Lh Group (01978.HK) issued a profit warning, opened low by 10% today, hit a low of 0.405 yuan, and fell 26.4% at one point, reaching a new low since March 2021. It is now reported at 0.445 yuan, a decrease of 19.09%, with a turnover of 4.152 million shares involving 1.7924 million yuan in funds.

The company stated that compared to the net profit of HKD47.6 million in the same period last year, it is expected to incur a loss of no more than HKD30 million at the end of June this year. This is mainly due to the global economic instability, geopolitical changes, and sustained weakness in local consumer purchasing power, resulting in a decrease in revenue; and the provision for impairment allowance for some underperforming properties, factories and equipment, and right-of-use assets.