HONG KONG—Sinomax, a HK-listed flexible foam company, with operations in China and the U.S., has warned that its after-tax profits could be about 66 percent lower in 2021 than in 2020.
The company said in a release to the Hong Kong Stock Exchange that the change was a result of significant increases in transport costs, raw materials prices and falling coronavirus subsidies.
It is likely that the after-tax profit for 2021 will be not less than $2.6 million, it said. In 2020, its after-tax profit was about $7.8 million
Sinomax stressed that these numbers have not been audited. It plans to publish full financial results for 2021 on March 25.