On October 13, Minhua Holdings issued a mid-term profit warning. During this period, profit attributable to the Company's equity holders will be reduced by about 70% to 90% compared to HK$1,146 billion in the same period last year. According to the announcement, according to the data currently available to the Group, the Group's main revenue remains stable compared to the same period last year, but the above decline in profit is mainly due to two reasons: First, 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, industry trends have intensified, product price adjustments are lagging behind, unable to fully cover the increase in raw material costs, and the Group's overall gross margin has declined. Although main revenue remained stable, profit was mainly impacted by the cost side. Second, due to rising raw material costs and weak market demand, the US business acquired in December 2025 caused operating losses, and Southern Motion, 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.
Zhitongcaijing · 2d ago
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On October 13, Minhua Holdings issued a mid-term profit warning. During this period, profit attributable to the Company's equity holders will be reduced by about 70% to 90% compared to HK$1,146 billion in the same period last year. According to the announcement, according to the data currently available to the Group, the Group's main revenue remains stable compared to the same period last year, but the above decline in profit is mainly due to two reasons: First, 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, industry trends have intensified, product price adjustments are lagging behind, unable to fully cover the increase in raw material costs, and the Group's overall gross margin has declined. Although main revenue remained stable, profit was mainly impacted by the cost side. Second, due to rising raw material costs and weak market demand, the US business acquired in December 2025 caused operating losses, and Southern Motion, 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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