Red Avenue New Materials: Net profit is expected to increase by 20.55% to 36.16% year-on-year in 2020

On January 4, Tongcheng New Materials released its 2020 annual performance forecast, saying that the company's annual net profit in 2020 is expected to be 386 million yuan to 436 million yuan. Compared with the same period last year (statutory disclosure data), it is expected to increase by 65.8 million yuan to 115.8 million yuan, a year-on-year increase of 20.55% to 36.16%.

It is estimated that the net profit attributable to shareholders of the listed company in 2020 will be between 380 million yuan and 422 million yuan, which will increase by 49.36 million yuan to 91.36 million yuan compared with the same period last year (statutory disclosure data), a year-on-year increase of 14.93% to 27.63%.

It is estimated that the net profit attributable to shareholders of the listed company in 2020 after deducting non-recurring gains and losses will be between 368 million yuan and 418 million yuan, which will increase by 73.78 million yuan to 123.78 million yuan compared with the same period last year (statutory disclosure data), a year-on-year increase of 25.08% to 42.07%.

Tongcheng New Materials said that in 2019, the company had made provisions for an impairment loss of 122 million yuan in Xiangshui assets. After a reasonable estimate of the Xiangshui matter in 2020, the impact on profits is expected to be less than last year. In 2020, the net profit of the company's equity-holding companies increased, and the company's investment income increased.

It is understood that in recent years, Tongcheng New Materials has continued to follow the strategic direction of "one body and two wings", optimizing the industrial chain layout through endogenous growth and external development, and accelerating the business layout of electronic chemicals and environmentally friendly materials. On June 11, 2020, the company established a wholly-owned subsidiary, Shanghai Tongcheng Electronic Materials Co., Ltd., and acquired a 33.7% stake in Beijing Kehua Microelectronic Materials Co., Ltd.