Watts Int'l (02258.HK) issued a profit warning, with an expected loss of between RMB 0.111 billion and 0.124 billion for the six months ending in June, compared to a net profit of RMB 12 million in the same period last year. This is mainly due to an increase in impairment losses on financial assets and contract assets; and reduced revenue of about 46.2% in municipal public construction business due to the challenging macroeconomic environment and weak mainland real estate market.