Jiutian Chemical Group C8R has recorded a loss of RMB68.6 million ($12.77 million) for the 3QFY2023 ended Sept 30, down from a net profit of RMB93.5 million this time last year.
Total revenue for 3QFY2023 fell 85% y-o-y to RMB80.2 million from RMB520 million in 3QFY2022, due mainly to a decrease in both sales volume and average selling prices of Jiutian Chemical’s main products dimethylformamide (DMF) and methylamine.
For 3QFY2023, the average selling prices of DMF and methylamine were RMB4,962 per tonne and RMB 6,553 per tonne, respectively, 53% and 51% lower than that for the same period last year.
In a Nov 6 announcement, the group attributed the decrease in average selling prices of its products to the “twin impact” of industry-wide softening demand from China’s slower than expected economic recovery, as well as the addition of supply capacity from new main competitor Jiangxi Xinlianxin Chemical Industry since 4QFY2022.
The sales volume of DMF and methylamine in 3QFY2023 were 68% and 73% lower than that of 3QFY2022. The lower sales volume was primarily due to the adjustment of production volume by Jiutian Chemical’s management to minimise losses from low selling prices.
As at Sept 30, the group’s net current assets position had declined by 28% to RMB 878.04 million.
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Shares in Jiutian Chemical closed 0.4 cents lower or 11.43% down at 3.1 cents on Nov 7.
