Yangnong Chemical’s predicted 2022 profitability ranging between RMB1.711 – 1.955 billion, up 40%-60% YOY

On January 21, Jiangsu Yangnong Chemical announced its expected performance increase in 2022, where the net profit attributable to the owners of the parent company is expected to reach RMB1.711 billion - RMB1.955 billion, which will be an increase of roughly RMB489 million to RMB733 million over last year, at an increase of 40% to 60% year on year.

It is estimated that the net profit attributable to the owners of the parent company after deducting non-recurring profit and loss will be RMB1.815959 billion to RMB 2.0470489 billion, which will be an increase of RMB682.3496 million to 909.7995 million over last year, at an increase of 60% to 80% year on year.

Main reasons for the performance achievement:

(1) Change in main business 

During the reporting period, the company seized the market opportunity of the price rebound of major products to actively develop market and to cope with the adverse impact of the COVID-19, having properly dealt with COVID-19 prevention and control requirements while maintaining production activities. Meanwhile, the company could speed up the project operation of the Youjia Phase IV, where the production run supported sales and ensured supply to meet the market demand, thus also contributing to the performance increase during the reporting period.

(2) Change in non-recurring profit and loss.

During the reporting period, non-recurring gains and losses were mainly generated from foreign exchange forward settlement. The company properly dealt with the impact from foreign exchange fluctuations and lock up the exchange rate fluctuations through forward foreign exchange settlement.