Gelonghui July 13丨Chuangyuan Culture (300703.SZ) disclosed the 2020 semi-annual performance forecast. The company expects net profit attributable to shareholders of listed companies from January to June 2020 to be 20 million yuan to 30 million yuan, an increase of 38.62%-59.08% over the previous year. The reason for the change in performance is:

1. During the reporting period, the company invested more in infrastructure to expand production capacity, leading to an increase in fixed costs; due to the impact of the novel coronavirus epidemic, the resumption of work by the company and upstream and downstream customers was delayed, and production capacity and sales in the first quarter of the reporting period were lower than the same period last year; the continued spread of the foreign epidemic in the second quarter affected the gross profit margin of the company's export business, leading to a decline in net profit attributable to shareholders of listed companies compared to the same period last year.

2. It is estimated that during the reporting period, the amount of non-recurring profit and loss affecting net profit will be about 7.5 million yuan to 8 million yuan, mainly government subsidies received.