HK Stock Market Move | MAN WAH HLDGS(01999) extends decline by over 4%, dragged by rising costs and US business impairment; interim profit expected to drop by up to 90%

MAN WAH HLDGS(01999) extended its decline by over 4%, after the stock plunged more than 13% yesterday. As of press time, it fell 3.99% to HK$2.285, with a turnover of HK$6.4185 million. On the news front, MAN WAH HLDGS recently issued a profit warning, expecting profit attributable to owners of the company for the six months ending at the end of September this year to decrease significantly by approximately 70% to 90% compared with approximately HK$1.1456 billion in the same period of 2025. This is mainly attributable to the continuous sharp rise in prices of core chemical raw materials since the outbreak of the Middle East conflict, which has pushed up product production costs; coupled with intensifying industry competition, there is a lag in product price adjustments, which has not been able to fully offset the increase in raw material costs, causing the overall gross profit margin to decline. At the same time, the US business acquired by the company in December last year incurred 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 proceedings in the United States, and impairment losses on the related acquisition goodwill and other intangible assets have been recognized during the period.