(Yicai Global) Oct. 28 -- Shares of Goertek slumped by the daily limit after the Chinese supplier of smart headsets for Apple and Android phone manufacturers said its 2022 net profit could decline as much as 5 percent due to a shrinking market.

Goertek's stock price [SHE: 002241] closed down 10 percent to CNY21.85 (USD3) today, the lowest since June 1, 2020. The Shandong province-based company's shares are down almost 60 percent so far this year.

The full-year net profit could range between CNY4.1 billion and CNY4.7 billion (USD567 million and USD650 million), meaning up to a 5 percent slump or a 10 percent increase because of a subdued macroeconomic and industrial environment, the manufacturer said in a statement yesterday.

However, Goertek's other smart hardware businesses, including virtual reality devices and game consoles, maintained healthy growth, it said. From January to September, revenue in the segment almost doubled to CNY43.6 billion (USD6 billion) from a year earlier. Besides headphones, Goertek has been developing other smart hardware since 2012, manufacturing VR and augmented reality devices and game consoles for other brands.

In the first three quarters, the company's net profit jumped by 15 percent to CNY3.8 billion from a year earlier while its revenue surged by 41 percent to CNY74.2 billion, according to data released yesterday. Both growth rates are significantly slower than those of a year ago.

It is true that the headset market was sluggish as such shipments in China fell 23 percent to 16.2 million units in the second quarter from a year ago due to weak growth in the true wireless stereo headset market, according to data previously disclosed by consultancy IDC.

Editor: Emmi Laine, Xiao Yi