Levima Advanced Materials Corporation(003022) due to the capacity expansion and transformation of EVA unit, the net profit in the first quarter decreased year-on-year

On April 16, Levima Advanced Materials Corporation(003022) released the report for the first quarter of 2022. Affected by the planned technological upgrading, capacity expansion, transformation and parking of EVA device, the company achieved an operating revenue of 1.556 billion yuan, a year-on-year decrease of 13.73%, and the net profit attributable to shareholders of listed companies was 107 million yuan, a year-on-year decrease of 60.14%.

According to the Levima Advanced Materials Corporation(003022) first quarter report, the main reasons for the year-on-year decrease in net profit are as follows: (1) according to the plan, the company implemented the fund-raising project “technology upgrading and transformation project of tubular tail of EVA unit” in the first quarter, with the shutdown of EVA unit for 28 days and the synchronous shutdown of MTO, PP, EO, EOD and other units for 7-15 days, so as to carry out the construction and maintenance of the connection between carbonate unit and UHMWPE unit and utility system. Affected by the decrease of product production and sales and the increase of related maintenance expenses, the net profit in the reporting period decreased by about 163 million yuan; (2) The price of main raw materials increased significantly year-on-year, affecting the net profit of about 64 million yuan in the reporting period.

According to the company’s first quarter report, by the end of the first quarter, Levima Advanced Materials Corporation(003022) eva unit technology upgrading and capacity expansion transformation had been successfully completed. After the completion of this capacity expansion and transformation, the company expects the output of EVA and other major products to increase year-on-year in 2022. At present, Levima Advanced Materials Corporation(003022) all units are in full load operation, and the products remain in full production and sales. The price of EVA products has increased by more than 30% over the beginning of the year. It is expected to maintain a high prosperity and good profitability for a long time in the future.

With the proposal of the national dual carbon goal, vigorously developing new energy such as photovoltaic and wind power is an inevitable measure for China’s energy transformation and development. Since this year, the construction of Fengguang large base and distributed photovoltaic power generation projects have been in full swing. The new installed capacity of 1-2 moonlight volts has reached 10.86gw, a year-on-year increase of 234%. It is understood that the recent photovoltaic market demand continues to improve, the adhesive film and module manufacturers maintain a high operating rate, the main downstream demand of EVA is strong, the supply of EVA is tight, and the product price continues to rise. According to Zhuo Chuang information, the ex factory price of Levima Advanced Materials Corporation(003022) eva this week continued the recent upward trend, with the latest quotation of ul00628 of 26100 yuan / ton, ul00428 of 26300 yuan / ton and ul01833 of 27600 yuan / ton Levima Advanced Materials Corporation(003022) as a major supplier of photovoltaic adhesive film particles in China, it is expected to continue to benefit from the high prosperity of the industry in the future.

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