● Shen Yourong, a reporter of the Yangtze River Business Daily
Continuous layout, continuous breakthrough, Xingfa Group (600141. SH) industry chain is becoming more and more perfect, and its competitiveness continues to improve.
In 2020, the new crown pneumonia epidemic swept the world, and in the face of an extremely unfavorable operating environment, Xingfa Group practiced hard internal skills, actively broke through, and achieved remarkable results. The company expects to achieve a net profit attributable to shareholders of listed companies (hereinafter referred to as net profit) of more than 600 million yuan for the whole year, a record high.
The company explained that the successful breakthrough in the production process, the increase in the yield of refined phosphoric acid, the continuous release of the combined benefits of "fertilization", coupled with the production of silicone technical transformation projects, the cost has decreased, making profitability significantly improved.
The reporter of Changjiang Business Daily found that since its listing in 1999, Xingfa Group has implemented 7 fixed capital increases with the help of capital market functions, plus initial offerings and bonds, and directly raised 17.897 billion yuan. These fundraising all revolve around the industrial layout.
Nowadays, Xingfa Group has strong market competitiveness. The company's sodium hexametaphosphate production capacity is the first in the world, sodium tripolyphosphate production capacity is the first in China, and the comprehensive strength of glyphosate ranks at the leading level in China.
What is more noteworthy is that through continuous layout, Xingfa Group has built a circular economy industrial chain, which not only has a complete variety of products, but also has the advantage of environmental protection governance. At present, the company's products are exported to 110 countries and regions around the world.
Net profit doubled to a new high of 660 million
The profitability of Xingfa Group has increased significantly, and its operating performance has reached a record high.
According to the performance forecast, in 2020, Xingfa Group is expected to achieve a net profit of 605 million yuan to 665 million yuan, an increase of about 302 million yuan to 363 million yuan over the same period of the previous year, an increase of 100% -120% year-on-year. Net profit, net of non-recurring gains and losses (net profit short of non-recurring gains and losses), was approximately $621 million to $680 million, an increase of approximately $325 million to $384 million from the same period last year, or an increase of 110%-130% year-on-year.
In the first three quarters of last year, Xingfa Group achieved operating income of 15.220 billion yuan, an increase of 5.35% year-on-year, net profit of 362 million yuan, an increase of 20.32% year-on-year, and deduction of non-net profit of 355 million yuan, an increase of 21.46% year-on-year.
In terms of quarters, in the first, second and third quarters of last year, the company's operating income was 3.907 billion yuan, 5.434 billion yuan and 5.879 billion yuan, with a year-on-year change of -10.27%, 5.45% and 19.02%. In the same period, the net profit was 0.24 billion yuan, 115 million yuan and 223 million yuan, with a year-on-year change of -48.53%, 48.05% and 26.52%, and the deduction of non-net profit was 0.13 billion yuan, 100 million yuan and 242 million yuan, a year-on-year change of -65.35%, 75.03% and 22.44%.
The data shows that in the first quarter, affected by the epidemic, operating income and net profit, deduction of non-net profit have declined significantly, in the second and third quarters, with the resumption of work and production in an all-round way, the company's operating performance growth rate returned to positive, net profit, deduction of non-net profit increased significantly.
Comparing the annual performance forecast and the third quarter report, it is found that in the fourth quarter, the company expects to achieve a net profit of 243 million yuan - 303 million yuan, deducting non-net profit of 266 million yuan - 325 million yuan. The net profit and non-net profit in the fourth quarter increased significantly compared with the previous three quarters. Compared with the same period last year, the net profit in the fourth quarter increased by 18193%-22754% year-on-year, significantly exceeding expectations.
The annual profit is expected to be as high as 665 million yuan, which is the best performance of Xingfa Group in history.
Xingfa Group has been listed for 21 years, and since its listing, in addition to the decline in operating income in the year of listing, operating income has achieved 20 consecutive years of growth. In 1999, the company's operating income was 195 million yuan, and in 2019, it was 18.039 billion yuan, an increase of 91.51 times in 20 years. In the same period, compared with operating income, net profit fluctuations are more frequent, net profit in 1999 was 0.26 billion yuan, exceeded 100 million yuan in 2008, 2014 was a stage high of 494 million yuan, 402 million yuan in 2018, and fell to 302 million yuan in 2019.
In summary, in 2020, Xingfa Group achieved the brightest operating performance in history.
In view of the substantial growth in operating performance in 2020, Xingfa Group explained that Its wholly-owned subsidiary Yidu Xingfa Chemical Co., Ltd. successfully achieved a breakthrough in the wet phosphoric acid refining process, the 100,000 tons / year (discounted 100) wet phosphoric acid refining device driving stability was enhanced, the refined phosphoric acid production was gradually improved, the profit was significantly increased, and the "fertilization" combined with the benefits was continuously released.
In addition, the silicone technology transformation and upgrading project of Hubei Xingrui Silicon Material Co., Ltd., a wholly-owned subsidiary, was completed and put into operation in the third quarter of last year, and the silicone monomer production capacity increased from 200,000 tons / year to 360,000 tons / year, the unit production cost decreased significantly, and the synergy level of the silicone-glyphosate industry was further improved.
The Yangtze River Business Daily reporter noted that in addition to the decline in costs and the increase in production, the price of silicone rose in the fourth quarter was also an important factor. According to the quotation of Zhuo Chuang Information, in the fourth quarter of last year, the average price of silicone rose by 50.9% and 42.4% respectively to 25250 yuan / ton.
Raised 18 billion yuan to lay out three industrial chains
The business performance against the market reached a new high, stemming from the vitality released by the lasting industrial layout of Xingfa Group.
Xingfa Group, formerly known as Xingshan Chemical Industry General Factory, was founded in 1984, was established as Xingfa Group in 1994, and was listed on the Shanghai Stock Exchange on June 16, 1999, which is a listed company with the development, production and sales of phosphorus chemical products and fine chemical products as its main business.
The 2020 semi-annual report disclosed that Xingfa Group is a leading enterprise in the domestic phosphorus chemical industry, and after years of layout, it has formed an industrial pattern based on resources and energy, dominated by fine chemicals, and matched by related industries. At present, the company has formed three industrial chains, namely the integration of mineralization and electrification, the synergy of phosphorus and silicon salts, and the combination of mineral fertilization. The main products include phosphate ore, yellow phosphorus and fine phosphate, phosphate fertilizer, glyphosate, silicone and wet electronic chemicals, etc., the products are widely used in agriculture, construction, food industry, automobile industry, chemical industry, electronics industry and other fields.
In terms of phosphate ore, Xingfa Group's phosphate ore resource reserves and production capacity are at the forefront of the industry, with mining rights of phosphate rock resource reserves of about 461 million tons, with a production capacity of more than 5 million tons / year, in addition, the Houping phosphate mine 2 million tons / year mining project is under construction. Not only that, the company's phosphate ore mining technology is globally advanced, and the key technology of thick and gentle inclined phosphate ore body mining jointly developed has successfully solved the world-class problem of thick and slow inclined phosphate ore body mining under complex geological conditions, and effectively improved the recovery rate.
In terms of yellow phosphorus and fine phosphate, at present, the global phosphate production capacity is about 3 million tons / year, Xingfa Group now has a yellow phosphorus production capacity of more than 160,000 tons / year, fine phosphate production capacity of about 180,000 tons / year, is one of the most complete types of fine phosphorus products in China, one of the most diverse enterprises. thereinto. The production capacity of sodium hexametaphosphate is the first in the world, and the production capacity of sodium tripolyphosphate is the first in China.
In terms of glyphosate, glyphosate is the most widely used herbicide variety in the world, accounting for about 30% of the herbicide market share. In 2019, global glyphosate production capacity was approximately 1.1 million tonnes. Taisheng Company, a holding subsidiary of Xingfa Group, currently has a production capacity of 180,000 tons/year of glyphosate.
In terms of silicones, Hubei Xingrui, a wholly-owned subsidiary of Xingfa Group, has a silicone monomer production capacity of 320,000 tons / year, based on the advanced production technology and the effective coordination with the glyphosate plant in Yichang Park, the silicone production cost control ability ranks the forefront of the industry.
In addition, ammonium phosphate, wet electronic grade chemicals, etc., Xingfa Group has certain advantages.
The reporter of Changjiang Business Daily found that the biggest advantage of Xingfa Group is the advantage of the industrial chain. For example, mineral fertilization combined with the industrial chain, the company's refined acid self-supply is used to produce phosphate, and the replacement of the original thermal method of yellow phosphorus to achieve an increase in sales of yellow phosphorus. At the same time, the company can use the associated products of wet refined acids to produce ammonium phosphate, thereby reducing the production cost of ammonium phosphate. For example, glyphosate, its own supporting 100,000 tons / year glycine production capacity, the company's headquarters and subsidiaries have a large-scale yellow phosphorus production capacity, can be supplied to the nearest Taisheng company. The hydrochloric acid produced by-product of the silicone plant in Yichang Park is also necessary for glyphosate production. In addition, the silicone installation in the Yichang park can be effectively consumed. The phosphorus ore, water and electricity necessary for the above production can be self-supplied by Xingfa Group.
The reporter of Changjiang Business Daily found that since the listing, Xingfa Group has repeatedly implemented financing through fixed increases and bond issuance to promote the annual layout of the above industries. Up to now, the company has implemented 7 fixed increases of 8.009 billion yuan, bond financing of 9.7 billion yuan, plus the initial public offering of 188 million yuan, a total of 17.897 billion yuan.
From 2018 to 2020, the company's increase in capital is mainly used for the construction of Yidu Xingfa's new 3 million tons / year low-grade gum phosphate ore processing project, and the annual output of 60,000 tons of ultra-high purity electronic grade chemicals for chips.
Editor-in-charge: ZB
This article originated from the Yangtze River Business Daily