2022 China Paint Industry Profits are Worrying Most of the Coating Enterprises Have Long Been in a Loss Situation!

A few days ago, the China Paint Association issued the notice "2022 China Paint Industry Profit Warning" through the public number. The China Paint Association pointed out that due to the rapid rise of raw material prices, most of the enterprises in China's paint industry have been in a loss-making situation. This is also the first time in China's coating industry, the association issued a notice of industry profit warning.

From the end of 2019 to the beginning of 2022, the global epidemic was rampant and the international political turmoil brought an unprecedented blow to the global economic development, during which the import and export trade was hampered and the prices of chemical bulk raw materials continued to rise high, bringing a huge impact to the Chinese coating industry which is in the middle of the end market and raw material market.

Through market research and analysis of coatings and upstream raw materials, it can be found that although the overall production and main business income of China's coatings industry was in positive growth in 2021, the growth rate of total profit was precipitously low since the beginning of the third quarter, and entered into negative growth at the beginning of the fourth quarter, and the total profit for the year was negative overall.

As of early March 2022, according to the latest research, most of the enterprises in China's coating industry have suffered losses due to the rapid rise in upstream raw material prices.

After a careful study, the China Paint Industry Association issued the first profit warning for China's paint industry in 2022, inviting enterprises in the industry to pay close attention to profits and other operating conditions, and to adjust their business strategies in a timely manner according to changes in upstream raw material market fluctuations.

The fact is indeed true, even more severe. It is understood that in 2021, affected by the massive "thunderstorm" in the real estate industry and the continuous rise of chemical raw material prices and other unfavorable factors, a number of listed paint companies have suffered losses in their 2021 performance forecasts, ranging from hundreds of millions of yuan to tens of millions of yuan.

Shandong Judong New Materials Co., Ltd. issued a price adjustment letter notice that due to the recent huge increase in the main raw materials for coatings, resulting in higher costs for the company's products.

In order to ensure the stability of product quality and provide quality product services, the company carefully considered the research decision, from March 10, 2022 onwards, some of the paint products according to the cost of different price increases by 5% - 30%.

Sanko (73.550, -0.15, -0.20%) expects a net loss attributable to shareholders of the listed company of 47,000 million yuan to 32,000 million yuan in 2021, down 193.67% from the same period of the previous year.

Keshun (12.180, 0.38, 3.22%) expects net profit of 63,000 million yuan to 80,000 million yuan, a decrease of 29.24% to 10.15%.

Ashoka (16.110, 0.74, 4.81%) expects a loss of 58,000 million yuan to 438 million yuan; while Karen (14.260, 0.27, 1.93%) expects net profit of 63 million yuan to 90 million yuan, a decline of 77.38% to 67.69%.

Chitai (6.620, 0.30, 4.75%) net profit was RMB 45 million to RMB 56 million, a decline of 60% to 50%.

Jinlitai (8.810, 0.07, 0.80%), on the other hand, reported a loss of 12,000 million yuan to 95 million yuan.

 Right now, the "Russia-Ukraine conflict" is getting more and more intense, the world economy is seriously affected. International crude oil prices are soaring, the supply of chemical raw materials is hampered, the financial market is wailing, and the stocks of major listed paint companies are in a plunge ...

In 2022, for the Chinese paint industry, the test may have just begun. We hope that all paint companies will ride the wave and keep the clouds open to see the moon.