Huasheng Shares (600156): Advance Loss Of RMB 176 Million To RMB 211 Million In 2022

Huasheng Shares (600156) announced on the evening of January 29 that the company expects to realize a net profit attributable to the owners of the parent company of - 176 million yuan to - 211 million yuan in 2022. During the reporting period, the net profit attributable to the owners of the parent company after deducting non recurring profits and losses was from -156.6 million yuan to -187.6 million yuan.

Main reasons for performance loss in advance

（1） In order to stop the source of loss in time and make room for the company's further long-term development, we took the initiative to stop production of the holding subsidiary Hunan Huasheng Dongting Linen Industry Co., Ltd., and the related expenses arising from the staff diversion and resettlement had a great impact on the current profits.

（2） Affected by the fluctuation of the capital market, the Company's shares of Xiangcai Shares were recognized as gains and losses from changes in fair value, resulting in profit losses in the current period.

（3） Affected by the epidemic, the company's production and operation are under great pressure. In particular, the printing and dyeing project invested and constructed by the holding subsidiary Hunan Huasheng Zhuzhou Cedar Co., Ltd. failed to reach the production capacity and efficiency on schedule, which has a certain impact on the company's profits.