Fuyao Glass Group experienced a drop in profit in the first half of 2017, according to the company’s latest financial statement. On a year-over-year basis, profits declined by 5.9 percent, or $253.7 million USD (1.69 billion yuan). During the same six-month period in 2016, the company reported an increase of 35 percent.
The company says the decrease is largely due to an exchange loss of the Chinese yuan, which appreciated in the beginning of the year. The report notes that the yuan strengthened by 2.34 percent in H1, increasing the cost of exporting. Around 35 percent of the company’s revenue stems from its overseas facility, according to the Chinese news source Xinhua.
According to the report, had the yuan not appreciated, the company’s profit would have seen an uptick of 17.9 percent.
Despite the drop in profit, revenue was up 14.9 percent for the six-month period. Revenue from overseas experienced an increase of 17.8 percent, while domestic revenue was up 11.8 percent.