Financial Associated Press (Hebei, reporter Yuan Xinduo) news, on the evening of April 27, Jinniu Chemical (600722. SH) released its 2020 Annual Report. During the reporting period, the company was affected by the epidemic and the decline in international crude oil prices, and its operating income fell by nearly 50% and its net profit fell by nearly 70%. Compared with last year's downturn, for the development of the industry this year, some analysts pointed out that the methanol industry in the first quarter of 2021 was stable and good, and the second quarter was afraid of pressure.
The company achieved operating income of 404 million yuan during the reporting period, down 48.68% from the same period of the previous year; net profit attributable to shareholders of listed companies was 9.9259 million yuan, down 68.24% from the same period of the previous year; net profit after deducting non-recurring gains and losses was 9.2978 million yuan, down 69.90% from the same period last year.
The company's main business is the production and sales of methanol, and in 2020, due to the epidemic situation, the sharp decline in crude oil prices and other factors, the company's product volume and price have shown a downturn. Through comparison, the reporter of the Financial Associated Press found that in 2020, the company achieved an annual output of 173,400 tons of methanol, down 20.71% from the same period; at the same time, the average price of methanol in 2020 was 1699.27 yuan / ton, nearly 380 yuan / ton less than the same period. Reflected in terms of revenue, the company's Q1 to Q4 operating income in 2020 has decreased compared with the same period, of which the declines in Q1, Q2 and Q3 are 49.14%, 46.29% and 64.70% respectively.
With the effective control of the epidemic, downstream demand has gradually recovered, and the profits of the methanol industry have been repaired. Xue Fei, an analyst in the methanol industry of Zhuo Chuang Information, said in an interview with reporters that due to the continuous growth of downstream profits, the domestic methanol industry was stable and good in the first quarter of 2021, the price center of gravity slowly shifted to a high level in the past year, and the industry's profitability gradually improved. The continuous improvement of the industry has led to the growth of the company's performance. According to the operating data of the first quarter of 2021 released by the company in the same period, the company achieved methanol sales of 55,000 tons in the first quarter, with an average selling price of 2161.96 yuan / ton, an increase of 16.06% over the same period.
Regarding the future price trend of methanol, Xue Fei further pointed out, "From the supply side, there is more news of methanol plant maintenance and recovery in April, and the output is expected to increase slightly; on the demand side, nearly 60% of the downstream construction in March has been at a high level in recent years, and the room for continuous improvement is limited." The key to driving the stability of the methanol market is the continuous improvement of the profitability of the downstream industry, and there is some pressure on the methanol market in the face of changes in its own supply and demand and the increase in the resistance to the continuous improvement of downstream profits. ”
The financial associated press reporter noted that in addition to the basic chemical field, the company has planned to lay out in the field of pharmaceutical intermediates. According to the announcement, the company plans to invest in the establishment of a wholly-owned subsidiary in the Kailu County Industrial Park of Tongliao City to build a 2,000 tons/year D-phenylglycine and 3,000 tons/year phenylacetic acid project. According to the reporter's understanding, the extension product of D-phenylglycine and phenylacetic acid are important intermediates in penicillin antibiotic products, and the project is planned to be built for 24 months.