Jinjing expect its soda ash business to get through difficulties

Jinjing Group has announced that its main glass business of Jinjing Group has been greatly impacted by the soft market. The Q3 profit is lower than its market expectation, with the lowest return on equity in three years and the declined 22.50% of gross profit rate on sales.

The demand for flat glass shrinks: in July and August, the growth rate of output respectively fells by 0.6% and 5.6%, as well as the sales of flat glass. However, with the real estate policy, demand for flat glass is expected to recover.

According to the company’s research, the price of ultra-white glass is relatively stable with over 50% of gross profit rate. From next month, Jinjing Group will produce ultra-white glass all the year around. Now the company has received a large amount of orders. The sales of ultra-white will keep on increasing in 2009.

Although costs on crude salt and other materials are high, price of soda ash still keeps high. A 1,000,000-ton soda ash project is almost completed. The company has prepared to put it into production, which will increase the output of soda ash in 2008 to 300,000 tons and gain profits.

The operation of soda ash project will ensure the rapid growth of company’s performance in 2009, and remain its Investment Grade.