China’s Jiangsu Lopal Tech. Co. and Richful Lube Additive Co. recorded increases in net profit and revenue last year as both seemed to benefit from doing business in one of the few economies that grew during the pandemic. Lopal’s sales of urea products more than offset a miniscule dip for its finished lubricants.
The Chinese government estimates that the country’s gross domestic product rose 2.3% during 2020.
Richful’s revenue increased 31% to ¥860.9 million (U.S. $131.7 million), according to the company’s financial report for 2020. Net profit jumped by 86%, compared to the previous year, to ¥182.9 million.
“China’s huge lubricant consumption was responsible for the demand in lubricant additives,” the report said. “According to the Shanghai Lubricant Traders Association, domestic demand for lubricant additives is expected to increase to 1.1 million tons by 2023.”
Based in Xinxiang, Henan province, Richful offered 35 million shares of stock in an initial public offering on the Shenzhen Stock Exchange last year. Richful’s plant in Xinxiang, has capacity to manufacture about 100,000 t/y of components and 15,000 t/y of packages.
Components include detergents and total base number boosters based on sulfur and calcium, polyisobutylene succinimide ashless dispersants, zinc dialkyl dithiophosphate (or ZDDP), high-temperature antioxidant such as butyl octyl, P,P’-dinonyl, ester-phenolic, thioether and phenolic ester and ashless antioxidants. It provides packages for passenger car engine oils which meet specifications from API SE to API SN and heavy-duty engine oils for API CD to API CH-4, and anti-wear hydraulic oil packages.
Lubricant manufacturer Jiangsu Lopal Tech reported an increase in revenue by 12% to ¥1.9 billion and net profit jumped 59% to ¥202.8 million. The company expects the market to remain strong and forecast revenue to reach 2.6 billion yuan and net income to 250 million yuan for the 2021 financial year.
The company said that due to the increased stringent emission standards in China, demand for the company’s motor vehicle urea solution products was strong and the company expects the market to continue to grow and will continue to focus on branding. The company’s diesel exhaust fluid recorded a 41% jump in revenues last year. The product is sold under its Kelas brand and includes Urea Solution Ice Cool and Adblue.
Lubricant is the company’s largest business segment but sales fell slightly ¥761.3 million. Gross profit margin increased 3.3%. The company markets engine oils and gear oils under its Lopal brand and car care products, like coolants, under the 3ECARE brand.