Lianfa Shares (002394): Net Profit Of Half Year Is Expected To Decrease By 55% - 65%

Lianfa (002394) disclosed the semi annual performance forecast of 2021 in the evening of July 14. It is estimated that the net profit of the Company attributable to the shareholders of the listed company is expected to make a profit of 90.32 million yuan – 116.13 million yuan, a decrease of 55% - 65% year on year.

The main reasons are as follows: 1) the RMB exchange rate appreciated compared with the same period last year, and the price of raw materials such as cotton and additives increased, which led to the decrease of gross profit margin of orders of the company; 2) The non recurring profit and loss generated by the trading financial assets held by the company is about RMB 05 million, which is about RMB 196 million lower than that of the same period last year, and the net profit is reduced by about 147 million yuan.