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China Sunsine issues positive profit alert
SPECIALTY rubber chemicals manufacturer China Sunsine Chemical Holdings said on Thursday that it expects to report a substantial increase in consolidated net profit in the first quarter from the same period a year earlier.
The group will report results for the quarter ended March 31 on Wednesday.
China Sunsine said the expected profit growth is due mainly to an increase in both the average selling price and sales volume of its products.
"The Chinese government has been placing more emphasis on environmental protection, and more frequent environmental protection inspections were conducted. Some players in the rubber chemicals industry which failed to meet the relevant environmental regulations were forced to suspend their productions," the group said.
The resulting supply shortage in the market worked to China Sunsine's advantage, it said.
The counter fell one cent or 0.68 per cent to S$1.46 on Thursday before the announcement was made.