Hefei, Anhui – Chinese faux PU leather Anli posted CNY16m ($2.3m) net profit in Q3 2018, ending the net losses the company has experienced since 2017.
Faux leather maker Anli turns profit in Q3; ups investment in Russia subsidiary
Over the first nine months of 2018, net profits were CNY 3.3m, compared with CNY 2.9m net loss over the first nine months of 2017. Revenue during the same period rose 13% to CNY 1.2bn.
The company's PU leather sales price in Q3 was up 8.5% year-on-year. Products with higher added value also accounted for a bigger share in sales, according to its quarterly report.
The company plans to break ground on its Vietnam plant by the end of 2018. In August, it announced $305,000 additional investment in its 51%-owned subsidiary Anli Rus. This figure includes $156,000 from Anli, and rest from the subsidiary’s other shareholders.
The investment will be used to improve operations at Anli Ru, and including an upgrade to technology at the facility.
The Russian leather maker and processor, set up in 2016 in Chekhovsky District, Moscow Oblast, has been in the red since 2017. It reported RUB 7.4m ($112,000) net loss in H1 2018 on RUB 89m revenue.
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