23 April 2002 04:52 [Source: ICIS news]
SINGAPORE (CNI)--China's polyvinyl chloride (PVC) major Shanghai Chlor-Alkali Chemical Co (SCAC) has posted a 80% decline in net profit for the year ending 31 December 2001, mainly due to poor product prices.
The company's net profit fell to Rmb5.13m ($620 182/Euro698 073) from Rmb26m in the previous year. SCAC also saw an operating loss of Rmb47.68m, compared with an operating profit of Rmb37.19m in 2000.
SCAC's revenue for 2001 dipped by 7.2% to Rmb2.73bn.
The company attributed the drop in revenue to poor markets and stiff competition from PVC imports following China's entry into the World Trade Organisation (WTO) which had resulted in a 26% decline in domestic prices, reaching a 10-year low. It said PVC imports in 2001 had increased by 32.63% compared with the previous year.
China's import tariffs on PVC dropped from 16% to 12.8% from 1 January 2002.
SCAC added more than 200% to its debt repayment of Rmb332m in 2001 which also eroded its profitability.
The Chinese company has set out a number of strategies in order to achieve targeted revenue of Rmb2.36bn in 2002.
SCAC said it will improve the quality of its assets, introduce modern financial management methods, conduct market research and enhance research to innovate its products.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|