On July 13, Blackcat and Longxing Chemical published the performance preannoucement of the first half year in 2019, the net profit attributable to the shareholders of the listed companies of both companies had a deficit of 80 Million Yuan ~120 Million Yuan respectively, had a profit of 8 Million Yuan ~12 Million Yuan respectively.

According to the announcement, the net profit attributable to the shareholders of the listed companies of Blackcat in the same period of last year was 300 Million Yuan, with a year-on-year change of -139.20%~126.13%; the profit of Longxing Chemical in the same period of last year was 63.2319 Million Yuan, with a year-on-year decrease of 87.35%~81.02%.

According to the information, in the first half of this year, the price of raw oil for coke carbon black in China maintained high, meanwhile, affected by decline in demand of automobile industry and negative forecast of trade friction, the operating rate of the downstream tire market declined, the purchase intention of tire enterprises declined, the market demand for carbon black dropped; at the same time, the release of newly-added carbon black capacity further intensified the price competition of carbon black industry and the gross margin of carbon black had a year-on-year sharp fall.