Changtian Plastic & Chemical Limited reported on Tuesday that its net profit for the first quarter of 2015 surged to 13.8 million yuan on a disposal gain, compared to 3.8 million yuan a year ago.
The Chinese company had a 12.2 million yuan net gain from the disposal of machinery and equipment during the quarter.
Revenue, however, fell 29.3 per cent to 20.3 million yuan due to lower sales volume and average selling prices amid tough market conditions.
"The domestic economy in the People's Republic of China turned weak in 1Q15. Although the PRC government carried out some fiscal policies to stimulate the local economy, the benefits had not been reflected immediately. Thus, the customers' orders decreased,'' the company explained.
Sales of adhesive tapes declined 28.7 per cent to 11.5 million yuan, accounting for 56.9 per cent of total revenue. UV cured release film fell 30.3 per cent to 5.1 million yuan, contributing about 25 per cent to overall revenue. Sales of release papers fell 29.7 per cent to 3.7 million yuan, accounting for the remaining 18 per cent of revenue.
Changtian said the construction of the new plant to produce Nylon-6 chips is about 37 per cent completed at the end of March. The machinery for the new plant are expected to be ready for installation in end May 2015.