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
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.
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