HK Stock Market Move | Yue Yuen Industries (00551) opened nearly 10% lower after issuing a profit warning. It is expected that the net profit for the first quarter will decrease by up to 55% year-on-year.

YUE YUEN IND (00551) opened nearly 10% lower, falling by 9.78% to 15.22 Hong Kong dollars as of the time of writing, with a trading volume of 2.6635 million Hong Kong dollars. On the news front, YUE YUEN IND issued a profit warning, with the group expecting the attributable net profit for the three months ending March 31, 2026 to decrease by approximately 50% to 55% compared to the same period last year. This is mainly due to fluctuations in demand and the impact of tariff tariffs: manufacturing business revenue decreased by 5.5% compared to the same period last year, leading to operating deleverage; rising labor costs; production capacity constraints and declining production efficiency. The company stated that it will continue to closely monitor changes in the global political and economic environment, as well as potential impacts of short-term regional conflicts on shipping logistics and raw material supply stability. The company will continue to prioritize rapid response as its core guiding principle, balancing demand, order scheduling, and labor supply to strengthen operational efficiency.