HK Stock Market Move | MAN WAH HLDGS (01999) opens more than 6% lower after profit warning, expecting interim profit attributable to shareholders to decrease significantly by approximately 70% to 90% year-on-year.

MAN WAH HLDGS (01999) opened more than 6% lower after its profit warning. As of press time, it fell 6.18% to HK$2.58, with a turnover of HK$600,600. On the news front, on October 13, MAN WAH HLDGS issued an announcement that the Group expects the profit attributable to owners of the Company for the six months ended September 30, 2026 to decrease significantly by approximately 70% to 90% compared with the profit of approximately HK$1,145.6 million for the same period in 2025. Based on information currently available to the Group, although the Group's main revenue remained stable compared with the same period last year, the above decline in profit was mainly attributable to: Since the outbreak of the Middle East conflict, prices of core chemical raw materials have continued to rise significantly, driving up the Group's product production costs. At the same time, industry involution has intensified, and product selling price adjustments have lagged, failing to fully cover the increase in raw material costs, resulting in a decline in the Group's overall gross profit margin. The Group's main revenue during the period remained basically stable, and profit was mainly affected by cost-side shocks. The U.S. business acquired in December 2025 incurred operating losses due to rising raw material costs and weak market demand, and Southern Motion, Inc. (a direct wholly-owned subsidiary of the acquired company), has applied in the United States to commence Chapter 11 bankruptcy proceedings. Impairment losses on goodwill and other intangible assets related to the acquisition were recognized during the period.