As share price is supposed to be forward looking, the management did not appear to be too optimistic going forward. pls correct if wrong.
So far already dropped 5% this morning...
Not sure if share price will drop below 40 cents ...
Although the automobile industry in China is poised for further growth which will indirectly
benefit our Group, US&rsquo s anti-dumping and countervailing measures against China&rsquo s tire
makers, as well as the over-capacity and under-utilisation issues faced by the China tire
industry, may dampen demand for our rubber chemical products.
The new Environmental Protection Law of China has come into force on 1 January 2015. As
environmental regulations become increasingly stringent, there may be further consolidation
in the rubber chemicals industry in China. However, as more of our competitors adjust to the
new regulations and meet compliance standards, the market supply of accelerators will
progressively increase. Further, given that international crude oil prices have fallen sharply
over the past several months, which has resulted in our main raw material prices remaining
at low levels, our selling prices may increasingly come under pressure.