Cangzhou, Hebei – TDI and fertilizer maker Dahua posted CNY 610m ($94m) net loss on a 42% drop in revenue to CNY 1.8bn, according to its 2015 annual report released in March.
The Shanghai-listed company has received a delisting warning from the stock exchange due to two consecutive years' of losses.
Cangzhou-based Dahua claims to be one of China’s largest TDI makers with 150kT/year TDI capacity or 17% of the country’s total capacity. With China’s TDI price more than halved over the past few years to about CNY 11,000/tonne at 2015 year end, the company’s TDI revenue fell by 39% to CNY 1.3bn last year; gross margin for TDI plummeted to -14%.
Production and sales volume for TDI, however, both decreased by only 12% to 138kT and 134kT, and the company expects full operation with 150kT TDI production in 2016 and CHY 2.5bn total revenue, said the annual report.
“High capacity utilization rate lowers the cost,” the company told UTECH-polyurethane.com. “And you need to maintain and expand the market share especially when competition is strong.”
Dahua slashed its workforce by almost 40% last year to about 1,700. “Our company made structural changes in 2015 for more efficient flat management to get us out of deficit,” said the company.
XE Currency Conversion: 6 April, 2016