[ET Net News Agency, 12 January 2022] Xinyang Maojian Group Limited (00362) said the
group is expected to record a significant improvement in the unaudited consolidated net
profit for the six months ended 31 December 2021 as compared to the unaudited consolidated
net loss for the previous corresponding period in 2020. The group will record a positive
net profit attributable to equity holders for the six months ended 31 December 2021.
Such turnaround mainly resulted from (i) the profit contribution from the resume of
production of Heihe Longjiang Chemical Group Limited to the group; and (ii) the gain on
forfeiture of the payment for the disposal of 40% equity interests in a subsidiary.
The production of Heihe Longjiang has been suspended since early 2019. Until early 2021,
there was a structural change in the calcium carbide market, while the introduction of
automation in the production processes and better formulation in the use of raw materials
have minimised wastage and enhanced efficiency for Heihe Longjiang's production. It has
officially resumed production since mid-2021 and started to contribute to the group's
profit. (RC)