NBC's Parent Company Posts Highest Loss of $146 Million, First Loss Since IPO
- Chaileedo Press
- Jan 26, 2022
- 2 min read
Fujian Green Pine Co. Ltd. disclosed an announcement that the company expects a maximum pre-loss of $146 million in 2021, which will also be the first annual loss since the shares were listed. The loss of cosmetics business is the main reason for the loss of Fujian Green Pine Co. Ltd. performance.
On the evening of January 25, Fujian Green Pine Co. Ltd. disclosed an announcement that the company expects a maximum pre-loss of $146 million in 2021, which will also be the first annual loss since the shares were listed.
From the disclosed data, the revenue and net profit attributable to Fujian Green Pine Co. Ltd. in 2021 double decline. According to the data, Fujian Green Pine Co. Ltd. are expected to achieve revenue of $570 million to $601 million in 2021, down 6.85% to 1.68% year-on-year corresponding to a loss of attributable net profit of about $130 million to $146 million, down 277.95% to 299.65% year-on-year, turning from profit to loss. During the reporting period, Fujian Green Pine Co. Ltd. expects to report a net profit loss after deductions of $130 million to $146 million, down 281.74% to 303.8% year-on-year.
It is understood that Fujian Green Pine Co. Ltd. was listed on October 26, 2010. After the listing, Fujian Green Pine Shares were mainly engaged in the business of product development, production and sales in the turpentine deep processing industry for a long time. After completion of the acquisition of 90% shares of NBC in April 2019, Fujian Green Pine Co. Ltd. added the business of design, development and manufacturing of cosmetics such as facial masks, skincare products and wet wipes to its business segment. So far, the main business of Fujian Green Pine Co. Ltd. revolves around the above two segments.
The loss of the cosmetics business is the main reason for the loss of Fujian Green Pine Co. Ltd.'s performance.
Affected by fluctuations in commodity prices and tight upstream supply chains, the prices of major raw materials for cosmetics have been on a continuous upward trend resulting in higher production costs for the cosmetics business during the reporting period and putting greater pressure on product gross margins. As a result of the aforementioned factors, NBC, a wholly-owned subsidiary of the Fujian Green Pine Co. Ltd., is expected to achieve operating revenues of $380 million to $411 million during the reporting period, a year-on-year decrease. Its net operating profit (excluding the provision for impairment of long-term assets) is expected to be -$553.7 million to $0.0 million, a significant year-on-year decrease.
NBC is a professional cosmetic ODM manufacturer integrating R&D, design and manufacturing, mainly engaged in mask, skin care products and wet wipes business. It has over 50,000 square meters of GMP-standard plants and a professional R&D team of over 200 people, with a daily production capacity of over 6.5 million facial masks, 1.28 million skincare bottles and 40 million wet wipes.
In 2020, more than half of Fujian Green Pine Co. Ltd. profit will be contributed by NBS. The data show that NBS will achieve operating revenue of about $423 million in 2020, an operating profit of $52,753,500, a gross profit margin of 22.36%, and a net profit of $45,756,500 attributable to the owner's equity of NBC, including net profit of $43,688,000 included in the scope of the listed company's consolidated statement.
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