impact of the arbitration case, the group's net loss in the fiscal year 2024 is expected to be largely in line with the previous year; the remaining loss, after excluding the impact of the arbitration case, is mainly due to the significant increase in depreciation and operating expenses related to assets of the Phase II expansion project of Meilan Airport, and the increase in revenue from the growth in production and operational indicators of Meilan Airport is not sufficient to cover the additional operating costs.