Why does Kechuang Xinyuan lose money?

Because:

1. In order to focus on the core strategy and optimize the allocation of resources, Kechuang Xinyuan Company transferred 32% equity of Guangdong Deruiyuan New Materials Technology Co., Ltd., the former holding subsidiary, on 202 1, which led to the change of the scope of the company's consolidated statements, and the company's operating income in the reporting period decreased by about 77 million yuan compared with the same period of last year.

2. In 2022, the external business environment of the company still faces many challenges, and geopolitical conflicts lead to high prices of energy and other commodities; Frequent domestic epidemics have led to a slowdown in customer demand; The company's main production and operation areas in East China and South China were seriously affected by the epidemic in the first half of the year, so the losses of Kechuang Xinyuan were more serious.