Gronghui Group (603810.SH) announced a pre-reduction in its performance for the first half of 2023 on July 15. According to preliminary estimates by the financial department, the net profit attributed to shareholders of listed companies in the first half of 2023 is expected to decrease by 50 million yuan to 60 million yuan compared with the same period last year (statutory disclosure data), a decrease of 67.34% to 80.80% compared with the same period last year.
According to the preliminary calculation of the financial department, it is estimated that the net profit after deducting non-recurring profits and losses belonging to shareholders of listed companies in 2023 will decrease by 52 million yuan to 60 million yuan compared with the same period last year (statutory disclosure data), a decrease of 76.13% to 87.84% compared with the same period last year.
During the reporting period, it was affected by the insufficient demand for pesticides and a sharp decline in exports due to the high inventory of domestic and foreign downstream customers in the early digestion period; at the same time, the decline in product prices was higher than that of major raw materials, thus affecting the company's product gross profit margin. In addition, compared with the same period last year, the reporting period increased interest expenses on convertible bonds, which together led to a significant decline in the company's net profit. The company will further strengthen its marketing strategy and take measures such as reducing costs and increasing efficiency and optimizing personnel structure in order to enhance the competitiveness of enterprises.