Shares of Shenzhen Dynanonic Decline
Shenzhen Dynanonic, a Chinese chemicals company, experienced a drop in its shares during early trading following the announcement of an expected first-half loss. The company cited lower lithium salt prices and a decrease in demand as the primary factors contributing to their anticipated financial decline.
In a recent statement, Shenzhen Dynanonic revealed that it predicts a net loss ranging from 1.04 billion yuan to 1.17 billion yuan ($145.6 million-$163.8 million) for the first six months of the year. This is in stark contrast to the net profit of 1.28 billion yuan achieved during the same period last year.
As a result of this news, shares in Shenzhen Dynanonic fell by 13.5% to CNY113.88 early Monday. The company has already endured year-to-date losses totaling 21%.
Impact of Lower Lithium Salt Prices
The decline in sales revenue for Shenzhen Dynanonic was primarily due to the significant decrease in lithium salt prices. Additionally, the company faced pressure from accumulated stocks of raw materials, purchased at higher prices, further impacting profitability.
About Shenzhen Dynanomic
Shenzhen Dynanomic specializes in the development, manufacturing, and sale of nano-scale lithium-ion battery materials and related products.