Chairman of Hainan Rubber Group Resigns over Sustained Loss

Lin Jinting, board chairman of Hainan Rubber Group, a leading natural rubbermanufacturer in China, submitted a letter of resignation to the board recently.

Lin applied to resign from the posts of chairman, member, and director of the StrategicCommittee of the board, stating that he would not take on any post in the company.

According to relevant rules, Li’s resignation application took effect upon being deliveredto the board since his leave did no cause the number of board members to fall below thestatutory minimum headcount.

Lin started to work as chairman of Hainan Rubber Group from August 2011. At the same time, he was also board member and general manger of Hainan State Farms Co., Ltd.., where he became the chairman from March 2013.

In December 2015, the Hainan Provincial Government appointed Lin as the vice general manger of Hainan State Farms Investment Holding Group Co., Ltd., while dismissing him from being chairman and general manger of Hainan State Farms Co., Ltd..

In recent years, Hainan Rubber Group has suffered declining profits due to slump in natural rubber prices.

Earlier the company announced an initial estimate of 985 million yuan of loss in net profitattributable to shareholders of the listed company for 2015.

The company realized 3.383 billion yuan of operating income for H1 2015, down 27.63 percent year on year. It incurred 310 million yuan of loss in net profit, down 8161.45 percent compared with the same period in 2014. Its Q3 net profit dived 6064.63 percent.

The company attributed the estimated loss to continuous sluggishness of natural rubber prices.