Hefei, Anhui – Anli Material Technology predicts it could lose up to CNY921,000 ($133,000) in q1 2017, according to a company filing released in April.
This represents a sharp drop from its Q1 2016 net profit at CNY 9.2 million. ‘The demand in faux leather and downstream markets is depressed as China’s growth slows down,’ said the company filing.
‘Exports are sluggish as well, especially in Europe, due to reasons such as currency exchange rate changes,’ the company told UTECH-polyurethane.com.
A rise in coal and raw material prices is adding to Anli’s operating pressure. According to the filing, the prices for coal, PU resin and DMF jumped about 50% in 2016; fabric cost increased by up to 20%.
China’s tightened environmental regulation also raised the company’s expenses.