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China Fiberglass strengthens leading position in fiberglass sector

China Fiberglass Co., Ltd. reported revenues of RMB 2.0 billion in the first half of 2008, an increase of 43.86% over the same period of 2007, and of RMB 152.9 million net profit, an increase of 70.32…

China Fiberglass Co., Ltd. reported revenues of RMB 2.0 billion in the first half of 2008, an increase of 43.86% over the same period of 2007, and of RMB 152.9 million net profit, an increase of 70.32%, while EPS was RMB 0.3579, thanks to production expansion and sales increase. Production expansion regarded the start-up of production at the 140,000 t/a alkali-free fiberglass kiln-drawing production line in Tongxiang site, Zhejiang province, and the 40,000 t/a alkali-free fiberglass kiln-drawing production line in Chengdu site, Sichuan province, in March 2008 and January 2008 respectively, bringing the capacity of fiberglass to be more than 700,000 t/a. With this increase in output, revenue from fiberglass increased 46.28% year-on-year to RMB 2.020 billion in the first half of 2008, accounting for 43.86% of the total revenue. The sales from overseas markets were RMB 1.2 billion, up 89.9% year-on-year, accounting for 60% of the total revenue. However, sales in the domestic market reported an increase of only 5.5%. In the first half of 2008, the gross profit rate of the company in the fiberglass business was 35.27% compared to 30.9% in the same period of 2007. Moreover, an additional 140,000 t/a alkali-free fiberglass kiln-drawing production line in Tongxiang and an extra 60,000 t/a medium-alkali fiberglass kiln-drawing production line in Chengdu, started operations in July 2008.

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