Nanjing Chemical Fibre (600889.SH) forecasts a pre-loss, with an estimated net loss of 393 million to 570 million yuan in 2024.

Nanjing Chemical Fibre (600889.SH) announced that the company expects to achieve a net loss of 3.93 billion to 5.7 billion yuan attributable to the shareholders of the listed company in the fiscal year 2024. The company reported a net loss of 1.85 billion yuan attributable to the shareholders of the listed company in the fiscal year 2023. The company's wholly-owned subsidiary, Nanjing Jinling Biobased Fibers Co., Ltd. (referred to as "Jinling Biobased") and its controlling subsidiary, Shanghai Yueke New Materials Co., Ltd. (referred to as "Shanghai Yueke"), reported operating losses in the year 2024. There are signs of impairment in the value of Jinling Biobased's fixed assets, construction in progress, and inventory, as well as Shanghai Yueke's fixed assets and construction in progress. In 2024, the overall market price of Lyocell fiber decreased, while the prices of the main raw material, imported wood pulp, rose slightly. Jinling Biobased's Lyocell fiber project had low production volume, high unit production consumption, unstable quality, and production costs exceeded selling prices, leading to a significant increase in operating losses compared to the previous year.