Sailun Jinyu anticipates RMB 50 million loss in Q1 2017
The bottom line at China’s Sailun Jinyu Group Co Ltd took a hit in the first quarter of 2017. According to preliminary statistics provided by its financial department, the tyre maker anticipates a net loss attributable to shareholders in the vicinity of RMB 50 million (-£5.65 million). In the same three-month period a year earlier, the company reported a net profit of RMB 95.16 million (£10.76 million).
Upon announcing these preliminary first quarter results, Sailun Jinyu comments that a rise in raw material costs since the fourth quarter of 2016 has led to a significant decrease in gross margin for its products. The price increases the company has applied to its tyres have lagged behind these rising costs and haven’t sufficiently compensated for them.
Last year, Sailun Jinyu Group achieved full-year revenues of RMB 11.13 billion (£1.26 billion). This figure represents a 14.0 per cent increase on 2015 revenues. Net income jumped 87.5 per cent to RMB 362.25 million (£40.97 million).