Caustic soda prices led to lower than expected results

Caustic soda prices fell much higher than expected, prices fell led to gross margins and income have appeared in a significant decline. The company's revenue in the first half of 2012 was 554 million yuan, revenue in the first half of 2013 was 469 million yuan, the main reason for decline in revenue is the price of caustic soda showed a significant decline in 32% of the caustic soda, for example, 2013 Caustic soda prices in the first half of the year (including tax) for the 590 ~ 630 yuan / ton, caustic soda in 2012 the price of about 800 to 850 yuan / ton, caustic soda prices have dropped significantly. For the second half of 2013, the price trend of caustic soda, we believe that pipe elbow the probability of future prices fell slightly larger. From the current price point of view, into July, 32% of the caustic soda offer and a certain degree of decline, combined with the current view of the economic situation, we believe that in the second half of 2013, caustic soda prices to steady or slightly down the main. The gross margin of caustic soda in 2013 is about 38.32%, the caustic soda raw material cost changes in the case of smaller, the main factor in gross Ciclopirox margin fell caustic soda prices fell. We expect caustic soda in 2013 revenue of about 1 billion, gross margin of 38%.

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