On April 15, Red Polaroid released its 2021 annual report and 2022 first quarter report.
The 2021 annual report shows that Hongbaoli achieved operating income of 3.429 billion yuan, a year-on-year increase of 31.32%; net profit attributable to the parent was 29.7368 million yuan, a year-on-year decrease of 75.26%; basic earnings per share was 0.045 yuan per share, a year-on-year decrease of 77.50%.
According to the first quarterly report of 2022, the company achieved operating income of 714 million yuan, a year-on-year decrease of 14.48%; net profit attributable to the parent was 30.7067 million yuan, a year-on-year decrease of 213.46%; basic earnings per share lost 0.04 yuan per share, a year-on-year decrease of 200.00%.
Taixing Chemical suspends production for 2 months
According to the 2021 annual report, Hongbaoli products include propylene oxide downstream derivatives rigid foam combination polyether and isopropanolamine. The annual operating income was 3.429 billion yuan, a year-on-year increase of 31.32%, of which polyurethane polyether income was 1.885 billion yuan, a year-on-year increase of 21.38%; isopropanolamine income was 1.131 billion yuan, a year-on-year increase of 34.72%; propylene oxide and accessories income 3.37 billion.
Hong Baoli said that during the reporting period, the prices of bulk chemicals rose to a certain extent, and the price of propylene oxide remained at a high level, showing a trend of high before and then low. The company's propylene oxide is the main raw material of rigid foam polyether and isopropanolamine. The Taixing base's propylene oxide plant is produced by itself, and the insufficient part needs to be purchased externally.
In 2021, the average purchase price of propylene oxide in the market is 14,620 yuan / ton, an increase of 45.25% over the same period of the previous year. As a result, the company's product prices are also higher than the same period last year, resulting in revenue growth. At the same time, the company increases investment in research and development, actively explores domestic and foreign markets, serves customer needs, overcomes the difficulty of being hard to find by sea, coordinates resources, and ensures the supply of foreign customers; at the same time, it actively expands the domestic market of isopropanolamine. With the increase in demand for new applications, the market prosperity of one-iso and two-iso has moved up, and the price of one-iso products has also risen since July last year, and the contribution of isopropanolamine has increased. The propylene oxide produced is in response to the needs of downstream enterprises, and some are also exported.
In addition, due to the increase in the price of chemical raw and auxiliary materials, the high price of propylene oxide, and the increase in export shipping costs, the production cost of the product increased, so that the comprehensive gross profit margin of the product was only 13.08%, a year-on-year decrease of 6.75 percentage points. Taixing Chemical's loss of work stoppage from September to November 2021, etc., made the total profit drop by 93.67% compared with the previous year.
Taixing Chemical is a wholly-owned subsidiary of Hongbaoli, located in Taixing Economic Development Zone, Jiangsu Province. It is the company's production base of propylene oxide (PO) and dicumyl peroxide (DCP). Among them, the annual production capacity of propylene oxide is 100,000 tons, and the annual production capacity of DCP1# is 12,000 tons.
On September 22, 2021, Hongbaoli announced that Taixing Chemical will stop production and limit production in order to meet the requirements of "double control of energy consumption" in the region. On November 19, 2021, with the approval of relevant government departments, the PO unit successfully resumed production; on December 15, the DCP1# unit resumed production.
Propylene oxide prices down
In the first quarterly report of 2022, Hongbaoli stated that the company's profit loss was mainly due to a 34.68% decrease in the price of propylene oxide compared with the same period of the previous year, and the price including tax basically remained at a low level between 10,000 yuan / ton and 12,000 yuan / ton; in addition, Taixing The production of chemical propylene oxide plant adopts a new process, which is the first in China. The investment in the plant is large, the process needs to be continuously optimized, and the operating cost is relatively high, resulting in a loss of 70.55 million yuan for Taixing Chemical in the first quarter.
In this regard, Hong Baoli said that the company has actively carried out corresponding work and achieved corresponding results. "Continue to optimize the process of propylene oxide plant, reduce costs and improve efficiency; integrate resources and set up a team to prepare for the expansion of propylene oxide plant, and draw up plans to expand and transform existing plants to increase production capacity. Expand from 100,000 tons to 250,000 tons to reduce consumption and production costs and improve plant economy; increase investment, expand the market and product profitability of polyether and isopropanolamine products, and at the same time control cost growth, so that enterprises can return to Get on track for earnings growth.”