21 August 2013 07:09 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Hubei Yihua Chemical Industry said on Wednesday that its net profit for the first half of 2013 fell by 56.6% year on year to yuan (CNY) 206m ($33.7m), as a result of oversupply amid a weak fertilizer market.
The company’s revenue in the first six months of 2013 dropped 11.3% year on year to CNY 8.32bn, compared with CNY 9.38bn in the same period in 2012, the company said in a statement to the Shenzhen Stock Exchange.
The company said that its profitability was largely curtailed by falling urea and DAP prices amid the oversupply in a weak fertilizer market.
The persistently weak PVC market also dragged down the company’s revenue, the company added.
The company has started up a new DAP facility at Songzi in Hubei province,which includes two DAP lines with a capacity of 280,000 tonnes/year each, in the first half of this year, according to the statement.
Additionally, the company has brought onstream a new 300,000 tonne/year PVC unit and a 250,000 tonne/year caustic soda unit during the same period, the statement added.
Hubei Yihua Chemical Industry is a key fertilizer producer in China.
($1 = CNY6.12)
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