Yantai, Shandong – Wanhua Chemical released its 2014 first quarter results in April, reporting a 7.5% rise on year in revenue to RMB5.1bn ($822m). Its net profit during the first three months went up 1.5% to RMB753m.
According to the first quarter report, one of the company’s subsidiaries, MDI maker Wanhua Chemical (Ningbo) based in Ningbo, Zhejiang province, has been transformed into a manufacturing base and no longer undertakes research functions.
The Ningbo subsidiary was previously a high-tech company with a discounted tax rate, and the transformation is a major reason for a 34% year-on-year increase in Wanhua’s Q1 income taxes. The Ningbo subsidiary also contributed to a 39% jump in Wanhua’s inventory from the beginning of this year due to its renovation at the end of 2013.
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