China Sunsine Chemical warned Thursday it expected to report a “material decrease” in its third quarter net profit, compared with the year-ago period.
“The expected decrease in profit is mainly due to the decrease in average selling price (ASP) of the group’s products,” the company said in a filing to SGX.
“As disclosed in several of our prior results announcements, China’s economic growth is continuing to slow down, the raw material prices are hovering at lower levels, and as such, the group’s ASP for rubber chemicals is under pressure. This had resulted in lower revenue generated in the third quarter of 2019 compared to the third quarter of 2018,” China Sunsine added.
The warning is based on a preliminary assessment of the results, the filing said.
The results will be released on 7 November, the company said.