The board of Sailun Jinyu Group announced that they predict the operating loss in the first may be 50 million yuan.
The loss was mainly due to the product sales price growing slower and later than raw material costs.
The costs of major tire raw materials started to grow since the final quarter of 2016, thus greatly cut the gross profit margin of Sailun Jinyu’s tire products.
Sailun Jinyu released its financial results for 2016 earlier.
Its operating revenue and net profit attributable to shareholders of the listed company were 11.13 billion yuan and 362 million yuan, respectively.
