[Caihua News] Harbin Electric (01133.HK) announced that it expects the company to record a net loss of approximately RMB 4 billion to RMB 4.5 billion attributable to parent company owners in fiscal year 2021 (same period last year: loss of RMB 7 million).

The main reasons for the company's performance loss in fiscal year 2021 were (i) affected by reduced demand and rising raw material prices in the traditional power generation equipment industry, product prices fell and costs increased, leading to an increase in the company's loss contracts and pending execution, and gross profit was drastically reduced compared to the previous year; (ii) overseas power plant engineering general contracting projects caused large losses; and (iii) the company deepened internal reforms, the retirees handed over social management, and one-time accrual of expenses for retirees, which led to a year-on-year increase in management expenses during the period.