Yantai, Shandong – Wanhua’s net profit in Q3 2018 slipped by 30% year-on-year to CNY 2.07bn ($299m); revenue during the quarter grew by 9% to CNY 159m.
The company’s shares on the Shanghai Stock Exchange slumped by 10%, the maximum daily price fall allowed by Chinese exchanges, following the release of its quarterly report on 18 October.
According to a Wanhua announcement, during the quarter it produced 466 tons polyurethane related products and sold 478 tons, generating CNY 7.5bn in sales.
The company’s monomeric MDI price during the quarter was up from Q3 2017, but the polymeric MDI price dropped. For instance, the former’s price in September was up 12% from a year ago to CNY 31,200/t; the latter’s down by 30% to CNY 20,000/t.
Wanhua’s inventory at the end of Q3 also climbed 20% from the beginning of the year, to CNY 8.4bn.
Over the first three quarters of 2018 Wanhua’s revenue rose by 18% year-on-year to CNY 46bn; net profit increased by 15% to CNY 9bn.
The company's takeover of its controlling shareholder Wanhua Chemical Industry is still in progress. The latest update was in September, announcing that no dissenting shareholder has opted for cash payment.
Currency Conversion: Xe.com
