China Rerun profit hit by weaker lubricant revenue
China Rerun Chemical Group said on Friday that its half-year profit dropped 50% on the back of weaker revenue as sales of lubricating oils fell heavily.
Chemicals
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17:10 19/04/24
China Rerun Chemical Group Ltd (DI)
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12:59 06/11/15
The company, which makes lubricant products for the Chinese automotive, industrial and agricultural markets, posted pre-tax profit of CN16.3m, down from 32.7m a year ago.
China Rerun said it remains conscious of the need to improve the company’s trading position and that every endeavour will be made to continue the growth it has enjoyed over the past ten years.
Executive Chairman Xinghe Wu said: "After a long period of sustained top and bottom line growth it is disappointing to see a period when key financial metrics have worsened.”
“We have experienced a more competitive environment that has been the case in the past and some market share has been lost. We continue to invest in product development, human resources and equipment. We believe that this is the correct response to more challenging market conditions. This strategy has been successful for many years and we believe it will be successful again. We are hopeful that the lost market share can be recovered through this investment.”