Copton Tech reported that its net profit plunged 92% and that its operating income fell 20% in the fourth quarter, while full-year net profit fell 63% and operating income slipped 29%.
Fourth-quarter lubricant sales revenue also fell more than 63%, while industrial sales revenue experienced an uptick.
Copton posted net profit of ¥819,797 (U.S. $118,600) in the fourth quarter, compared to ¥10.2 million in the same period in 2021. Operating income for the quarter decreased to ¥199.2 million, from ¥248.2 million.
For the full year, Copton posted net profit of ¥39.6 million, down from ¥105.7 million for 2021. Operating income in 2022 declined from ¥1.1 billion to ¥791.6 million.
The company separately reported operating data for the fourth quarter, including sales revenue, sales volume and production for its product segments. Together, automotive and industrial lubricant sales accounted for 49% of the company’s ¥202.1 million in sales in the fourth quarter. Antifreeze and exhaust gas treatment products accounted for the remainder.
Automotive lubricant sales plummeted 63% to ¥75.3 million in the fourth quarter, compared to ¥201.9 million in the same period in 2021. Automotive lubricant sales volume plunged 70% to 3,865 metric tons, and production volume was down 73% at 3,422 tons, compared to 12,569 tons.
Industrial lubricant sales rose 6% to ¥24.1 million, from ¥22.8 million. Sales volume for the company’s industrial lubricants declined 7% to 2,238 tons, while production volume fell 28% to 2,095 tons, compared to 2,911 tons.
Based in Qingdao, Shangdong province, the company manufactures various lubricants under the Copton brand.