Jiangsu Zhongsheng Gaoke Environmental Co. reported a 30% year-to-year drop in net income for the third quarter, on revenue that was 20% lower than the same period of 2020.
The lubricant marketer, which is headquartered outside the Eastern China city of Yixing, recorded income of ¥17.5 million (U.S. $2.8 million) for the three months ended Sept. 30, down from ¥25.4 million for the third quarter of 2020.
The company had ¥205 million during the quarter, according to its latest earnings filing on the Shenzhen Stock Exchange, down from ¥256 million during the same period a year earlier.
Lubricants was formerly Gaoke’s sole business, but in 2020 it acquired a controlling share of Suzhou Zhongsheng Environmental Remediation Co. for ¥631 million as part of a strategy to diversify its activities. In doing so it entered the fields of supplying equipment for water treatment and soil remediation services. The acquisition of Zhongsheng was large enough to constitute a restructuring of Gaoke. In mid-2020, after the deal closed, officials said the merger would increase Gaoke’s annual profit by ¥110 million by 2022.