Monday, 12 May 2008

Jiutian Chemical - Q1 2008 Results

Q1 FY 2008 – Key Highlights

• Snow storm that hit South China adversely impacted on PU downstream industries, Jiuyang’s DMF factory had to shut downtemporarily.
• Consequently average prices of key products, DMF, Methylamine were significantly lower against 4Q07 and 1Q06 average prices.
• Methanol prices surged in March 08 further aggravating production costs of methylamine and DMF.
• Pre-operating expenses (RMB1.5 million) of Jiulong from amortization of land use rights and wages of new workers recruited increased group’s overheads vs Q1'07.

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