Shares of CHINA DONGXIANG (03818) have continued their downward trajectory, falling more than 6% in today's session. This follows a significant drop of nearly 11% in the previous trading day.

At the time of writing, the stock is down 6.06%, trading at HK$0.31, with a turnover of HK$2.2365 million.

The decline comes after the company issued a profit warning. CHINA DONGXIANG anticipates recording a net loss attributable to equity holders not exceeding RMB 180 million for the financial year ended March 31, 2024. This represents a sharp reversal from the prior year, which saw a net profit attributable to equity holders of approximately RMB 207 million.

The company attributed the expected loss to several key factors. These include a decrease in gains from fair value changes of financial assets due to capital market volatility in the second half of the 2025/2026 fiscal year, particularly a sustained decline in March 2026. Furthermore, the group incurred foreign exchange losses as the US dollar depreciated against the Renminbi, impacting its substantial US dollar-denominated assets. An additional factor was the provision for impairment of loans extended to current and former management personnel.