Kangxin New Materials (600076.SH) issues a preliminary announcement of expected losses, forecasting a net loss of 286 million yuan for the fiscal year 2024.

Kangxin New Materials (600076.SH) announced that the company is expected to incur a net loss of 286 million yuan attributable to shareholders of the listed company in 2024, and the company will continue to incur losses compared to the same period last year. In 2024, the domestic container market has shown a significant recovery trend since the second quarter of 2024 due to various factors such as the disruption of container shipping supply and demand balance by the Red Sea crisis, longer shipping cycles, continuous increase in shipping prices, and increased willingness of shipowners to fill containers. The sales volume of the company's main product, container flooring, has increased significantly compared to the same period last year. However, the cost of the company's inventory of container panels remains high and the company's corresponding production capacity is insufficient. Some products are outsourced to other companies for processing, resulting in thin profits that are not enough to cover the company's fixed depreciation amortization costs and management expenses, thus failing to significantly increase profits. Additionally, the environmental protection board industry is mainly affected by industry overcapacity, leading to the company not operating at full capacity and unable to spread out fixed costs. The continuous decrease in selling prices of civilian board products further reduces sales gross profit. Furthermore, the company has conducted impairment assessments on inventory and goodwill during the reporting period, recognizing some impairments, resulting in an expected loss in financial performance for the reporting period.