Longxing Chemical’s Profits Dropped by 88% in 2019

Longxing Chemical, a backbone enterprise among domestic carbon black industry, issued 2019 Annual Performance Report in February, showing that its gross revenue in 2019 was 2.806 Billion Yuan, down by 9.07% year-on-year and the net profits attributable to shareholders of listed company was 16.08 Million Yuan, down by 87.88% year-on-year. 

The sharp decrease on company business performance is mainly due to the joint influences of weakened market demand and fierce industrial competition, which shows as the fall in price of carbon black is far beyond the effect of material decline on cost and thus the gross margin of carbon black declines significantly. During the report period, no major changes on major business had occurred, and the company was still mainly engaged in production and sales of carbon black. The company had the operation revenue of 2.8 Billion Yuan, down by 9.07% year-on-year, and the operating profit of 21.63 Million Yuan, down by 86.40% year-on-year.