Polyrocks(SH:688669)2025-01-17 09:55Financial Performance Expectations - The company expects a net profit attributable to shareholders of the parent company for 2024 to be between -144 million and -115.2 million RMB, indicating a significant loss compared to a profit of 28.58 million RMB in the same period last year [4][6]. - The net profit attributable to shareholders after deducting non-recurring gains and losses is projected to be between -150 million and -121.2 million RMB for 2024 [4]. - Significant losses are expected in Q4 2024, primarily due to increased R&D expenses from upgrading production lines and restructuring costs from layoffs at the subsidiary [8]. - The previous year's total profit was 37.32 million RMB, with a basic earnings per share of 0.24 RMB [6]. Market and Operational Challenges - The overall gross margin has declined due to weak market demand and intensified industry competition, leading to a decrease in sales prices for certain products [7]. - Increased costs in salaries, depreciation, and financing due to ongoing construction and business development of multiple industrial bases have negatively impacted financial performance [8]. - The company has faced heavy tax costs on liquefied petroleum gas products due to new consumption tax regulations [8]. Impairment and Goodwill - The company plans to recognize an impairment loss of approximately 16 million RMB for goodwill related to its subsidiary, Guangdong Guanzhen Technology Co., Ltd., due to continued operational difficulties in the protective clothing and breathable membrane sectors [8].