Cangzhou, Hebei – Cangzhou Dahua, one of China’s largest TDI makers, recorded CNY38m ($5.4m) net loss in Q1 2020, compared with CNY16m net profit in Q1 2019.
Revenue during the period arrived at CNY203m, down 64% from a year ago, said the company’s Q1 report in April.
China’s TDI downstream market was halted in February, resulting in high inventory at TDI makers, said the report.
In March as the coronavirus outbreak was curbed, downstream clients showed more willingness to reopen, but a majority were still closed. TDI price fell significantly from a year ago, added the report.
In Q1 2020 Dahua produced 29 kT TDI and sold 13kT, generating CNY125m revenue.
The company achieved CNY2.1bn sales in 2019, down 52% from 2018. Net profit in 2019 dipped by 95% to CNY46m.
Dahua produced 149kT TDI in 2019, accounting for 14.8% of the country’s total production, said its annual report. China’s TDI demand in 2019 fell by 1.6% from a year ago to 758kT.