As a leading enterprise in China’s phosphorus chemical industry, Hubei Xingfa Chemicals Group Co.Ltd(600141) ( Hubei Xingfa Chemicals Group Co.Ltd(600141) ) recently disclosed performance express shows that the company achieved a net profit of about 4.2 billion yuan in 2021, with a year-on-year increase of nearly six times, setting a record for the highest profit in the company’s history. At the same time, the company also diversified its layout and developed projects such as wet electronic chemicals and iron phosphate projects around the phosphorus chemical industry.
The performance express shows that Hubei Xingfa Chemicals Group Co.Ltd(600141) achieved an operating revenue of 23.608 billion yuan last year, an increase of nearly 30% over the same period last year. After restatement, the net profit attributable to shareholders of listed companies was 4.238 billion yuan, an increase of 581.95% over the same period last year; The net profit of the company after deducting non profits was 4.477 billion yuan, an increase of about 6 times year-on-year; The basic earnings per share reached 3.79 yuan / share.
Further, Hubei Xingfa Chemicals Group Co.Ltd(600141) achieved 1.75 billion yuan in the fourth quarter of last year, an increase of 5.68 times over the same period of last year, with a month on month growth rate of nearly 30%, and the growth rate fell somewhat; In addition, the company’s contract liabilities last year were 700 million yuan, down from the previous year.
For the overall profit growth last year, Hubei Xingfa Chemicals Group Co.Ltd(600141) said that the company’s main products, such as organosilicon and glyphosate, were affected by market supply and demand. The sales price rose sharply year-on-year, and the profitability was significantly enhanced. The advantages of the company’s industrial chain of “integration of mining and electrification”, “coordination of phosphorus and silicon salts” and “combination of mining and fertilizer” were brought into full play.
According to the data, Taisheng company, a Hubei Xingfa Chemicals Group Co.Ltd(600141) holding subsidiary, has a capacity of 180000 T / a glyphosate, ranking first in China; In addition, the company is one of the enterprises with the most complete product categories and the most varieties in the fine phosphate industry.
Hubei Xingfa Chemicals Group Co.Ltd(600141) pointed out that last year, the 3 million T / a low-grade collophanite beneficiation and deep processing project of Yidu Xingfa chemical, a wholly-owned subsidiary of the company, and the 400000 T / a synthetic ammonia project of Yichang xinglantian technology, a joint-stock company, were completed and put into operation during the reporting period, bringing new profit growth points to the company.
In addition to the main phosphorus chemical industry, Hubei Xingfa Chemicals Group Co.Ltd(600141) is also actively expanding the semiconductor circuit and developing electronic grade chemicals.
Wet electronic chemicals are one of the key basic chemical materials in the production process of VLSI, display panels and Cecep Solar Energy Co.Ltd(000591) batteries, mainly in Europe, America, Japan, Korea and other countries and Taiwan, China. With the development of China’s local semiconductor industry, the demand for nearby supply and supporting services determines that the localization of wet electronic chemicals production has become the general trend.
Hubei Xingfa Chemicals Group Co.Ltd(600141) said that last year, the sales volume of high value-added products such as electronic grade phosphoric acid, sulfuric acid and mixed solution for semiconductor customers increased significantly, and the operating performance increased significantly. This business is mainly undertaken by Xingfu electronics, a holding subsidiary of Hubei Xingfa Chemicals Group Co.Ltd(600141) company.
According to the semi annual report, Xingfu electronics has built a capacity of 30000 tons / year of electronic grade phosphoric acid, 20000 tons / year of electronic grade sulfuric acid and 30000 tons / year of electronic grade etching solution. The capacity scale ranks among the forefront of the industry, and the product quality is generally at the international advanced level. The products have been supplied in batch to Tailian power, Semiconductor Manufacturing International Corporation(688981) , Huahong Hongli, SK Hynix, grosfande, Changjiang storage, TSMC Changxin storage and other well-known semiconductor customers at home and abroad. Xingfu electronics is building a 40000 t / a IC grade sulfuric acid project, which is planned to be put into operation by stages before the first half of 2022. In addition, the 15000 T / a IC hydrofluoric acid plant of Xingli electronics, an associate of the company, has been completed and put into operation, and the introduction of customers is being accelerated.
In terms of capital operation, Hubei Xingfa Chemicals Group Co.Ltd(600141) has started the spin off and listing of Xingfu electronics. In December last year, the company disclosed that it plans to introduce 15 strategic investors such as the second phase of the national integrated circuit industry investment fund in a non-public agreement, with a total capital increase of 768 million yuan.
In addition, Hubei Xingfa Chemicals Group Co.Ltd(600141) has also entered into new energy lithium batteries in recent years, and plans to build 500000 tons of iron phosphate, 500000 tons of lithium iron phosphate and related supporting projects together with Zhejiang Huayou Cobalt Co.Ltd(603799) and Zhejiang Huayou Cobalt Co.Ltd(603799) , including 100000 tons of iron phosphate project in phase I Hubei Xingfa Chemicals Group Co.Ltd(600141) said that as China’s top fine phosphorus chemical enterprise, the reserves of phosphate rock resources are rich, and the preparation process of refined phosphoric acid is mature. Raw materials such as refined phosphoric acid, hydrogen peroxide and liquid ammonia required for the production of iron phosphate have been self-supporting, and iron raw materials can be purchased nearby. The company’s layout of new energy lithium battery industry has the advantage of natural raw material supporting.
