Zibo, Shandong – Lecron Energy Saving Materials, a maker of PU panels, systems and polyether polyol plasticisers, reported that annual revenue dropped in all three units in 2015.
The three units had a combined revenue of CNY 387m ($59m), down by 46% from 2014 numbers, according to its annual report released in April. A depressed macroeconomy is listed as the reason for the fall.
However, the Shenzhen-listed company’s overall revenue in 2015 grew by 16% to CNY 965m, thanks to its expansion into online marketing and consulting through acquisition last year. Net profit rose sixfold to CNY 28m compared to 2014, the company said.
The company has been strengthening its research in PU businesses, improving its all water foaming technology and rolling out a series of differentiated products such as high-flame-retardant system and a fast-demoulding system, said the annual report.
Lecron’s research spending grew by 13% last year to CNY 15m, and an R&D office in Shanghai is scheduled to open later this May, the company told UTECH-polyurethane.com.
In the 2016 first quarter Lecron continued to see all of its businesses other than online marketing shrink. Online marketing accounted for 84% of its CNY 269m Q1 revenue, up by 114% year on year.
Having divested a 51% stake in its surfactant subsidiary and the full stake in its construction subsidiary last year, Lecron signed a contract to sell 75% of its fine chemical subsidiary in April for CNY 77m.
XE Currency Conversion: 11 May 2016