.... the Group is expected to report a substantial increase in consolidated net profit, compared to the corresponding period from 1 October 2016 to 31 December 2016 as well as full year 2016.
The expected profit growth is mainly due to the increase in both average selling price (“ASP”) and sales volume of the Group’s products.
As disclosed in several of our prior results announcements, the Chinese government has been placing more emphasis on environmental protection, and more frequent environmental protection inspections were conducted. Some players in the rubber chemical industry which failed to meet the relevant environmental regulations were forced to suspend their productions.
This had resulted in the short supply in the market and accordingly, the Group was able to sell more products and increase its ASP.
"...the Group is expected to report a substantial increase in consolidated net profit, compared to the corresponding period from 1 January 2017 to 31 March 2017.
"The expected profit growth is mainly due to the increase in both average selling price (“ASP”) and sales volume of the Group’s products.
"As disclosed in several of our prior results announcements, the Chinese government has been placing more emphasis on environmental protection, and more frequent environmental protection inspections were conducted.
"Some players in the rubber chemicals industry which failed to meet the relevant environmental regulations were forced to suspend their production.
"This had resulted in the short supply in the market. In 1Q2018, the short supply continued, and accordingly, the Group was able to sell more products at a higher ASP."
