Yantai, Shandong – Wanhua posted CNY 5.6bn ($794m) net profit in H1 2019, down by 46% from a year ago. Revenue dropped 15% to CNY 31.5bn.
‘A slowdown in the global economy; drops of main product prices and rising export costs have impacted our profitability,’ said the company’s half year report.
Wanhua’s monomeric MDI and polymeric MDI prices in H1 2019 were both down from H1 2018. For instance, the MDI price in June was down 23% from a year ago; TDI was down by 36%.
The company’s inventory shot up 4% between the end of 2018 and June 2019 reaching CNY 9.3bn.
During the half year Wanhua produced 1.35m tonne of polyurethane-related products and sold 1.32m ton. PU related goods generated 52% of its total revenue.
Its petrochemical business and fine chemical and new materials business brought in 24% and 10% revenue respectively.
Wanhua’s fully-owned subsidiary BorsodChem recorded CNY 763m net profit during the period on CNY 5.9bn sales, said the H1 report.
