Xingfa Group: net profit of 1st half of 2022 expected to increase by 200% YOY

China’s Xingfa Group issued a prior performance announcement On July 5, expecting net profit in the first half of 2022 to reach RMB3.62 - 3.72 billion, an increase of 217.31% - 226.08% year on year, while net profit attributable to shareholders of the listed company reached RMB1.140832 billion.

According to the announcement, the net profit attributable to shareholders of listed companies in the reporting period would increase significantly over the previous year, attributable mainly to the following factors: 

Firstly, the chemical industry in the reporting period continued to boom since 2021, where the selling prices of the company’s chemical and agrochemical products such as glyphosate, phosphate ore, yellow phosphorus and phosphate fertilizer remained high, despite inevitable fluctuations. Hence, the advantages of the company’s industrial chain have been fully utilized. 

Secondly, as a benefit of the rapid development of food processing, carbon fiber and integrated circuit industries during the reporting period, the company’s fine phosphorus-sulfur chemicals such as food-grade phosphate and dimethyl sulfoxide and wet electronic chemicals like IC-grade phosphoric acid, sulfuric acid and compound liquid have been in high demand. This has significantly increased the operating efficiency and the profitability of the company. 

Thirdly, several new projects of Xingfa Group’s wholly-owned subsidiaries are brought on stream, including the annual 400,000-ton synthetic ammonia of Yichang Xingxing Lantian Technology Co., Ltd, the annual 3 million-ton low-grade collophanite dressing and further processing have been put into operation in the second and third quarters of 2021 one after another, bringing new sources of growth of profits to the company.