Black Cat Carbon Black’s revenue fell by about 5% and its loss reached more than 200 million

　　On August 25, 2023, the board of directors of Jiangxi Black Cat Carbon Black Co., Ltd. released the financial report for the first half of this year, revealing a slight dip in revenue and significant losses. From January to June this year, the company's operating income amounted to 4.423 billion yuan, marking a year-on-year decrease of 4.98%. The net profit loss reached 236 million yuan, reflecting a substantial year-on-year decrease of 445.79%.

　　The company's core operations encompass carbon black, tar refining, and white carbon black, with the revenue from the carbon black business constituting 85.60% of the total revenue. During the reporting period, the revenue from the carbon black business was 3.784 billion yuan, a year-on-year decline of 5.55%. The gross profit margin registered at -0.96%, indicating a year-on-year decrease of 7.15 percentage points.

　　In the domestic market, Black Cat Carbon Black Company garnered business revenue of 3.974 billion yuan, showing a year-on-year increase of 6.23%. However, the gross profit margin in this segment stood at -4.31%, marking a year-on-year decrease of 8.38 percentage points. In contrast, the overseas business reported revenue of 449 million yuan, marking a year-on-year decrease of 50.88%. The gross profit margin for this sector was 10.59%, reflecting a year-on-year decrease of 3.46 percentage points.

　　Black Cat Carbon Black attributed the challenges to the pricing dynamics of coal tar, a crucial component in carbon black production. The persistently high prices of coal tar, coupled with subdued demand in downstream markets, contributed to the decline in gross profit in the first quarter of the year. Moreover, in the initial half of the second quarter, a sharp decline in coal tar prices led to a subsequent drop in the prices of carbon black products. This necessitated a concerted effort to deplete high-cost inventory of raw materials and products, resulting in a significant drop in gross profit for each subsidiary compared to the preceding quarter.