12 April 2013 04:39 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Hengyi Petrochemical has posted a 84% decrease in its net profit for 2012 to yuan (CNY) 314m ($51m) from CNY1.92bn in 2011, the company said in a statement to the Shenzhen Stock Exchange on Friday.
Net profit declined, because of weak demand from the textile and apparel industry, Hengyi Petrochemical said in the statement.
The rapid expansion of new production capacities in the purified terephthalic acid (PTA) and polyester fibre sectors also weighed on its profit, it added.
Moreover, margins were squeezed by the short feedstock supply in the market, the company added, as it had been unable to produce sufficient output at a low cost.
This was despite a 3.7% year-on-year rise in its sales revenue to CNY32.7bn in 2012, according to the statement.
In its forecast for 2013, Hengyi Petrochemical said the company’s margins for PTA and polyester fibre products may be affected if the weak consumption from end-users persists.
The company, a subsidiary under Zhejiang Hengyi Group, is one of the largest PTA and polyester fibre producers in China.
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