SINGAPORE (July 27): China Sunsine Chemical Holdings, the producer and supplier of rubber accelerators, reported a 52% rise in 2Q17 earnings ended June to RMB92.9 million ($18.7 million).

This brings group earnings for the 1H17 ended June to RMB131.7 million as compared with RMB82.6 million in 1H16.

Group revenue in 2Q17 increased by 34% to RMB656.2 million compared to RMB491.1 million in 2Q16, mainly due to the increase in average selling price (ASP). ASP in 2Q17 increased by 33% to RMB18,904 per ton compared to RMB14,193 per ton in 2Q16.

On a q-o-q comparison, the ASP also increased by 9% as compared to the ASP of RMB17,300 per ton in 1Q17. Total sales volume increased moderately from 34,483 tons in 2Q16 to 34,558 tons in 2Q17. The overall gross profit margin improved to 28.5% in 2Q17 from 27.3% in 2Q16, mainly due to the increase in ASP.

During the quarter, sales volumes for Accelerators increased by 5% to 21,334 tons as compared to 20,222 tons in 2Q16. However, the sales volume for Insoluble Sulphur (IS) and Anti-oxidant decreased by 6% and 7% respectively, mainly due to the decreased demand from domestic tyre manufacturers, as their utilisation rate decreased due to decreased rubber price.

China Sunsine says it remains cautiously optimistic of its performance in the next 12 months.

The counter closed 5 cents at 88 cents on Thursday.