Man Wah profit plunges on rising material costs
Furniture seller Man Wah Holdings Ltd. (1999.HK) said on Monday it expects to report a sharp drop in its profit for the six months through September, the first half of its current fiscal year, due to rising material costs and difficulties for its U.S. operation.
The company said it expects to report its profit in the first half of its fiscal year fell between 70% and 90% from the HK$1.15 billion ($147 million) it reported in the six months to September 2025. It added that its revenue remained stable over the period.
Man Wah said that the Middle East conflict has caused key chemical raw material prices to surge, driving up its production costs. It added that it recorded an operating loss from a U.S. business that it acquired in December 2025, and that a unit of that acquired company has filed for Chapter 11 bankruptcy in the U.S.
Despite the sharp profit decline, Man Wah said its fundamental business remains solid and its revenue is stable. It added it plans to report its results for the first half of its fiscal year on Nov. 16.
Man Wah’s stock opened lower on Tuesday and was down 13.8% at HK$2.37 by the midday break. The stock has lost nearly half of its value this year.
By Doug Young
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