The Zhitong Finance App learned that Hutai Textile (01,382) fell by more than 5%. As of press release, it was down 5.84% to HK$1.45, with a turnover of HK$4.4567 million.

According to the news, Hutai Textile announced that the profit attributable to the company's equity holders for the fiscal year ending March 31, 2024 may drop by about 60.6% year over year to HK$106 million. The expected decline in profit is mainly due to higher net interest expenses of approximately HK$47.4 million; initial operating losses of approximately HK$32.1 million arising from the construction phase of the new plant in Vietnam; and impairment losses due to the performance of the associated company Teejay and the company's investment in Teejay totaling around HK$120 million.

According to the company, impairment losses and Teejay's performance attributable to Teejay relate to the book value of the company's investment in Teejay and are non-cash. Therefore, impairment losses and Teejay's performance attributable will not have any impact on the company's current and future cash flow and daily operations.