05 March 2012 03:05 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Danhua Chemical Technology has swung to a net loss of yuan (CNY) 294.42m ($46.66m) for the fiscal year of 2011, compared with a net profit of CNY13.57m in 2010, according to the company’s filing to the Shanghai Stock Exchange over the weekend.
The loss was mainly because of the poor performance of its coal-based monoethylene glycol (MEG) and acetic anhydride products.
Danhua Technology’s sales revenue increased by 80.53% year on year to CNY557.23m last year, according to the filing.
The company’s subsidiary Tongliao Jinmei Chemical runs a 200,000 tonne/year MEG facility in Inner Mongolia, the company said.
It produced 33,600 tonnes of MEG for the whole year of 2011 as a result of unstable production at the facility, which led to low operating rates at the plant, it said.
The company plans to shut down the MEG facility during the first half year of 2012 for technical updating and maintenance. The facility is running at 50% of its capacity, the company said in the statement.
The firm’s acetic anhydride sector saw weak performance last year on increasing feedstock costs and weak downstream demand, it added.
Shanghai-listed Danhua Chemical Technology is a coal-based MEG producer based in Jiangsu province in east China.
($1 = CNY6.31)
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