Hubei Yihua forecasted a loss of more than RMB 4.4 billion for 2017 annual results
On the evening of January 30, 2018, Hubei Yihua disclosed the 2017 annual performance forecast. The company is expected to have a loss of 4.4 billion to 4.8 billion yuan. Regarding the reasons for the change in performance, the contents of the Hubei Yihua report indicated that Xinjiang Yihua Chemical Co., Ltd., an important subsidiary of the company, was ordered to suspend production for rectification due to a safety production accident, and the safety production license was revoked. The company's polyvinyl chloride, calcium carbide, urea, melamine, The shutdown of thermal power generation and related by-products equipment resulted in a total of RMB2.2-2.6 billion in major operating losses and asset impairment losses.
During the reporting period, the company and its subsidiaries Hunan Yihua Chemical Co., Ltd. and Hubei Xiangxi Chemical Co., Ltd. stopped production due to technological transformation, environmental protection and other reasons, resulting in operating losses and asset impairment losses.
During the reporting period, due to the supply of raw materials, the subsidiary Inner Mongolia Erdos United Chemical Co., Ltd. and its subsidiary Guizhou Yihua Chemical Co., Ltd. had restricted production or production suspension, resulting in operating losses and asset impairment losses.
During the reporting period, the prices of bulk raw materials such as phosphate ore, sulfur, and coal rose, resulting in higher production costs and lower profits.