KANGXIN NEW MATERIALS(SH:600076)2025-01-15 10:31Financial Performance Expectations - The company expects a net profit attributable to shareholders of -286 million yuan for the year 2024, indicating continued losses compared to the previous year [3]. - The expected net profit attributable to shareholders, after deducting non-recurring gains and losses, is projected to be -289 million yuan for 2024 [3]. - In the same period last year, the net profit attributable to shareholders was -297.1 million yuan, and the net profit after deducting non-recurring gains and losses was -300.9 million yuan [5]. - There are no significant uncertainties identified that could affect the accuracy of this earnings forecast [8]. - The forecast data is preliminary and the final financial data will be disclosed in the official 2024 annual report [9]. Reasons for Anticipated Loss - The primary reason for the anticipated loss in 2024 is the impact of the Red Sea crisis, which disrupted the balance of container shipping supply and demand, leading to prolonged shipping cycles and rising shipping prices [6]. - Despite a significant increase in sales volume of the company's main product, container flooring, the high cost of inventory and insufficient production capacity have hindered profit improvement [7]. - The company has been forced to outsource some production, resulting in lower profit margins that are insufficient to cover fixed depreciation and management costs [7]. - The environmental board industry is facing overcapacity issues, leading to underutilization of production capacity and further pressure on sales margins due to declining prices of civilian board products [7]. - The company has conducted impairment assessments on inventory and goodwill, resulting in the recognition of certain impairments during the reporting period [7].