HK Stock Market Move | After Johnson Electric (00179) issued a profit warning, the stock opened more than 5% lower. It is expected that the annual net profit attributable to shareholders will decline by about 21% to 25% year-on-year.

JOHNSON ELEC H (00179) opened more than 5% lower after issuing a profit warning, dropping 5.37% to 24.3 Hong Kong dollars, with a turnover of 2.4786 million Hong Kong dollars as of the time of release. In terms of news, JOHNSON ELEC H issued a statement stating that in the continuing highly volatile and unpredictable operating environment of the global manufacturing industry, it is expected that the turnover and gross profit margin of Dechang Electric Motors will be roughly similar to the previous year. It is expected that the annual net profit attributable to shareholders as of the end of March this year will decrease to 207 million to 197 million US dollars, representing a decrease of about 21% to 25% compared to the same period last year. The announcement stated that the expected decrease in net profit is due to the combined impact of multiple factors. Distribution and administrative staff costs, the impact of exchange rate movements on operating expenses, provisions for claims and compensations, and the rise in other operating items are expected to cause a decrease in net profit of about 12% to 16%. The remaining decrease is mainly due to non-cash impairment of intangible assets confirmed in a past acquisition, as well as adverse changes in the fair value of certain investments that occurred annually.