On April 15, Xiangyang Bearing announced performance forecast, the company expects net profit attributable to shareholders of listed companies from January to March 2016 will be -6.2 million yuan, a year-on-year decrease of 56.23%, which constitutes a bearish price for the company's shares, and an average net profit for auto parts industry. The growth rate is -12.72%.
The company said that the change in performance during the reporting period was mainly due to the impact of weak demand in the domestic commercial vehicle market, and the parent company’s operating income decreased year-on-year; at the same time, the parent company’s investment in construction of new industrial parks was gradually transferred to the “one river and two banks†production factors. With the increase in related fixed costs and expenses, the gross profit margin of product sales has decreased.
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