Core Viewpoint - Nanjing Chemical Fiber Co., Ltd. is expected to report a significant net loss for the first half of 2025, with estimates ranging from RMB -98 million to -80 million for net profit attributable to shareholders [2][3]. Financial Performance Summary - The estimated net profit attributable to shareholders for the first half of 2025 is projected to be between RMB -98 million and -80 million [2][3]. - The estimated net profit attributable to shareholders after deducting non-recurring gains and losses is projected to be between RMB -102 million and -84 million [2][3]. - In the same period last year, the total profit was RMB -77.22 million, and the net profit attributable to shareholders was RMB -69.98 million, with a per-share loss of RMB -0.19 [2]. Reasons for Performance Decline - The company conducted impairment tests on inventory related to Lyocell fiber pulp and viscose short fibers, leading to increased operating losses due to asset impairment provisions [2][3]. - The depreciation of fixed assets increased significantly compared to the previous year due to the completion of construction projects at a wholly-owned subsidiary, Nanjing Jinling Biobased Fiber Co., Ltd. [2][3]. - Although the sales volume of PET foaming products increased significantly at the controlling subsidiary, Shanghai Yueke New Materials Co., Ltd., the sales prices declined due to industry competition, resulting in a narrower operating loss despite initial improvements in gross margin through cost reduction measures [2][3].

Group 1 - The company plans to apply for a comprehensive credit limit not exceeding RMB 200 million to meet operational funding needs and optimize financing allocation [1] - The specific credit amount will depend on the actual approval from financial institutions and the company's operational requirements [1] - The board of directors has authorized the management to handle various financing activities within the approved credit limit [1] Group 2 - The company announced the provision for asset impairment due to significant declines in the prices of key raw materials and underperformance of certain subsidiaries [3][5] - The total impact on net profit from the impairment provisions is estimated to be RMB 22.68 million, affecting the equity attributable to shareholders by RMB 22.48 million [4][5] - The board and supervisory committee have approved the asset impairment provisions, ensuring compliance with accounting standards [6][8] Group 3 - The company intends to hire Zhongxinghua Accounting Firm for the 2025 financial report and internal control audit, replacing the previous auditor Tianzhi International [11][12] - The change in auditors is due to the regulations regarding the selection of auditors for state-owned enterprises and listed companies [12][21] - The new auditor has a strong background in auditing listed companies and has no conflicts of interest [18][19] Group 4 - The company plans to provide guarantees for its subsidiaries, with a total guarantee amount not exceeding RMB 110.74 million for 2025 [39][41] - The guarantees are intended to support the subsidiaries' operational funding needs and are subject to shareholder approval [40][42] - The board believes that the guarantees are necessary for the subsidiaries' business operations and do not harm the interests of the company or its shareholders [54][55]