28 April 2010 08:13 [Source: ICIS news]
GUANGZHOU (ICIS news)--China’s Weifang Yaxing Chemical Co said on Wednesday has incurred a first-quarter net loss of yuan (CNY) 25m ($3.7m), reversing a net profit of CNY3m posted in the same period in 2009, due to a sharp surge in feedstock costs.
The company had an operating loss of CNY34m for the three-month period ending 31 March, compared with an operating profit of CNY8m in the year-ago period, although operating revenue increased 27% year on year to CNY464m, the company said in a filing to the Shanghai Stock Exchange.
Higher selling prices of chlorinated polyethylene (CPE) products boosted the company's revenue, but this was offset by spikes in prices of major feedstock high density polyethylene (HDPE), it said.
Weifang Yaxing said that it would continue to be in losses in the first half of 2010, in view of the strong HDPE prices.
Based in Weifang of the eastern province of Shandong, Yaxing Chemical is a leading CPE producer in China. It has a CPE capacity of 110,000 tonnes/year.
($1 = CNY6.83)For more on HDPE visit ICIS chemical intelligence
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