In 2011H1, operating revenue of Luxi Chemical Group reached RMB5 billion, up 49.5% YoY; meanwhile, it contributed net profit of RMB180 million to its shareholder, a dramatic rise of 182% YoY. The main reasons for the growth included the strong product price and enhanced profitability.

The price of dichloroethane and urea steadily increased in 2011H1. The factory price of urea produced by Luxi Chemical was between RMB1,900-2,400/ton, up 25%-30% YoY, while its gross margin increased by 1.4% to 7.9%. The market price of dichloroethane achieved RMB5,500-8,300/ton, whereas it was merely RMB5,000-5,500/ton in the same period last year. The overall gross margin of chemical products increased by 4% and hit 15.3%.

Weekly Average Price of Dichloromethane and Urea in China, 2010-Aug. 2011 (RMB/t)

Source: Shanghai Chemical Industry Association; ResearchInChina