Zhitong Financial APP News, Songfa shares (603268.SH) issued an announcement that it is expected to achieve a net loss of 37.5 million yuan to 43.8 million yuan for shareholders belonging to listed companies in 2023, and a loss of 38.3 million yuan to 44.6 million yuan for shareholders belonging to listed companies after deducting non-recurring profits and losses.

The main reasons for the pre-loss of the current performance are as follows: (1) the decline in business income in the first half of the year due to the economic downturn and shrinking demand at home and abroad; (2) the increase in the total cost of amortization of products per unit of underutilization of production capacity; the decrease of gross profit; and (3) the decrease of gross profit due to the treatment of some long-aged inventory products at the beginning of the year.