Jingxing Paper's net profit in 2018 or the maximum decrease of 18.84 million yuan

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Lead: Recently, Jingxing Paper released a supplementary explanation for the 2018 annual performance forecast amendment announcement. After preliminary calculations, the company's financial department is expected to confirm an investment loss of approximately 17.02 million yuan to 18.84 million yuan in the fourth quarter, which is expected to reduce the company's fourth quarter net profit of 17.02 million yuan to 18.84 million yuan.

Jingxing Paper: It is estimated that net profit in the fourth quarter of 2018 will decrease by 1702 to 18.84 million yuan.

Zhejiang Jingxing Paper Co., Ltd. (hereinafter referred to as the “Company”) disclosed the “Financial Announcement of 2018 Annual Results Announcement” on January 31, 2019. The company expects the net profit attributable to shareholders of listed companies from January to December 2018. From 100 million to 380 million, the year-on-year change was -48.28% to -40.45%.

On February 20, Jingxing Paper released a supplementary explanation for the revision of the 2018 Annual Results Announcement. The company stated that as of December 31, 2018, the company held Zhejiang Shapu Aisi Pharmaceutical Co., Ltd. (hereinafter referred to as “ SF's 9.06% stake is accounted for by the equity method of the investment company, which is to confirm the net profit of Shapu Aisi as investment income according to the company's shareholding ratio.

In the first three quarters of 2018, Shapu Aisi realized a net profit of RMB 77,924,400 belonging to the shareholders of the listed company. The company confirmed the investment income of RMB 7,432,800 in the first three quarters of 2018 according to the shareholding ratio. On January 31, 2019, Shapu Aisi issued the "2016 Annual Results Pre-Loss Announcement", due to the loss of its subsidiary's strong-selling pharmaceuticals in the current period, the relevant performance commitments were not completed, and the business formed during the acquisition of the strong pharmaceutical industry. The reputation shows signs of impairment and it is estimated that the impairment loss of goodwill will be 178 million yuan. It is expected that the annual net profit attributable to shareholders of listed companies in 2018 will be lower than the same period of the previous year (statutory disclosure data), and the net profit attributable to shareholders of listed companies will be -130 million yuan to -110 million yuan.

According to the equity method accounting principle, Jingxing Paper's finance department has estimated that it will be affected by the shareholding ratio in the fourth quarter. The investment loss will be confirmed to be about 17.02 million yuan to 18.84 million yuan, which is expected to reduce the company's fourth. The quarterly net profit was 17.02 million yuan to 18.84 million yuan, which had a greater impact on the company's fourth quarter results.

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