On March 14, 2024, comprehensive media reported that China First Heavy Machinery Co., Ltd. disclosed in its response to the Shanghai Stock Exchange's regulatory work letter on the company's performance forecast:
Indonesia Delong is expected to have a net profit of approximately negative 1.8-22 billion yuan in 2023. The listed company indirectly holds 23% of the equity in Indonesia Delong, and based on the shareholding ratio, it is expected to recognize an investment loss of approximately 400-50 million yuan.
In the case of oversupply in the market, nickel iron has shifted from a seller's market to a buyer's market. In order to ensure the flow of funds back, various enterprises are eager to sell at low prices, further reducing the price of nickel.
From the perspective of nickel iron market prices, the overall nickel iron prices in 2023 are in a stepwise downward trend, showing a trend of high opening and low closing. Due to a significant increase in Indonesian supply and sustained weakness in domestic demand, nickel iron prices have dropped significantly since March 2023, and have continued to show a cliff like decline since October 2023.
The average market price of Indonesian high nickel pig iron to port, including taxes, has dropped rapidly from 1360 yuan/nickel point at the beginning of the year to 1160 yuan/nickel point at the end of the third quarter. The nickel iron market price has dropped rapidly in the fourth quarter, dropping to 915 yuan/nickel point at the end of the fourth quarter, with a decrease of 21.12% during the fourth quarter and a decrease of 32.72% for the whole year, resulting in a significant decrease in corresponding sales revenue.
Affected by price fluctuations throughout the year, revenue decreased by approximately 1.8-1.9 billion yuan.