Lianfa Shares (002394): Net Profit In 2021 Will Decrease By 57.50% - 68.13%

Lianfa shares (002394. SZ) disclosed the performance forecast of 2021 on the evening of January 26. It is estimated that the net profit attributable to shareholders of listed companies will be about 150 million yuan – 200 million yuan in 2021, with a year-on-year decrease of 57.50% - 68.13%; It is estimated that the net profit after deducting non recurring profit and loss in 2021 will be about 130 million yuan – 180 million yuan, with a year-on-year decrease of 21.56% - 43.35%.

During the reporting period, the main reasons for the decline of performance are as follows: 1) the RMB exchange rate appreciated compared with the same period last year; 2) As the price of raw materials such as cotton, coal and additives increased, the company's gross profit margin of orders decreased; 3) The non recurring profit and loss generated by the trading financial assets held by the company was about RMB 02 million, decreased by about 286 million compared with the same period last year, and the net profit decreased by about 214 million yuan.