Hefei, Anhui – Chinese polyurethane leather maker Anli forecasts its unaudited 2019 net profit will range from CNY 69m ($10m) to CNY 76m. This would be an increase of 200–230% compared with 2018.
Revenue during the year rose by 1.4% to CNY 1.7bn. Sales from its main product, PU leather, grew by 2.6% year on year, according to the company’s statement in January. The average price of this product increased by 4.6% from 2018; gross profit margin rose 2%.
The company said it increased the share of high value-added products in its portfolio, and adjusted its customer structure in 2019. Procurement management also achieved good results amid fluctuating feedstock and energy prices throughout the year.
In 2019, the company spent CNY 86m on R&D, up 5% from 2018.
By October its majority-owned Vietnam subsidiary had received $5m capital, out of a planned $17m. This came from Anli and smaller shareholders. The subsidiary’s 12,000 km/year PU leather plant is scheduled to come on stream in April 2020.
Anli also announced in November that it has become a Tier 1 supplier to Decathlon, the French sporting goods retailer. Decathlon has 1,352 outlets around the world, including 267 in Greater China.
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