The board of China Sunshine Chemical Holdings has announced that it expects to report a material decrease in its consolidated net profit for the 2HFY2023 and FY2023 ended Dec 31, 2023, compared to the previous corresponding periods.
The company is expected to achieve lower revenue and net profit in 2HFY2023, attributed mainly to macroeconomic uncertainty and strong competition in the rubber chemicals industry.
The expected decrease in revenue and net profit is also due to the decrease in average selling prices, especially in the third quarter of FY2023. Although the company recorded a higher sales volume in FY2023 and better performance in 2HFY2023 compared to FY2022 and 2HFY2022, respectively, the lower net profit recorded in 3QFY2023 had a significant impact on net profit for both half and full-year periods.
The company is in the process of finalising its unaudited consolidated financial results for 2HFY2023 and FY2023, which will be announced on Feb 29.
Shares in China Sunshine closed 0.5 cents higher or 1.3% up at 39 cents on Feb 20.
