Wenzhou, Zhejiang – Huafon Spandex, the elastane and PU resin arm of Chinese conglomerate Huafon Group, recorded CNY665m ($96m) net profit in H1 2020, down by 22% from a year ago.
Revenue during the period contracted 9% year on year to CNY6.1bn, according to the company’s half-year report.
The coronavirus pandemic has caused severe fluctuations in feedstock prices, and sent shockwaves to the downstream sectors, dragging down the company’s product price, the report said. Environmental compliance pressure also increased.
Overseas sales at Huafon Spandex fell by 19% in H1 2020 from a year ago to CNY790m, accounting for 13% of its total sales.
The company remains China’s largest PU elastane maker, with 180kT/year capacity. Its capacity for PU shoe sole resin stood at 420kT/year, taking up 60% of China’s domestic market.
Huafon Spandex is also a major producer of adipic acid in the country, with a 30% market share.
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