Hefei, Anhui – Anli, a PU leather maker in China, expects at least CNY 19m ($2.8m) net profit in 2018, compared with CNY 17m net loss in 2017.
Chinese PU leather maker Anli turns profit in 2018
Revenue in 2018 increased by 12.5% from 2017 to CNY 1.7bn, the company said in an announcement.
Sales volume of synthetic PU leather grew by 10% year on year to nearly 6700 km. Average selling prices were up by 6% from 2017, thanks to an adjustment in its portfolio that means it now includes more high value added products, the announcement said.
The 2018 average price is also 9% higher than price at the beginning of the year, it added.
Anli spent CNY 83m on R&D last year, roughly the same as the previous year.
The company had extra costs in 2018 as a result of tightened environmental regulations, but there was also an increase in government subsidies.
Anli has acquired a Russian competitor, and set up a Vietnamese subsidiary to build a new plant in the country.
Last August, Anli brought new investors in to the Vietnamese business, including Japanese synthetic leather maker Shima and Beijing Futai Leather Base Fabric. This raised the subsidiary’s registered capital to $5m, and reduced its own stake from 100% to 60%.
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