Hainan Rubber posts drop in net losses

Haikou, China – China’s largest natural rubber maker Hainan Rubber Group reported a drop in net loss to 216 million yuan (€29 million) over the first six months of 2016, compared to €42 million net loss in H1 2015.

The company sold 335,000 tonnes of natural rubber over the same period, up 24 percent year on year. Revenue rose 11 percent to €501 million.

“China’s macroeconomy was stablising in the first half of 2016,” said Hainan Rubber’s interim report, “although natural rubber price was still far below the production cost.”

Although overseas sales dropped by 41 percent to €87 million, the company’s fully owned trading subsidiary in Singapore saw a 148 percent rise in net profit to €422,000, with 105,000 tonnes of natural rubber sold over the period.

Hainan Rubber is still developing its non-rubber businesses such as fruit plantation and tourism.