Nanjing, Jiangsu – China’s largest system house Hongbaoli posted its annual results estimates in February, pegging its 2015 revenue at CNY 1.8bn ($276m), representing a 15% decrease compared to 2014. Net profit rose by 11% to CNY 103m.
Market demand was relatively low last year, and the drop in oil price has brought down the price of the company’s products, said its statement. The company said it has been improving customer services and has adopted a product differentiation strategy in order to counter the slide.
“For instance, we’ve shortened product development cycle for our appliance clients and we can provide systems with better thermal performance, shorter demoulding time and next-generation blowing agents,” Hongbaoli’s head of business development department Shi Xianchun told UTECH-polyurethane.com.
“Most of our appliance clients are top-tier companies in the sector and those are the aspects they value,” added Shi. “In a downward economy it’s important to hold on to the big players.”
Last year Hongbaoli’s sales of polyether polyols for rigid foam remained stable, and its sales volume of high flame retardant polyurethane insulation panels went up by more than 30%. Gross margin for isopropanolamine were raised by over 2%.
XE Currency Conversion: 29 February 2016.