Summary: In July 2024, a number of coating enterprises released H1 2024 performance forecasts; specifically, net profits of Jiangsu Kuangshun, Keshun Waterproof, and Kinlita are predicted to grow YoY while Asia Cuanon expected net losses.

On 18 July, 2024, Jiangsu Kuangshun Photosensitivity New Material Stock Co., Ltd. (Jiangsu Kuangshun) released its H1 2024 performance estimation, showing that net profits attributed to shareholders of the listed company are anticipated to reach USD3.51 million–USD4.91 million (RMB25.00 million–RMB35.00 million), up by 25.69%–75.96% YoY.

Jiangsu Kuangshun stated that its performance will improve mainly because the company increased efforts to actively develop market application of photovoltaic adhesive, automotive coatings, functional film materials and metal packaging coatings and other new products on the basis of ensuring stable business of photoresist and consumer electronic coatings, strengthened R&D and upgrading of products, optimised the product structure, improved the overall profitability, and ensured stable growth of overall income.

On 15 July, Keshun Waterproof Technologies Co., Ltd. (Keshun Waterproof) released a performance forecast, expecting net profits attributed to shareholders of the listed company to grow by 32.00%–98.01% YoY to USD11.23 million–USD16.84 million (RMB80.00 million–RMB120.00 million) in Jan.–June 2024.

Keshun Waterproof said that its net profits will increase YoY mainly because during the reporting period, the company actively explored the market and continued to enhance market competitiveness; in addition, the company continued to optimise product structure and improve management efficiency, thus pushing up gross profit margins and earning capacity.

On 15 July, Asia Cuanon Technology (Shanghai) Co., Ltd. (Asia Cuanon) disclosed its performance estimation for H1 2024. Net profits attributed to shareholders of the listed company are predicted to drop by 138.26%–158.66% YoY to -USD3.23 million–-USD2.10 million (-RMB23.00 million–-RMB15.00 million).

Asia Cuanon said that it expected net losses during the reporting period as the start of construction projects and construction progress slowed down due to the impact of the general environment while the company further strengthened the prevention and control of business risks. As a result, the company's operating income and gross profit margins declined in H1 2024.

On 8 July, Shanghai Kinlita Chemical Co., Ltd. (Kinlita) announced its H1 2024 performance forecast. Net profits attributed to shareholders of the listed company are expected to surge by 1,232%–1,770% YoY to USD1.47 million–USD2.17 million (RMB10.50 million–RMB15.50 million), turning losses into gains.

Kinlita said that its net profits will rise YoY because in H1 2024, its main products can cover other subdivided areas of automotive and industrial coatings; the company actively developed new customers and improved market layout; at the same time, the company continued to promote the optimisation of the customer structure, product structure adjustment and product upgrading. As a result, the company's product competitiveness and earning capacity significantly improved.