HAIKOU, China—China's largest natural rubber maker Hainan Rubber Group posted $8.55 million in net profit in 2016 compared to $143.4 million net loss in 2015.
Natural rubber price during the first three quarters of 2016 continued the slump in previous years, but the fourth quarter saw it rebound, the company said in its financial report. Revenue for the year rose by 6 percent to $1.39 billion.
More stringent cost control and asset disposal also contributed to the turn around, the firm said.
In 2016, Hainan Rubber finished the development of clay-reinforced natural rubber and rubber materials for jumbo tires.
The company looks to 800,000 metric tons of natural rubber in 2017 after selling 750,000 tons in 2016. The firm it also hopes to close the acquisition of Singapore's R1 International, the world's biggest natural rubber trader, sometime in 2017. If successful, the deal would bring the estimated sales volume to 1.6 million tons.
Selling directly to the world's top ten tire makers, Hainan Rubber saw its overseas main business sales reduced by 38 percent to $197.8 million in 2016.