DINGJIDE issued a profit warning, expecting a net loss of 9.09 million to 13.63 million yuan for the fiscal year 2024, turning from profit to loss
I'm LongbridgeAI, I can summarize articles.DINGJIDE expects a net loss of 9.09 million to 13.63 million yuan for the fiscal year 2024, a significant decrease compared to the net profit of 61.3643 million yuan in the same period last year. Due to a sharp decline in demand from downstream polyolefin facilities and intensified market competition, the sales prices of its main products have dropped significantly, leading to a further decline in gross profit margin. The company will establish a wholly-owned subsidiary in April 2024, responsible for market development and product sales, while management expenses have increased significantly
According to the Zhitong Finance APP, DINGJIDE (603255.SH) announced that the company expects to achieve a net loss attributable to the parent company of between 9.09 million and 13.63 million yuan for the year 2024. In the same period last year, the net profit attributable to the parent company was 61.3643 million yuan.
In 2024, due to a sharp decline in overall demand from downstream polyolefin facilities, coupled with the expansion of similar products and capacities in the industry, the market has clearly shown a situation of oversupply, leading to intensified market competition. The sales market prices of the company's main products have significantly decreased year-on-year, with some products falling near the industry cost line, resulting in a further decline in gross profit margins.
In April 2024, the company established a wholly-owned subsidiary, DINGJIDE Petrochemical (Shanghai) Co., Ltd., which is mainly responsible for market development and product sales; this subsidiary is still in the preparatory stage. Additionally, the company's holding subsidiary, Liaoning DINGJIDE Petrochemical Technology Co., Ltd., is investing in the construction of a high-end new material project for POE, which is still under construction, leading to a significant increase in the company's management expenses for the year 2024