Fullreach Electronics (01750.HK) issued a profit warning, expecting a net loss of no less than 2.8 million yuan for the six months ending in June this year, compared to a net profit of approximately 0.537 million yuan for the same period last year.

The group stated that the expected change from profit to loss is mainly due to a decrease in the group's revenue of approximately 25.6 million yuan or 29.8%. This is because of the increase in the employee costs for local employees in Hong Kong, which has led to a decrease in sales orders for low-voltage distribution and control devices, as well as an increase in administrative costs.