North Industries Group Red Arrow (000519.SZ) expects to incur a pre-loss with an estimated net loss of 210 million to 350 million yuan in 2024, turning from profit to loss year-on-year.

North Industries Group Red Arrow (000519.SZ) released its performance forecast for 2024, expecting a net loss attributable to shareholders of the listed company of 210 million to 350 million yuan for the full year, turning from a profit to a loss compared to the previous year. The main reasons for the changes in the company's operating performance during the reporting period are as follows: First, the intensification of competition in the superhard materials sector led to a significant decrease in sales prices of the main products in the first three quarters, with a stabilization in the fourth quarter, resulting in a substantial year-on-year decline in revenue and net profit for the superhard materials sector; Second, some special equipment products were affected by customer policies, product technology status, and factors such as supply of components, with some clearly defined demand not generating revenue during the reporting period due to late contract signings or non-signings. However, fixed expenses such as depreciation of plants and machinery still occurred as normal, leading to a substantial year-on-year decline in revenue and net profit for the special equipment sector.