China’s Yizheng Chemical Fibre posts Q1 profit of CNY36.3m

30 April 2009 05:31  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s Sinopec Yizheng Chemical Fibre Company recorded a net profit of yuan (CNY)36.3m ($5.31m) in the first quarter of 2009 compared with a loss of CNY27.1m in the same period last year, the company said on Thursday.

A significant decrease in polyester raw material cost in tandem with lower crude oil price drove the profit up, the company said in a disclosure to the Shanghai Stock Exchange.

But the operating income of the company - a major polyster producer in China - dropped by 32.3% to CNY2.79bn due to the decrease in the selling prices of the products, the disclosure said.

“The impact of the financial crisis will continue to persist and spread," said company chairman Qian Hengge. "There has been no sign of a revival of the global economy yet. The operational environment for downstream textiles was also severe. The operational prospect for domestic polyester industry is hence full of uncertainties,” the chairman added. 

The company's production of polyester products totalled 553,707 tonnes in the first quarter of 2009, representing an increase of 2.3% compared to 541,095 tonnes in the corresponding period of last year.

However, production volume of purified terephthalic acid (PTA) in the first quarter grossed 249,291 tonnes, representing a decrease of 1.7% compared to 253,623 tonnes in the first quarter of last year, the disclosure said.

Sinopec holds a controlling 42% stake in the Yizheng, eastern Jiangsu province-based company.

($1=CNY6.83)

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By: Judith Wang
+65 6780 4359



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