Johnson Electric Holdings (00179) opened more than 10% lower. As of press time, it was down 10.76% at HK$15.1, with a turnover of HK$5.6701 million.

On the news front, Johnson Electric Holdings announced that it expects profit attributable to shareholders for the six months ended September to be between US$50 million and US$58 million, a decrease of approximately US$75 million to US$83 million from US$133 million in the same period last year, representing a decline of 56% to 62%.

The company mentioned that one of the main reasons for the decline in net profit is foreign exchange-related effects. A considerable foreign exchange gain was recorded in the same period last year, while no equivalent gain was recorded in the current period. It is expected that foreign exchange factors will reduce net profit by approximately US$49 million to US$55 million.

In addition, rising raw material and other input costs, as well as inflationary pressures on labor and other operating costs, have also had a negative impact on profitability.