Nine Dragons Paper Holdings Ltd. shares fell early Monday after the company warned of a first-half net loss.
Shares of the Hong Kong-listed paper product manufacturer fell as much as 8.6% to 6.28 Hong Kong dollars (US$0.80). They were last 7.0% lower at HK$6.39.
Net loss for the first half of the year is expected to range between CNY1.25 billion (US$184.5 million) and CNY1.45 billion, it said in a filing late Friday, citing higher production costs due to the Russia-Ukraine conflict.
The company also said that it expected a “significant decrease” in its gross profit margins in the first half.
While a first-half loss was widely expected by the market, the net loss warning was slightly worse-than-expected, Citi analysts Eric Lau and Alice Cai said in a research report.