Zhitong Finance App News, Minhua Holdings (01999) announced that the Group expects the profit (profit) attributable to the Company's equity holders for the six months ending September 30, 2026 to be drastically reduced by about 70% to 90% compared to the profit of approximately HK$1,145.6 million for the same period in 2025.

According to the information currently available to the Group, although the Group's main revenue remained stable compared to the same period last year, the decline in profit was mainly due to:

(1) Since the outbreak of the Middle East conflict, the prices of core chemical raw materials have continued to rise sharply, driving up the production costs of the Group's products. At the same time, the internal volume of the industry intensified, product price adjustments were lagging behind, failed to fully cover the increase in raw material costs, and the Group's overall gross margin declined. The Group's main revenue remained stable during the period, and profit was mainly impacted by the cost side.

(2) The US business acquired in December 2025 caused 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 filed for Chapter 11 bankruptcy proceedings in the US. Goodwill and other intangible assets related to the acquisition confirmed impairment losses during the period.

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