(Yicai Global) Dec. 5 -- China’s Goertek cut its profit forecast for this year by as much as 60 percent, citing the loss of an order for a smart acoustic product from one of its major foreign clients. The order was for Apple’s second generation AirPods, according to analysts.

Net profit likely fell from 50 percent to 60 percent to between CNY1.7 billion and CNY2.1 billion (USD244 million and USD302 million) in the 12 months ending Dec. 31, Goertek said on Dec. 2. The firm earlier predicted that profit would gain or drop by between 5 percent either way.

The Shandong province-based company’s direct loss from the cancellation of the order was about CNY900 million (USD128.3 million), including direct profit reduction and factory shutdown losses, it noted.

After communicating with the overseas customer, Goertek also plans to increase the provision for asset impairment to recognize an inventory depreciation loss of between CNY700 million and CNY900 million and a fixed asset impairment loss of CNY400 million to CNY600 million.

Goertek’s shares [SHE: 002241] closed up 2.1 percent at CNY18.27 (USD2.62) each today, after slumping by as much as 5.6 percent in morning trading.

Editor: Futura Costaglione