China Sunsine Chemical Holdings, the producer and global leader in the production and supply of rubber accelerators, is on its way to deliver record financial results for FY2010, judging from another robust third quarter performance.

For the three months ended 30 September 2010, net profit rose 35% to RMB 33.80 million ($6.58 million) from RMB 25.0 million in 3QFY2009, translating into earnings per share of RMB 7.07 cents compared with RMB 5.24 cents in 3QFY2009.

Revenue during the three month period rose 32% to RMB 267.1 million compared to RMB 201.7 million in 3QFY2009 due to strong demand for its products. Sales volume improved 24% to 14,585 tons as its production capacities kept up with the increased demand.

Furthermore, Average Selling Price (ASP) for all products increased to RMB 18,313 per ton in 3QFY2010 compared to RMB 16,066 in 3QFY2009. Besides the increase in demand for its products, the higher ASP was also partly due to increase in raw material price. The gross profit margin (GPM) increased from 22.1% in 3QFY2009 to 24.4% in 3QFY2010 as the increase in average cost is less than the increase in ASP.

During the quarter under review, despite the European debt crisis, export sales still delivered remarkable volume surpassing the 5,000 tons level. This was mainly due to strong sales to the Asia market (excluding China). Sales to the domestic market remain healthy at 9,269 tons despite the anticipated slowdown of the Chinese economy.

The group’s financial position remains strong. Total cash and notes amounted to RMB 193.3 million with net assets per share of RMB140 cents as at 30 September 2010.

Moving into the final quarter for FY2010, China Sunsine expects demand for its products to remain strong though the pace of growth might taper off along with the anticipated slowdown in the Chinese economy. However, the group is operating in the fastest growing automobile market. This creates sustainable demand in the new and replacement tires markets.