Lee & Man Chemicals net profit slips 28.3%

Disruptions in China’s manufacturing industry affected profits.

Chemical manufacturing company Lee & Man Chemicals' net profit dropped 28.3% YoY to $503m for the year ended 31 December 2020.

The group announced that the total revenue for 2020 was at $3.1b, 10.8% lower compared to 2019.

Final final dividend for the year ended 31 December 2020 was at $16.5 cents per share.

CEO Norman Lee said disruptions in China’s manufacturing industry due to the pandemic was the main cause for drop in profits.

“Countries around the world continued to suffer from the impacts of the prolonged pandemic, resulting in the drastic slowdown and even contraction of the overall economy. Demand for chemical products stabilized in the second half of 2020, but their prices have been maintained at low levels in recent years, thereby exerting pressures on the Group’s profitability,” Lee said.

As hope for vaccines rises, Lee said the company will maintain cautiously optimistic prospects for its operations in 2021.