SINGAPORE (Aug 6): China Sunsine Chemical Holdings, the specialty rubber chemicals producer, reported 2Q19 earnings of RMB155.8 million ($30.6 million), down 35% from RMB239.7 million a year ago in 2Q18.

Revenue for 2Q19 fell 17% to RMB727.0 million from RMB880.6 million a year ago mainly due to the decrease in the overall ASP which was partially offset by the increase in sales volume. ASP in 2Q19 slid 29% to RMB16,633 per ton from RMB23,334 per ton in 2Q18 when there was a shortage of supply.

Despite this, China Sunsine continued to grow its sales volume. Total sales volume increased by 15% to 43,363 tons in 2Q19, a new record high, from 37,567 tons a year ago. This was due to the additional two production lines -- 10,000-ton high-end accelerator TBBS and 10,000-ton Insoluble Sulphur (IS) which started operations from January 2019 and December 2018, respectively.

Gross profit decreased 22% to RMB252.3 million in 2Q19 compared with RMB323.6 million in 2Q2018 due mainly to the decrease in ASP. Gross profit margin narrowed to 34.7% from the peak of 36.7% in 2Q18.

With the latest strong quarterly performance, China Sunsine’s earnings for 1H19 hit RMB265.9 million with revenue of RMB1.41 billion.

As at June 30, cash stands at RMB 1.17 billion with no bank borrowing while net assets per share amounted to RMB499.6 cents.

Further to the company’s announcements, the China Sunsine intends to set aside a piece of 300 land at Shanxian Chemical Zone (Land) to build a 60,000-ton per annum IS plant that will be carried out in two phases over the next few years.

Shares in China Sunsine closed flat at $1.07 on Tuesday.