Jiutian Chemical profit surges over 30 times to $18.4m in Q1

This is much higher than the $587,563 (RMB2.87m) recorded in the same quarter last year.

Singapore-listed Jiutian Chemical Group Limited has announced its net profit increased by 3,047% to $18.48m (CNY90.31m) in the first quarter of the year, from only $587,563 (CNY2.87m) over the same period in 2020.

The company’s revenue rose by 120% to $89.92m (CNY439.25m) during the quarter from $40.81m (CNY199.38m), largely due to an increase in sales volume and average selling price of its main products, Dimethylformamide (DMF) and Methylamine.

The average selling prices of DMF and Methylamine were $1,912 (CNY9,344) per tonne and $1,898 (CNY 9,272) per tonne, respectively. This reflects a 98% and 38% year-n-year increases on each product.

Further, the sales volume of DMF climbed 65%, whilst Methylamine’s was up by 32%.

“The increase in sales volume and average product prices was mainly due to the continuing recovery of China’s economy from the depth of the COVID -19 crisis and surge in demand for our main products from downstream users, who in turn are experiencing strong growth in both local and export markets for their products,” the company said.

The capacity utilisation of Jiutian’s DMF plant increased from 56% to 69% year-on-year, whilst capacity utilisation rate of their methylamine plant increased from 89% to full capacity.