China Sunsine Reports Strong Q3 Performance and Upcoming Capacity Expansion

Key Points:

• China’s GDP grew 4.8% year-on-year in the first three quarters of 2024.
• The Group sold 54,091 tonnes of products in Q3 2024 with a slight sales revenue increase.
• Net profit surged by 43% from Q3 2023 to Q3 2024.
• Year-to-date, the Group sold 159,555 tonnes of products, with a net profit increase of 9%.
• China’s stimulus policies are expected to further boost demand for the Group’s products.

China Sunsine Chemical Holdings Ltd. has reported a robust performance for the third quarter of 2024, driven by higher average selling prices and increased sales volumes. The Group saw its net profit jump by 43% year-on-year, reaching RMB 92.9 million in Q3 2024 compared to RMB 65.0 million in Q3 2023. For the year-to-date, the Group’s net profit increased by 9% to RMB 281.7 million, with sales revenue rising slightly by 1% to RMB 2,633.2 million.

The Chinese economy demonstrated resilience with a GDP growth of 4.8% in the first three quarters of 2024, and the automotive sector showed significant growth as well. China produced 833.55 million tyres, marking a 9.1% year-on-year increase, while sales of new energy vehicles (NEVs) soared by 32.5%, accounting for 38.6% of total new vehicle sales.

The Group’s sales revenue in Q3 2024 increased slightly to RMB 884.1 million, attributed to a 5% rise in average selling price, which reached RMB 16,147 per tonne due to higher raw material costs. The Group continues to face strong competition in the rubber chemicals industry but remains optimistic due to the Chinese government’s stimulus measures aimed at boosting local consumption.

Important Updates for Shareholders:

• The Group is nearing the completion of the trial run for the 20,000-tonne per annum Continuous Production of High Quality MBT project, with commercial production expected to commence by the end of 2024.
• The installation of machinery for the Phase 2 30,000-tonne per annum IS project is underway, with completion anticipated by the end of 2024.

The Group’s estimated annual capacity remains on track, with no expected changes in the production capacities of accelerators, insoluble sulphur, and anti-oxidants through FY2025.

China Sunsine remains a leading specialty chemical producer, serving more than three-quarters of the Global Top 75 tyre makers and maintaining a strong market position through its “Sunsine” brand, accredited as a “Shandong Province Famous Brand”.

As the global economy faces uncertainties, China Sunsine’s strategic focus on maintaining sales production equilibrium and strengthening market leadership positions the Group well to navigate the challenges ahead and capitalize on growth opportunities in the automotive and tyre industries.

Disclaimer: This article is based on the latest business updates provided by China Sunsine Chemical Holdings Ltd. Investors are advised to conduct their own research and consider their financial situation before making any investment decisions. The information provided herein is for informational purposes only and should not be construed as financial advice.