STOCKS | Shell Electric Warns Of Half-Year Loss Of Up To HK$5 Million

Shell Electric Holdings (2381), a veteran Hong Kong maker of electric fans and power tools, issued a profit warning and said it expects a loss of HK$2 million to HK$5 million for the six months ended June 30, reversing from profit. According to Ming Pao, the company said tensions between the U.S. and Iran disrupted sales to the Middle East and pushed up the cost of several raw materials. Shipments of some new products originally scheduled for delivery in the first half were also delayed by product design updates, pushing delivery and revenue recognition into the second half. Shell Electric added that a challenging economic environment weakened market demand and reduced customer orders, dragging down gross margin and resulting in the expected loss.