On January 31st, Shun Hao Corporation announced their 2022 annual performance forecast which anticipates a net profit loss of 45 to 60 million yuan for the company's shareholders, compared to a loss of 28.29 million yuan during the same period last year, representing a YoY increase in losses. The operating revenue is expected to be between 1.42 to 1.5 billion yuan, lower than the revenue of 1.55 billion yuan during the same period last year.
According to the announcement, it is expected that the net profit after excluding non-recurring expenses and gains for the year 2022 will suffer a loss of between RMB 41.5 million and 55 million, compared to a loss of RMB 34.03 million in the same period last year.
The reasons for the change in performance are stated in the announcement as follows:
During the reporting period, the company's production base located in Shanghai was impacted by the domestic epidemic, which caused some disruptions in raw material procurement, order production, and delivery. As a result, the company's overall revenue slightly decreased.
During the reporting period, the company made strategic adjustments to its business in accordance with industry policies. As a result, certain assets were no longer generating expected economic benefits for the business. Accordingly, the company was required to make a provision for impairment of relevant equipment and inventory in accordance with accounting standards.
During the reporting period, the company continued its strategic positioning and invested in new tobacco and industrial hemp businesses in overseas markets. This resulted in an increase in related expenses compared to the same period last year.
It is understood that Shunhao Group's main industry is environmentally-friendly packaging materials, with supplementary products in new tobacco and industrial hemp. Their products are sold in countries and regions such as China, North America, South America, Pakistan, Europe, Singapore, Indonesia, South Korea, Japan, and Thailand.
Reference:
Shanghai Shunhao New Materials Technology Co., Ltd. issues 2022 earnings forecast.
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