Xinxiang Chemical Fiber: net profit expected to decline 99% Y-O-Y in H1 2022

Xinxiang Chemical Fiber issued a performance forecast on the evening of July 13, with an estimated net profit of 8-10.5 million yuan in the first half of 2022, down 98.6% from the same period of last year. Compared with the corresponding period of last year, spandex, major product of Xinxiang Chemical Fiber, was weak in the reporting period, with substantially decreasing prices; although the prices of major raw materials were also descending, the average price was still significantly higher on annual basis in the first half of the year, resulting into increasing costs. The gross profit of spandex products decreased, and the company's operating performance is expected to decline dramatically compared with the same period last year.