31st Oct 2014 12:08
LONDON (Alliance News) - GTS Chemical Holdings PLC Friday said it significantly increased its revenue in the first nine months of the current financial year, driven by strong sales growth across its businesses.
The Chinese producer of ammonium sulfite and ammonium bisulfite, said revenue increased by almost 67% in the nine months to September 30 to CNY503.3 million, up from CNY302.1 million a year earlier, as strong revenue growth across its divisions was buoyed by further expansion of its distributor networks for lubricating oils and recarburizer.
It said revenue from its core specialty chemicals division grew by 25% to CNY353.7 million.
"Sales to Tralin Paper, our largest customer, underpin our success in this segment and continue to grow as Tralin itself implements its own expansion plans. Sales to our other customers also remain strong," the company said in a statement.
It said that its lubricating oils division saw sales increase to CNY101.4 million, from only CNY11.2 million the prior year, with the division now accounting for around 20% of its revenues during the period.
"Since the beginning of this year, we have increased the number of our distributors from 18 to 43 and now operate in 18 regions, up from nine at the end of 2013," it said.
GTS Chemical said expansion in its recarburizer division network drove an exceptional increase in sales during the nine month period to CNY48.1 million, up from only CNY8.6 million for the same period a year earlier.
"Our recarburizer division network has grown from 11 distributors in six provinces at the end of 2013 to 19 distributors across seven provinces at September 30," it said.
GTS Chemical recently acquired the right to land next to its existing facility, which the company said is on track to be completed by the end of 2014.
"[This] will enable GTS to continue to expand production capacity for specialty chemicals and lubricant oils. In the period we have commissioned a new specialty chemical line which has increased liquid production capacity by 25%," the company said.
The company also said that it has registered two new "innovative" patents relating to the production of ammonium sulfite and ammonium bisulfite, as part of what it said it is "continuous drive to increase efficiency and productivity".
GTS Chemical shares were untraded Friday midday at 38.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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