Nanjing, Jiangsu – China’s system house Hongbaoli estimates its 2017 annual net profit will drop 66% compared with 2016 to CNY 43m ($7m).
Hongbaoli 2017 profits down by two-thirds
Ground breaking in Taizhou in 2015.
Revenue over the year is pegged at CNY 2.2bn, up 19% from 2016, said the company’s announcement in late February.
In 2017 the company managed to raise the price and sales volume of its main product, rigid foam polyol. ‘Significant rises in China’s bulk chemical prices as well as Yuan’s appreciation has put great pressure on the company’s operation,’ said the announcement.
In 2016, overseas markets contributed 30% of Hongbaoli’s total revenue.
The absence of a one-off payment of CNY 67m in government compensation in 2016 added to the drop, the company said. The company relocated a plant and was compensated by the government.
Hongbaoli’s total assets increased by 17% from 2016 to CNY 2.9bn. The increase was mainly a result of its ongoing propylene oxide project in Taizhou, Jiangsu province.
Trial runs at the 120kT/year project are scheduled for first half of 2018.
Currency Conversion: Xe.com
