SMM2, 5 Feb: recently, Yulong shares announced its 2017 performance forecast, expecting the company to realize the net profit attributable to the shareholders of the listed company in 2017, compared with the same period last year, and will turn a loss into a profit. The company's earnings are expected to range from 73.4698 million yuan to 81.3367 million yuan. This was an increase of 111 per cent over the same period last year and 113 per cent over the same period last year.

Performance for the same period last year

Net profit attributable to shareholders of a listed company:-640.3497 million yuan. Net profit attributable to shareholders of a listed company after deducting non-recurrent gains and losses:-340.4702 million yuan.

The main reasons for the pre-surplus of current performance

1. the preprofit of the company's performance is mainly due to the influence of non-operating profits. in order to further improve the company's asset structure and promote business transformation, the company disposed of some of the assets related to the steel pipe business in 2017. This asset disposal constitutes a major asset sale, in the absence of tax impact, the impact of the asset sale of non-recurrent profit and loss of about 67.79 million yuan. Other non-recurrent profit and loss impact amounts to about 10 million, mainly for government subsidies, financial returns and so on.

2. the influence of the comparison Base of the previous year in 2016, according to the market situation and the actual situation of the company, based on the principle of prudence, in accordance with the relevant provisions of the Accounting Standards for Enterprises, An impairment provision of 295.9794 million yuan was made for fixed assets with obvious signs of impairment; At the same time, the company handled 100 per cent of the shares of its five subsidiaries by public auction in the fourth quarter of 2016, and the transfer loss of the subsidiary's equity transfer after audit was-319.5732 million yuan. The above factors together lead to the loss of net profit attributable to the shareholders of the listed company in 2016.