Haikou, China – China’s largest natural rubber maker Hainan Rubber Group posted €8 million (61 million yuan) net profit in 2016 compared to €134 million net loss in 2015.

“Natural rubber price over the first three quarters of 2016 continued the slump in previous years, but the fourth quarter saw it rebound,” said the company’s annual report. Revenue for the year rose by 6% to €1.2 billion.

More stringent cost control and asset disposal also contributed to the turn around, said the report.

In 2016, Hainan Rubber finished the development of clay-reinforced natural rubber and rubber materials for jumbo tires.

The company sold 750,000 tonnes of natural rubber last year looks to raise the number to 800,000 in 2017. This year it also hopes to close the acquisition of Singapore’s R1 International, the world’s biggest natural rubber trader, which would bring the estimated sales volume to 1.6 million tonnes.

Selling directly to the world’s top ten tire makers, Hainan Rubber saw its overseas main business sales reduced by 38% to €185 million in 2016. Its gross margin for overseas markets.