[ET Net News Agency, 25 July 2019] Tong Ren Tang Technologies Co. Ltd. (01666) said the
group is expected to record a decline in its net profit attributable to owners of the
company by approximately 10% to 15% for the six months ended 30 June 2019 as compared with
the corresponding period last year.
The major reasons for the estimated decrease in results are (i) with the further
deepening of the industrial layout adjustment, the company has begun the transition from
the current production capacity to new production capacity, and was confronted with
numerous challenges including but limited to insufficiency of original capacity and
underutilization of new capacity etc. The insufficiency of production capacity of
industrial units results in the decline of output volume and production value, which
directly leads to the decline in sales volume and in turn affects the sales revenue and
profit of the group; and ii) affected by macroeconomic and industry conditions, the Ejiao
product market is in the stage of adjustment and destocking. The company thus controlled
the production and output of Ejiao to actively reduced available inventory, which leads to
a further decline in the sales volume of Ejiao and thus affects the group's performance.
(RC)