China Sunsine net profit up 85% in Q3

SPECIALTY rubber chemicals producer China Sunsine Chemical Holdings has posted a net profit of RMB 143.4 million (S$28.6 million) in the third quarter, up 85 per cent from the same period a year earlier.

Revenue in the three months ended Sept 30 jumped 22 per cent to RMB 775.6 million, due to a 9 per cent rise in sales volume and 12 per cent increase in average selling price (ASP).

The higher ASP in Q3 was due mainly to the fixing of higher quarterly prices with bigger customers in advance in the second quarter, given the short supply of rubber chemicals in China during the past few quarters, the group said.

However, on a quarter-on-quarter basis, the ASP fell 11 per cent from Q2, owing to the decrease in the group's raw material prices and weaker demand from domestic tyre makers, the group noted.