SINOPEC KANTONS (00934) shares fell over 6% following a profit warning, trading 5.82% lower at HK$3.56 as of press time, with a turnover of HK$12.08 million.

The company issued a profit alert, projecting a 25%-35% decline in mid-term net profit attributable to shareholders year-on-year. The drop is mainly due to escalating tensions in the Middle East, which severely impeded navigation through the Strait of Hormuz, directly impacting the global oil market structure and affecting both the group's domestic and international storage and terminal operations, as well as profit contributions from subsidiaries.

Additionally, Rizhao Shihua has entered liquidation proceedings, resulting in a significant year-on-year drop in its throughput and the investment income it contributes to the group. Public records show that SINOPEC KANTONS is the only red-chip subsidiary of China Petroleum & Chemical Corporation (Sinopec) listed in Hong Kong, and together with its subsidiaries, primarily provides crude oil terminal services. The group's joint ventures and associates are mainly engaged in operating crude oil and petroleum product terminals and related facilities, and providing logistics services including storage, transportation, and terminal operations.