Zhitong Financial APP learned that Mutual Textile (01382) fell more than 5%. As of press time, it fell 5%cubecrash.84%, reported at HK$1.45, with a turnover of HK$4.4567 million.
On the news front, Mutual Textile announced that it expects profit attributable to equity holders of the company for the fiscal year ending March 31, 2024 to fall by approximately 60.6% year-on-year to HK$106 million. The decline in expected profits was mainly due to higher net interest expenses of approximately HK$47.4 millioncubecrash; the initial operating loss incurred during the establishment stage of the new factory in Vietnam was approximately HK$32.1 million; and the share of the results of the associate company Teejay and the impairment loss caused by the company's investment in Teejay totaled approximately HK$120 million.
The Company stated that the impairment loss and share of Teejay's results were related to the carrying value of the Company's investment in Teejay and were non-cash in nature. Therefore, the impairment loss and share of Teejay's results will not have any impact on the company's current and future cash flow and daily operations.