Jiutian Chemical Group recorded earnings for the 1QFY2021 ended March of RMB90.31 million ($18.46 million), 31.5 times greater than its 1QFY2020 earnings of RMB2.87 million.

The group’s revenue for the period grew 120% y-o-y to RMB439.25 million from RMB199.39 million previously. In its 1QFY2021 update released on April 28, the group attributes the higher revenue to higher sales volume and average selling prices of its main products, dimethylformamide (DMF) and methylamine.

Average selling prices of DMF and methylamine were RMB9,344 per tonne (+98% y-o-y) and RMB9,272 per tonne (+38% y-o-y) respectively, while sales volume grew 65% and 32% y-o-y respectively.

SEE:Broker's Digest: SIA, Sheng Siong, Sunpower, AusGroup, Jiutian Chemical Group

The better sales volume and selling prices follow China’s continued recovery post-Covid, which the group says has resulted in a surge in demand from downstream users, who in turn are experiencing strong growth in both local and export markets for their products.

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Gross profit margin spiked from 7% in the 1QFY2020 to 32% in the 1QFY2021, which the group also attributes to the better prices.

In addition, capacity utilisation at its DMF and methylamine plants have increased to 69% and 89% respectively.

Shares in Jiutian Chemical Group closed 0.2 cents or 1.96% lower at 10 cents.