Amway shares: Net profit in the first three quarters is expected to drop by 58.92%-72.61% year-on-year

On the evening of October 15, Amway shares released its earnings forecast. It is expected that the net profit attributable to shareholders of the listed company in the first three quarters of 2020 will be 21 million to 14 million yuan, a year-on-year decrease of 58.92% to 72.61%; the net profit attributable to shareholders of the listed company in the third quarter is expected to be 37.0499 million to 30.0499 million yuan, a year-on-year decrease of 8.96% to 12.25%.

Amway shares said that the company's water-based, solvent-free and TPU new processes and technologies are developing well, and the new markets and new momentum of electronic products, sports equipment, automotive interiors and engineering decoration are growing well. In the third quarter, the company had sufficient orders, and both production and sales were booming, showing a good trend.

Regarding the performance changes, it stated that during the reporting period, affected by the epidemic, the downstream demand of the global polyurethane synthetic leather industry declined, and the sales volume of the company's main leather products decreased by about 16.2% compared with the same period last year. However, in the third quarter, the sales volume and revenue of the company's main leather products increased by about 12.6% and 16.2% year-on-year in the third quarter of last year, respectively, and increased by about 94.2% and 88.6% respectively compared with the second quarter of this year. In the third quarter, the company produced at full capacity, and the monthly output and sales volume repeatedly hit historical highs. At the same time, the added value of the main products increased, and the average unit price and gross profit margin increased.

In addition, during the reporting period, subsidy income included in the current profit and loss was approximately RMB 11.6424 million, a decrease of RMB 16.8047 million from the same period last year.

In response to this, Amway actively transformed and upgraded, increased product innovation and market development efforts, increased the development and cooperation of high-quality brand customers, improved product technology content, upgraded market and customer structure, increased domestic and foreign brand customers and major customers, and expanded the sales proportion of high value-added products. A series of changes and innovations brought good effects. By the end of the reporting period, the company turned losses into profits, and the operating situation and trend were improving.