Nanjing, Jiangsu – Chinese system house Hongbaoli reported CNY52m ($7.4m) net profit in H1 2020, up 33% from a year ago, despite its revenue falling by 21% to CNY969m.
The coronavirus pandemic has dragged down sales volumes. Lower prices for feedstock propylene oxide, down 7% from a year ago, has led to lower product prices, according to the company’s half-year report in July.
Nevertheless, it was able to raise the overall profit margin by 3.8%, thanks to lowered costs and better control over the production process, the report said.
Net profit less non-recurring items for the period reached CNY49m, registering an even higher year-on-year growth rate of 43%.
During H1 2020, sales for Hongbaoli’s rigid system business shrunk by 23% from a year ago, to CNY565m. High flame-retardant PU insulation panels generated CNY5.5m sales for the company, down 45% from H1 2019.
Its capacity now stands at 150kT/year rigid system, 30kT/year specialty system and 10 km2/year of PU panels.
Hongbaoli ups H1 profit on revenue drop
