Chongqing Sifang New Material 2022 Performance Forecast

2023, Chongqing Sifang New Material Co., Ltd. issued a performance forecast for 2022.

The report shows that the net profit attributable to shareholders of listed companies is expected to be-87.4836 million yuan to-0.74 million yuan 13065 in 2022. It is estimated that in 2022, the Company will realize an operating income of approximately RMB0.09 million 165453, representing a year-on-year change of 22.54%, and realize a net profit of -93.8338 million after deduction of non-recurring gains and losses attributable to the shareholders of the Company. To -140,141,500 yuan. According to the analysis

of Sifang New Material, the main reasons for the loss of this performance are:

(1) The market situation

is affected by the decline of the real estate industry in Chongqing. From January to November 2022, the new construction area of real estate declined by 54.9%, combined with the impact of epidemic, high temperature and power rationing. As a result, the demand for commercial concrete products in Chongqing has been greatly reduced. Although the company has expanded its production and operation scale and increased its market share through mergers and acquisitions, the decline in market demand has made the company's overall sales volume and sales price less than expected.

Product prices and costs

Affected by market conditions, the demand for commercial concrete decreased significantly, resulting in intensified competition in the industry, which in turn led to a decline in the price of commercial concrete compared with last year. According to the data of Chongqing Construction Cost Information Network, from January to November 2022, the average unit price of commercial concrete (C30 specification) in Chongqing was 392.27 yuan/cubic meter, which was 38.18 yuan/cubic meter lower than that of the same period last year. At the same time, the rising price of diesel oil has increased transportation costs, further reduced profit margins, and adversely affected the company's gross profit margin and net profit in 2022.

Credit impairment losses The business scale of the Company increased and the market share increased. However, due to factors such as insufficient liquidity of funds of downstream real estate development enterprises, while the scale of accounts receivable increased, the recovery of some accounts receivable and the payment of notes receivable were delayed compared with previous years, and the amount of provision for credit impairment losses increased accordingly. Impairment losses on

assets In 2022, affected by the decline in market demand, the production and operation results of Chongqing Guangcheng Building Materials Co., Ltd. and Chongqing Xinke New Building Materials Co., Ltd., which were acquired by the Company, did not meet expectations, and there were signs of impairment of assets and goodwill, resulting in corresponding provision for impairment losses.