Rubber chemical maker China Sunsine Chemical reported on Monday that its third quarter net profit jumped 85 percent on-year to 143.4 million yuan on higher revenue and margins.
Revenue rose 22 percent on-year to 775.6 million yuan in the quarter ended 30 September on increases in both sales volume and average selling prices (ASP), it said in a filing to SGX after the market close on Monday.
Sales volume in the third quarter rose 9 percent on-year to 37,166 tons, while overall ASP increased 12 percent on-year to 20,706 a ton, it said. The gross profit margin rose to 32.7 percent in the quarter from 26.8 percent in the year-ago period, China Sunsine said.
“The increase in ASP was mainly due to the fixing of higher third quarter of 2018 quarterly prices with our bigger customers in advance in the second quarter of 2018 given the short supply of rubber chemicals in China during the past few quarters,” the company said.
But it noted that the ASP fell 11 percent on a quarter-on-quarter basis in the third quarter, mainly on a decrease in raw materials prices and weaker demand from domestic tire makers.
The sales volume of rubber chemical accelerators and anti-oxidant products rose by 5 percent and 32 percent on-year respectively in the quarter, largely as some rubber chemical producers which failed to pass environmental protection standards were forced to suspend production, leading to orders being switched to the company, China Sunsine said.
Net profit for the nine-month period rose 154 percent on-year to 532.6 million yuan, while revenue increase 35 percent on-year to 2.51 billion yuan, the company said.
Correction: This article has been updated to correct the spelling of the company’s name; it is China Sunsine.