Xingfa Group’s 2021 net profit increases significantly

Hubei Xingfa Chemical Group Co., Ltd issued its 2021 annual performance preannouncement on January 6, showing an expected increase in net profit attributable to the listed shareholders in 2021.

The net profit was between RMB 4.2 billion and 4.4 billion, a year on year rise between 573.14% and 605.19%. After deducting non-recurring gains and losses, the company expects a net profit attributable to listed shareholders of RMB 4.45 billion to 4.65 billion in 2021, an increase of 604.05% to 635.70% year on year.

The sharp increase in net profit in the reporting period over the previous year is due to various reasons, Firstly, the economic recovery after the pandemic with the chemical industry ushered in a booming cycle during the reporting period. Prices of the company’s major products such as organosilicon, glyphosate, dimethyl sulfoxide and yellow phosphorus rose sharply, resulting in much higher profits. 

Due to the favorable situation, the company actively grasped the market opportunities to maximize production and operation, during which the main equipment could operate stably and at full load. As a result, the company’s industrial chain of “integration of mineral, electrification and chemical,” “synergy of phosphorus, silicon and salt” and “integration of mineral, fertilizer and chemical” were fully utilized.

Secondly, in the reporting period, the company’s three-million-ton low-grade collophanite dressing and advanced processing project, began production under a non-public fundraising program after a successful trial run. Also, the 400,000-ton synthetic ammonia project of Yichang Xingxing Blue Sky Technology Co., Ltd, the company’s share-participated company, was successfully launched at the end of the second quarter of this year. These projects brought new sources of profit growth to the company.

Thirdly, during the reporting period, the company’s electronic-grade chemical marketing progressed substantially. The sales of high value-added products such as electronic-grade phosphoric acid, sulfuric acid and mixture liquid for semiconductor customers increased significantly, greatly contributing to the operation performance.