Nanjing, Jiangsu – China’s largest polyurethane surfactant maker, Maysta Chemical, posted CNY 41m ($6m) net profit in 2018, down by 20% from 2017. Revenue rose 1% to CNY 305m.
Net profit less non-recurring items fell by 40% in 2018 to CNY 25m. The company has experienced two consecutive years of falling profits since its listing.
According to Maysta’s annual report, the number of surfactant makers in China grew in 2018, in spite of tightened environmental regulations, and feedstock prices were close to the historic high.
Growth of the country’s overall polyurethane sector also slowed down. In all, 11.3 MT production of polyurethane products were produced in China last year. This includes 4.4 MT of flexible and rigid foam products. These sectors had combined growth of 2.4% from 2017.
Profits would have been higher, but Maysta raised research expenditure by 17% on 2017 to CNY 22m.
Maysta sold 9.4kT rigid foam surfactant in 2018, generating 81% of its total revenue. The China market accounted for 60% of the company’s 2018 revenue, according to the annual report.
The company which opened a subsidiary in the UK to serve Western markets in January is building a 6kT/year expansion in Nanjing. The company said that this is preparing for a trial run. Maysta expects to have 22kT/year total capacity in H2 2019, the annual report said.
Currency conversion: XE.com