Lianhetech Holding Limited (Lianhetech) released its H1 2019 financial figures, expecting the net profit to increase by 4,100-4,400% year on year to USD34.5-37.0 million. In H1 2018, the company only made net profit of USD0.8 million, impacted by the environmental inspection.
Here is the keys to such a change.
1. Lianhetech continued to maintain close cooperation with core clients and the prices of some self-produced and self-marketed products increased.
2. The subsidiaries Jiangsu Lianhe Chemical Technology Co., Ltd. and Lianhetech (Yancheng) Co., Ltd. still suspended production because of the “3·21” explosion accident. The sales activities were dependent on the inventories. Whether they can restore production in H2 2019 remains to be seen.
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