Shanghai, China — Chinese polyurethane leather maker Huafon Microfibre (Shanghai) estimates its 2017 annual net profit will be up 150%.
The company predicts net profit will be between CNY 251m ($40m) and CNY 282m.
'In 2017, the company's subsidiary in Qidong, Jiangsu province, started mass production for phase one of its 103m m3/year [industrial-use non-woven fabric microfibre leather] project. Its capacity utilisation has been rising,' said a performance statement in late January.
The project's first phase has 51m m3/year capacity. Ground was broken for the plant in 2015. Huafon Microfibre invested CNY 2.3bn in this phase. Huafon expects a profit of CNY 275m profit on CNY 1.6bn annual revenue from this investment.
'During the busy season we were running at full capacity and raised our production and sales volume for the year,' the statement added. 'The performance of our microfiber business significantly improved against the backdrop of rising raw material prices.'
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