China Sunsine Chemical Holdings: Strong Growth Amid Global Challenges
China Sunsine Chemical Holdings: Strong Growth Amid Global Challenges
China Sunsine Chemical Holdings Ltd. has released its business updates for the first three quarters of 2024, showcasing a steady growth in revenue and a significant increase in net profit despite facing global economic uncertainties.
Key Financial Highlights
- China’s GDP grew 4.8% year-on-year in the first three quarters of 2024, with a 4.6% growth in the third quarter.
- The Group sold a total of 54,091 tonnes of products in 3Q2024, with a sales revenue increase of 1% to RMB 884.1 million, up from RMB 875.0 million in 3Q2023.
- The Average Selling Price (ASP) in 3Q2024 increased by approximately 5% year-on-year to RMB 16,147 per tonne.
- Net profit increased by 43% from RMB 65.0 million in 3Q2023 to RMB 92.9 million in 3Q2024.
- For YTD3Q2024, the Group sold a total of 159,555 tonnes of products, with sales revenue rising slightly by 1% year-on-year to RMB 2,633.2 million.
- Net profit for YTD3Q2024 increased by 9% to RMB 281.7 million.
Business Environment and Challenges
The global economy continues to face challenges such as high interest rates, the Ukraine-Russia conflict, the Israel-Hamas conflict, and rising geopolitical tensions between the US and China. Locally, China Sunsine faces strong competition in the rubber chemicals industry.
Stimulus Policies and Market Confidence
China has introduced stimulus policies to boost its economy, with the recently announced stimulus package boosting market confidence and expectations. There are hopes for additional measures to stimulate local consumption, thereby increasing demand for vehicles, tyres, and China Sunsine’s products.
Capacity Expansion Plans
- Phase 1 20,000-tonne per annum Continuous Production of High Quality MBT project: The trial run is almost completed, with commercial production expected to commence by the end of 2024.
- Phase 2 30,000-tonne per annum IS project: The Group is in the process of installing machinery, with completion expected by the end of 2024.
Annual Capacity Overview
Below is a summary of the Group’s estimated annual capacity at the end of each financial year:
| Product |
FY2019 |
FY2020 |
FY2021 |
FY2022 |
FY2023 |
FY2024 |
FY2025e |
| Accelerators |
97,000 |
117,000 |
117,000 |
117,000 |
117,000 |
117,000 |
117,000 |
| Insoluble Sulphur |
30,000 |
30,000 |
30,000 |
60,000 |
60,000 |
60,000 |
60,000 |
| Anti-oxidant |
45,000 |
45,000 |
45,000 |
77,000 |
77,000 |
77,000 |
77,000 |
| Total |
172,000 |
192,000 |
192,000 |
254,000 |
254,000 |
254,000 |
254,000 |
The Group remains committed to its strategy of “sales production equilibrium” and strengthening its market leadership position.
About China Sunsine Chemical Holdings Ltd.
Listed on SGX-ST on 5 July 2007, China Sunsine Chemical Holdings Ltd. is a leading specialty chemical producer, selling rubber accelerators, insoluble sulfur, and anti-oxidants, among other vulcanising agents. It serves over 75% of global top 75 tyre makers and PRC tyre giants. The company is renowned for its “Sunsine” brand, which has been accredited as a “Shandong Province Famous Brand”.
Riding on the robust growth of the auto and tyre industries in the PRC, China Sunsine has expanded its production capacity, delivered superior products and services, and implemented stringent environmental protection measures to stay ahead of the competition. It has achieved ISO9001:2008, ISO14001:2004, and GB/T28001-2011 standards.
For further information, shareholders and investors can contact:
Tong Yiping, Executive Director cum Chief Financial Officer
Email: tongyiping@ChinaSunsine.com
Jennie Liu, Investor Relations Manager
Email: jennie@ChinaSunsine.com
Tel: (65) 62206686 / 98358408
Disclaimer
This article is intended for informational purposes only and does not constitute financial advice. Investors are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions.
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