Dehua TB expects lower 2024 profits amid asset impairments

Dehua TB New Decoration Material (SZSE:002043) projects a notable decrease in its 2024 net profit due to increased asset impairment provisions. The company estimates asset impairment losses of approximately CNY 427.92 million. Key factors include increased bad debt provisions stemming from real estate market challenges impacting subsidiary Qingdao Yufeng Hantang Wood Industry, and rising credit impairment losses. Additionally, Dehua's profit was impacted due to increased goodwill impairments. The company's preliminary fiscal data indicates CNY 9.197 billion in revenue, a 1.48% increase YOY, but net profit attributable to shareholders is expected to decline by 14.67% to CNY 588.27 million. The board of directors considers the impairment provisions reasonable.