Hefei, Anhui – China’s Anli, which makes synthetic PU leather, posted CNY 3m ($455,000) net loss over the first nine months of 2017, compared with CNY 48m net profit during the same period in 2016.
The company’s revenue over the first three quarters rose by 7% to CNY 1.1bn, according to its Q3 report. Net cash flow declined by 62% to CNY 22m.
‘After over a decade’s rapid development, the PU faux leather sector, with excess capacity, has now entered a period of adjustment and integration,’ said the quarterly report.
Rising feedstock prices, currency exchange rate fluctuation and China’s intensifying environmental campaigns have all been stressing the company’s profitability, said the report.
Nevertheless, Anli has been strengthening its research and development capabilities, upping expenditure by CNY 4m during the first nine months.
Currency Conversion: Xe.com