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Company Briefs: China Sunsine Chemical Holdings

China Sunsine Chemical Holdings

Speciality rubber chemicals producer China Sunsine Chemical Holdings has posted a net profit of 143.4 million yuan (S$28.5 million) in the third quarter, up 85 per cent from the same period a year earlier.

Revenue in the three months ended Sept 30 jumped 22 per cent to 775.6 million yuan, due to a 9 per cent rise in sales volume and 12 per cent increase in average selling price (ASP).

The higher ASP in the quarter was due mainly to the fixing of higher quarterly prices with bigger customers in advance in the second quarter, given the short supply of rubber chemicals in China during the past few quarters, the group said.

However, on a quarter-on-quarter basis, the ASP fell 11 per cent from the second quarter, owing to the decrease in the group’s raw material prices and weaker demand from domestic tyre makers, the group noted.

Executive chairman Xu Cheng Qiu said the group will continue to maintain its strategy of “higher production leading to higher sales volume, which in turn will stimulate even higher output”.

Earnings per share were 0.292 yuan, up 85 per cent from 0.158 yuan in the third quarter last year. Net asset value per share was 4.503 yuan as of Sept 30, up from 3.276 yuan as of Dec 31 last year.

Capital World

Integrated property developer Capital World announced yesterday that it had signed a non-binding memorandum of understanding with PRG Holdings, a Bursa-listed investment holding company, for the latter to inject capital into the company by subscribing for new shares in Capital World.

Upon completion of the proposed investment, PRG would hold up to 29.9 per cent of the enlarged issued share capital of Capital World.

PRG is in the business of making and selling webbing, yarn, furniture components, rubber strips and fabrics, as well as involved in healthcare, property development and construction,

The exact terms of the investment are still subject to further negotiations and the satisfaction of conditions, among other factors. The parties also have to obtain relevant approvals from the regulatory authorities in Singapore and Malaysia.

“The proposed investment is expected to generate business synergies between parties,” Capital World said.

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