Hefei, Anhui — Anli, a synthetic PU leather maker, expects a CNY 20m ($3m) loss in 2017, compared with CNY 58m net profit in 2016.
Anli turns 2016 profit into net loss in 2017
Faux PU from the firm leather covered seats at the G20 in 2016. Credit: Anli
Revenue at the company grew in 2017 by 7.5% year on year to CNY 1.5bn, though, it said.
Last year prices of chemical feedstock and energy rose by up to 50%. Some raw materials were in short supply, said the announcement. The higher costs of complying with tougher regulations in China also hit profits.
With a third of its revenue from exports, Anli had about CNY 19m in currency exchange losses in 2017, the announcement added.
Nevertheless, the company strengthened R&D with an additional CNY 2m expenditure by last year.
The company also bought a 51% of Russian leather maker and processor for $2m in February 2017. The new subsidiary, Anli rus, was set up in 2016 in Chekhovsky District, Moscow Oblast.
Currency Conversion: Xe.com
