China Sunsine Chemical Holdings (China Sunsine), a specialty rubber chemicals producer and a global leader in production and supply of rubber accelerators, has reported a 44% decline in its net profit in FY2020 from RMB 388.9 million in FY2019 to RMB 218.8 million.

The Group’s revenue for FY2020 was down 13% from RMB 2,691.6 million in FY2019 to RMB 2,333.7 million. This was mainly due to the lower overall Average Selling Price (ASP) which decreased by 15% to RMB 13,571 per ton as compared to RMB 15,970 per ton in FY2019, while the sales volume increased to a new record high of 169,876 tons. Gross Profit Margin (GPM) for the year fell 3.3 percentage points from 29.0% a year ago to 25.7%.

Although the global economy was still heavily impacted by the unexpected COVID-19 pandemic, the Group’s performance improved in 2H2020, fueled by China’s rapidly recovering economy and the auto market’s rebound.

During the second half of the year(H2), the Group’s revenue increased marginally to RMB 1,291.1 million from RMB 1,278.0 million in 2H2019, mainly due to the higher sales volume albeit offset by lower overall ASP.  The overall ASP declined by 9% to RMB 13,579 per ton, from RMB 14,877 per ton a year ago. This was mainly due to the decrease in raw material prices and intensifying competition in the rubber chemicals industry. During H2, sales volume continued to grow 10% to 93,556 tons. This was attributed to the Group’s consistent and robust marketing efforts, backed by the expansion in the company's capacity to meet the market demand. Net profit surged 11% from RMB 123.0 million to RMB 136.4 million.

For the 12-month period, the Group’s sales volume for Accelerator, and IS increased by 3% and 2%, respectively. Anti-oxidant products decreased by 3% mainly due to the lower sales volume in 1H2020 caused by COVID-19. Overall, the capacities for all these three categories achieved a high utilization rate.