August 22 – Guangdong Weihua Corporation (002240) incurred a loss of 42.19 million yuan, down 316.42 percent year-on-year, reports securities times, citing a company filing. The firm blamed the loss on an increase in costs of administration and finance and a decrease in government subsidies and tax return.

The firm predicts that net profits for the first three quarters will fall by between 50 and 100 percent.

Weihua’s forestry business, which earned a gross profit margin of 70.97 percent, generated only 271,900 yuan in revenues.

According to some analysts, the fiberboard market is experiencing a surplus, posing difficulties for the firm as it tries to adjust its business structure.

Administration costs rose 33.11 percent on a yearly basis as two flooring companies were putinto operation in Hubei and Liaoning provinces. The firm borrowed more from banks for raw materials reserve, resulting in an increase in financing costs.