Richful Lube Additives, a major player in the Chinese lubricant market, announced impressive financial results in 2022. The company’s lubricant additives operating income surged by 188% and its net profit spiked by more than 180% in the fourth quarter compared to the same period in 2021. According to the company’s stock exchange filing, lubricant additives accounted for 94% of the ¥3 billion operating income, resulting in a 31% gross profit margin. Richful attributed this success to its rapidly growing lubricant additive sales, which saw a 112% increase in sales volume to 143,054 tons and a 104% increase in production scale to 151,042 tons, along with an increase in inventory by 64% to 20,483 tons.
Richful Lube Additives, a Chinese lubricant additives manufacturer, has reported strong financial results for 2022, with significant growth in both operating income and net profit. In 2022, the company’s lubricant additives operating income rose by 188%, reaching ¥2.9 billion, compared to ¥996.1 million in 2021.
Lubricant additives accounted for 94% of the company’s total operating income in 2022, up from 92% in 2021, resulting in a gross profit margin of 31%. The company’s lubricant sales volume surged by 112% to 143,054 tons, while production increased by 104% to 151,042 tons, and inventory rose by 64% to 20,483 tons. For the full year 2022, Richful’s overall net profit reached ¥588.1 million, up by 193% compared to ¥201 million in 2021.
The company’s overall operating income surged 182% to ¥3 billion for the year, compared to ¥1.1 billion. In the fourth quarter, Richful’s net profit and operating income surged by 243% and 148%, respectively, compared to the same period in 2021.
Richful’s Xingxiang, Henan province headquarters houses a plant with a production capacity of 100,000 metric tons per year for additive components and 15,000 t/y in packages. The company specializes in providing packages for passenger car engine oils, heavy-duty engine oils, and anti-wear hydraulic oil packages.
In its financial report, Richful highlighted that China’s demand for lubricant additives has been on the rise, with an average annual growth rate of 4.2% from 2013 to 2018. The company believes that with the continuous growth of China’s motor vehicle market and the acceleration of industrialization, domestic demand for lubricant additives will maintain a relatively high growth rate. The Shanghai Lubricating Oil Industry Association predicts that by 2023, demand for lubricant additives in China will increase to 1.12 million tons.