SINOSTAR PEC 1Q2019 RESULT UPDATES
- Revenue rose 85% Y-o-Y to RMB 979.5 million driven by maiden contributions from newly acquired subsidiary, Dongming Qianhai at end of FY2018
- Net profit grew 82% Y-o-Y to RMB 38.8 million
The Group’s propylene production plant at Dongming Qianhai has been in stable production since the start of FY2019, and began contributing to our group in the past quarter.
Polypropylene is the most important derivative of propylene and is calculated to form more than 70% of propylene demand. In tandem with our expanded propylene production capacity, the Group is constructing a new polypropylene plant and presently at the piling completion stage. The construction of the polypropylene production plant is estimated to complete by the third quarter of fiscal year 2020.
The Group will continue to focus on cost efficiency along with increasing frequency in cost budget review, and remain cautiously optimistic about its ability to achieve profitability in 2019.
Mr Zheng Liucheng, Chief Executive Officer and Executive Director of Sinostar PEC, commented, “We are really pleased with our 1Q2019 results. With the consolidation of Dongming Qianhai, we have beefed up our production capability and expertise to produce more value-added products such as MTBE and Isobutylene. We will continue to execute on our expansion plans while being mindful of our cash flow and gearing to maximize shareholder value”
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