Hefei, Anhui – Chinese PU leather maker Anli forecasts its unaudited H1 2019 net profit will be in the range CNY 16m ($2m) to CNY 21m. This compares with a CNY 13m net loss in H1 2018.
Sales during the first half of 2019 grew by 5% from H1 2017, according to an Anli announcement. ‘The company is seeing good results for its portfolio upgrades, with average product price up by 10% year on year,’ it said.
Anli explained it that it has improved procurement management. This enabled it to grow the gross profit margin by 2.7%, despite feedstock price fluctuations.
The company has also reduced energy costs by CNY 2m. This has been achieved by scheduling production better, and ensuring more equipment up time, the announcement said.
China has cut some taxes on companies in the half, and this also reduced costs by CNY 5m.
According to another announcement on 1 July, the company is injecting a further $12m into its Vietnam subsidiary. Smaller shareholders are adding $5m.
Following the investment, Anli (Vietnam) Material Technology will have $22m registered capital.
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