China Sunsine posts 18% decline in 4Q earnings to $21.9 mil on lower revenue

China Sunsine posts 18% decline in 4Q earnings to $21.9 mil on lower revenue

Stanislaus Jude Chan
28/02/19, 06:42 pm

SINGAPORE (Feb 28): China Sunsine Chemical Holdings has announced earnings of RMB 108.6 million ($21.9 million) for the 4Q18 ended December, 18% lower than RMB 132.0 million a year ago.

This brings full-year earnings to RMB 641.3 million for FY18, 88% higher than RMB 341.3 million a year ago.

4Q18 revenue fell 12% to RMB 770.1 million, from RMB 873.3 million a year ago, despite a 3% growth in sales volume during the quarter.

The decline was mainly due to lower overall ASP, which dropped by 15% to RMB 19,110 per ton in 4Q18, from RMB 22,384 per ton a year ago.

As at end December, cash and cash equivalents stood at RMB 1.03 billion.

China Sunsine has proposed a final dividend of 5.5 cents per share for the current period, more than double the dividend of 2.5 cents per share declared in 4Q17.

Moving forward, China Sunsine says it expects downward pressure on prices amid uncertain global economic and geopolitical conditions, as well as a slowing China economy.

“In spite of many challenges ahead, as a leading rubber chemicals producer, the group continues to focus on production technology and innovation through investment in R&D, to gain a competitive edge over other players,” says executive chairman Xu Cheng Qiu.

Xu adds that the group aims to grab more market share by expanding its production capacity gradually. The group is currently negotiating with the local government to purchase more land for its capacity expansion purposes.

“We remain cautious about the outlook of the group and are confident of our profitability in the next 12 months,” Xu says.

Shares in China Sunsine closed 2 cents lower, or down 1.5%, at $1.32 on Thursday.

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