Analysts are expected to downgrade their full-year earnings forecasts for Greencool Technology Holdings after the refrigerant distributor reported a worse than expected first-half net profit.
Growth Enterprise Market-listed Greencool's interim net tumbled 51.2 per cent year on year to 71.75 million yuan (about HK$67.2 million) as turnover fell 13.7 per cent to 197.44 million yuan.
The firm's gross profit margin fell to 61 per cent from 80 per cent in the same period last year.
Chief executive Hu Xiaohui blamed the profit decline on 'unfavourable news since the end of last year, which severely hammered the group's reputation'.
'This also required our marketing staff [to make] stronger efforts and spend more time negotiating, reaching and closing contracts with clients,' he said.
Mainland-based Caijing magazine has questioned the firm's claims about the effectiveness of its products and the reliability of its financial statements. Greencool said some claims were inaccurate, but has not taken legal action against the magazine.