Shanghai – Shanghai Carthane, a Chinese maker of polyurethane NVH products, pegs its unaudited net profit in 2019 at CNY 85m ($12m), down by 33% from 2018.
Revenue in 2019 is likely to stand at CNY 494m, down by 10% from 2018, said the company’s announcement.
The drop is ‘mainly caused by an overall sluggish automotive market, with a slowdown in the release of new models by OEMs and the falling market share of Chinese brands,’ said the announcement.
Carthane claims a 32% share of the China market in PU bumper stops, spring aids and jounce bumpers for auto suspension system, second only to BASF.
It sells to a range of domestic and international brands such as Volkswagen, Ford, Geely and the country’s new energy vehicle leaders Zoyte and WM Motor.
Carthane was set up in 2000 and backed by China’s Liming Research Institute of Chemical Industry, which holds a 10% stake. Liming specializes in the PU sector and is a maker of PU systems.