Sifang New Material: Net Profit Loss of 7.16 Million to 10.74 Million in the First Half of the Year!

On July 15, Chongqing Sifang New Material Co., Ltd. issued a performance forecast for the first half of 2023.

The announcement shows that the net profit attributable to shareholders of listed companies is expected to be-7.16 million yuan to-10.74 million yuan in the first half of 2023, which will be a loss compared with the same period last year. The reasons for the loss of this performance forecast analyzed in the

announcement are as follows:

(1) Market demand

data from the National Bureau of Statistics show that from January to May 2023, the new construction area of real estate in Chongqing declined by 10.50%. Affected by the decline of the real estate industry in Chongqing, the demand for commercial concrete products is insufficient, the market is still in a state of oversupply, fierce competition leads to difficulties in expanding the sales market, the company through mergers and acquisitions to maintain the growth of the company's product sales. Sales prices

of

products Affected by insufficient market demand, the competition in the commercial concrete industry, the main product, intensified, which led to a continued decline in sales prices compared with last year. According to the data of Chongqing Construction Cost Information Network, from January to May 2023, the average unit price of commercial concrete (C30 specification) in Chongqing was 346 yuan/cubic meter, which was 62 yuan/cubic meter lower than that of the same period last year, resulting in a decline in the sales price of commercial concrete. It has a great impact on the gross profit rate and net profit of the company in the first half of 2023.

Credit impairment losses With the increase of the Company's business scale and market share, the Company's revenue increased significantly year-on-year. At the same time, due to the lack of liquidity of downstream construction units and other factors, the scale of the Company's accounts receivable increased, and the amount of provision for credit impairment losses increased as compared with the same period last year. It has a negative impact on the company's net profit in the first half of 2023.