China Sunsine Q2 net profit falls 35% on lower average selling price

SPECIALTY rubber chemicals producer China Sunsine Chemical Holdings on Tuesday posted a net profit of 155.8 million yuan (S$31 million) in the second quarter, down 35 per cent from the same period a year earlier.

Revenue in the three months ended June 30 fell 17 per cent to 727 million yuan as a lower average selling price (ASP) offset a rise in sales volume.

ASP in the second quarter slipped by 29 per cent from the same period a year earlier to 16,633 yuan per tonne. On a quarter-on-quarter basis, ASP fell 6 per cent.

The decrease in ASP was due mainly to a fall in the price of raw materials, in particular, Aniline, the group said. A high base effect was also at play. The ASP in the second quarter last year was at a high level as a result of a rubber chemicals supply shortage, the group said.