On October 25, 2021, Hubei Yihua (000422) issued an announcement: Shenwan Hongyuan Song Tao, Shenwan Hongyuan Ma Xinye, Western Securities Yang Hui, Rongtong Fund Li Wenhai, Guoshou Asset Yu Li, Guohai Franklin Zhang Qionggang, Industrial Securities Global Fund Zhu Zhefeng, Zhejiang Merchant Fund Jia Teng, China Overseas Fund Shi Yi, Tongtai Fund Wang Xiu, Shen Wanling Xin Xiong Zheying, Changan Fund Xiao Yuqi, Huatai Baoxing Huang Jiali, CMB Wealth Management Peng Zhili, Centennial Asset Management Bei Yitian, Zhengxin Valley Niu Mingjun, Zhengxin Valley Zhao Yongsheng, ZhengxinGu Sun Xianyong, Caitong Asset Management Zhu Qiandong, Shangya Investment Han Hongcheng, Kaifeng Investment Chen Chao, Fuming Asset He Zhenhua, Fuming Asset Huang Houhua, Jiangsu Ruihua Investment Wang Ge, Capstone Investment Zhang Yueyi, Yude Asset Sun Jiali, Qianhai Deyi Asset Chen Sheng, Lushang Private Equity Investment Fund Management Co., Ltd. Kan Zechang, Huafu Securities Wei Zhengyu, Shenwan Hongyuan Gao Peng, CITIC self-operated Zhao Fangfang, Puhong Investment Lv Yiwen, Jinpo Asset Yunli investigated our company on October 22, 2021.
The main contents of this survey are:
Q: When did the company include Xinjiang Yihua in the scope of its consolidated financial statements? Does the company have more phosphate rock resources in the future? What is the future planned investment scale of the phosphorus industry chain cooperation project?
A: Xinjiang Yihua was originally a wholly-owned subsidiary of the Company, and in June 2018, due to serious losses due to a safety production accident, the Company transferred its controlling interest to the outside world. Xinjiang Yihua after more than two years of rectification, the fourth quarter of last year resumed production, the current production and operation situation is good, to be operated for one or two complete fiscal years, the company in a timely manner to recover the controlling interest in Xinjiang Yihua, it will be included in the scope of the consolidated statements. Xinjiang Yihua participated in a coal mine before the table, and later Xinjiang Yihua acquired the equity of other shareholders of the coal mine, and now Xinjiang Yihua is in a controlling position in the coal mine, which is an open-pit coal mine with 2.8 billion tons of reserves and an annual mining capacity of 20 million tons. The mine is very close to the location of the Yihua plant in Xinjiang and produces anthracite coal, but it can also be used to generate electricity and transport it directly to the factory with a belt, supporting the production of 600,000 tons of coal head urea in Yihua, Xinjiang. In addition, Xinjiang Yihua has 450,000 tons of calcium carbide, 1 million tons of cement (for digesting calcium carbide slag by-products), two sets of 300,000 kilowatts of thermal power generation units, and 80,000 tons of melamine production capacity. The company will carry out the layout of phosphate rock resources with the development of the industry, among which the Jiangjiadun phosphate rock in the listed company system will be invested in the joint venture company established by the company and Ningbo Bangpu after the audit and evaluation; the phosphate ore controlled by the company's major shareholder Yihua Group may be considered for incorporation into the listed company when the time is ripe in the future. The scale of investment in the Tianjiahe Industrial Park has not yet been finalized.
Q: How big is the iron phosphate project cooperation? How much is the investment? What are the advantages of the partners?
A: The two sides are still negotiating, and the scale of cooperation proposed in the early stage includes 300,000 tons of iron phosphate and 120,000 tons of nickel sulfate, which has not yet been finalized.
Q: Introduction to phosphoric acid preparation technology?
A: The company intends to do refined phosphoric acid, using mature technology on the market, and has done verification tests on the company's existing phosphoric acid products to meet the needs of industrial phosphoric acid indicators, but there is still room for improvement from food-grade phosphoric acid indicators. At present, the production capacity of a single set of refined phosphoric acid technology is 100,000 tons / year, and it is planned to have 2 sets of 100,000 tons of refined phosphoric acid, and there is about a construction cycle of one and a half years from investment to production.
Q: Will future phosphate fertilizer yields be affected?
A: According to the development of fine phosphorus chemical industry, the amount of phosphorus fertilizer will be gradually reduced. However, the phosphate fertilizer will be retained as a consumption item for slag acid, 2 tons of phosphoric acid out of 1 ton of refined phosphoric acid and 1 ton of residual acid.
Q: What are the advantages of preparing ferric phosphate and nickel sulfate in Yichang?
A: Yichang mainly has logistics advantages. Phosphoric acid raw materials include phosphate rock and sulfur, more than 90% of the current sulfur imports, we are backed by the Yangtze River shipping, compared to Guizhou has at least 500 yuan / ton freight advantage. In the same way, Yichang has the above logistics cost advantages in lithium materials and nickel materials.
Q: What are the advantages of our phosphoric acid?
A: We have three conditions for the manufacture of refined phosphoric acid: minerals, technology, and supporting facilities (that is, slag acid as fertilizer), and at present, diammonium, monoammonium and production capacity restrictions, so the company has obvious advantages in preparing refined phosphoric acid.
Q: Is the collaboration with Bump exclusive? Can I continue to cooperate with other downstream industries?
A: For the time being, it is not exclusive, and it can be negotiated and cooperated with other downstream enterprises.
Q: What is the company's future positioning in new energy materials? Specific planning of products to work with Bangpu?
A: We do supporting bangpu, we mainly do upstream, that is, from phosphate ore to iron phosphate industry chain. In the future, we will also actively conduct research on diaphragms and hexafluorophosphate. It is estimated that there will be 300,000 tons of phosphoric acid, and it is not excluded that there will be other cooperation.
Q: How to purchase nickel sulfate raw materials?
A: Purchase nickel-iron alloys as raw materials in the market.
Q: Does iron phosphate also include phosphogypsum utilization projects?
Answer: The comprehensive utilization of phosphorus gypsum is related to the development of the phosphorus chemical industry, and the future will be a key bottleneck restricting the development of the industry. The comprehensive utilization rate of Yihua phosphorus gypsum has reached 50%, the highest utilization rate in Hubei Province, mainly used for building materials industry, but also reserves some technologies.
Q: Yichang phosphate rock control policy?
A: Yichang City decentralizes the phosphate mine production target every year, does total quantity control, and mining requires tickets. In the future, mineralization will be integrated, and there will be no capacity and no tickets to produce and sell.
Q: What is the expected gas limit situation this winter?
A: Xinjiang Tianyun's recent load has dropped to about 80% due to the temporary gas restriction of early heating in the area, but the duration is only 5 days; the load caused by Lianhua Company due to civil protection has recently dropped to about 90%, and the full supply will be restored in a timely manner according to the resource situation in the later stage. The specific gas limits for this autumn and winter cannot yet be judged.
Q: How does dual control affect the company?
A: Dual control will have an impact on energy-consuming enterprises. Inner Mongolia double control production limit is the earliest, 11 furnaces can open 7 sets to meet the production needs, and now the output of 1-2 sets is limited. But the biggest problem in Inner Mongolia at present is that the price of electricity may rise. The price of Electricity in Inner Mongolia yihua comes partly from the shareholding power plant and partly from the network power, and the prices of both sides are in the process of negotiation, but they have not yet been determined. At present, Qinghai has not received news of rising electricity prices, that is, the electricity load is limited.
Q: Fertilizer exports?
A: Not exported at this time.
Q: What is the advantage of gas head urea?
A: At present, Western Gashead Urea has a cost advantage. The gas head method consumes about 700 square meters of 1 ton of urea, the price of Xinjiang Tianyun is about 1.3 yuan / square, and the price of Inner Mongolia gas is about 1.5 yuan / square.
Q: What is the grade of phosphate rock?
A: The company's phosphate rock grade is 26%-28%, the company is Yichang's first rubber phosphate rock purification technology, recently we are still studying the positive separation technology phosphorus separation.
Q: Can the company adjust the product structure?
A: The output of intermediate products and final products can be adjusted according to market needs, such as liquid chlorine and PVC production, and flake alkali and liquid alkali production.
Q: In addition to the increase in market prices, does the company have other sources of profit?
A: The company seizes market opportunities and strives to improve operational efficiency. By increasing investment in safety and environmental protection, the integrity of the restored device increased the output by 170,000 tons, of which the fertilizer company increased the output by 50,000 tons, and the Songzi fertilizer industry increased the output by 120,000 tons, which is the benefit of management. Another example is the steady and substantial increase in calcium carbide production capacity, increase production and profit. In terms of management, the company not only continues to strengthen the hard investment of Anhuan, not only according to the production standards for management, but also distinguish professional management, so that the company's technology, electrical appliances, instruments and other aspects are more safe and controllable, the next step the company will spend 3 years to carry out excellent performance management, so that the company's management ability as a whole to a higher level. These management efforts, assuming a market downturn, will show the management effectiveness it brings.
Q: What cooperation does Fluorine Chemical carry out?
A: In terms of fluorine chemicals, the company will adopt the method of cooperative development. The company currently has 33,000 tons of fluorosilicic acid, and the 20,000 tons of aluminum fluoride put into production last year are running well.
Q: What are the advances in biodegradable materials?
A: Since the national plastic restriction order was issued in January last year, degradability has been pushed to the outlet. We reached a technical agreement with the Chinese Academy of Sciences last year, which is exclusive in Hubei Province. We do this project has its own advantages, the company is located on the Yangtze River, covering the Yangtze River Basin market, supporting PTA is a very popular raw material, serious excess; adipic acid is also excessive; but the most important is BDO, this year the price has risen sharply. The raw material of BDO is calcium carbide, and the consumption is 1:1, so degradable is ultimately the competition of calcium carbide. The company has calcium carbide production capacity in Inner Mongolia, Xinjiang and Qinghai, and the competitive advantage of the industrial chain is obvious. Xinjiang's steam and coal costs are low, and the advantages of making calcium carbide are also obvious. In the future, according to the needs of the market, we will develop products such as polylactic acid.
Q: How to cultivate technical talents?
A: Three directions, fine phosphorus chemical personnel we have reserves is a strong point; behind the high-end phosphorus chemical, nickel sulfate, iron phosphate and partners to cultivate; fluorine chemical industry is the introduction of technology, under the leadership of technology to cultivate talents, we intend to establish a research institute, the future will also introduce mature talents to do research and development; the company has technical personnel in degradable materials.
Q: Does the company have an equity incentive plan?
A: Equity incentives have not yet been carried out, and now they are mainly other forms of incentives, and the company has plans for equity incentives in the next step.
Q: Does the company have any income tax? Is there a plan to reduce the debt ratio in the future?
A: There is no income tax pressure on companies. The company strives to reduce its future asset-liability ratio by increasing its own profitability and introducing equity capital.
Q: What are the company's future financing plans?
A: A refinancing may be arranged next year, possibly around solving the funding problem of the 550,000 tons of amino alcohol project.
Hubei Yihua's main business: production and sales of chemical fertilizers and chemical products.
Hubei Yihua 2021 interim report shows that the company's main revenue of 9.349 billion yuan, up 52.14% year-on-year; net profit attributable to the mother of 726 million yuan, up 367.93% year-on-year; deduction of non-net profit of 625 million yuan, up 243.93% year-on-year; of which in the second quarter of 2021, the company's single-quarter main revenue of 5.787 billion yuan, up 65.81% year-on-year; single-quarter net profit attributable to the mother of 513 million yuan, up 728.63% year-on-year In a single quarter, the non-net profit was 468 million yuan, up 344.95% year-on-year; the debt ratio was 88.85%, the investment income was 73.4947 million yuan, the financial expense was 271 million yuan, and the gross profit margin was 20.02%.
In the past 90 days, a total of 3 institutions have given ratings and 3 buy ratings; the Securities Star Valuation Analysis Tool shows that Hubei Yihua (000422) good companies are rated 2 stars, good price ratings are 0.5 stars, and valuation comprehensive ratings are 1.5 stars.