Wenzhou, Zhejiang – Huafon Spandex showed a 24% year-on-year drop in Q1 sales to CNY 2.6bn ($372 m).
The company is the Shenzhen-listed elastane and PU resin arm of China’s polyurethane heavyweight Huafon Group. It achieved CNY 273m net profit during the Q1 period, down 17% from a year ago, according to its regular financial report.
Huafon’s R&D expenditure in Q1 slipped by a third to CNY 103m. Prepaid accounts jumped 53% to CNY 472m in Q1, mainly due to advances paid to feedstock suppliers, said the report.
Huafon’s 2019 sales dropped 9% from 2018 to CNY 13.8bn. Net profit fell by 5% to CNY 1.8bn, said its annual report in April.
The company claims to be China’s largest, and the world’s second largest, elastane maker, with a current capacity of 150kT/year, and 100kT/year more in the pipeline.
It also claims to be the world’s largest PU resin and adipic acid producer, with 420kT/year PU resin capacity and 540kT/year capacity for adipic acid. This means it has capacity to produce 60% of the country's demand for PU resins and 30% of China’s adipic acid production. It has an additional 210kT/year adipic acid project in the pipeline.
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