Chengzhi Co.Ltd(000990) 419 released the annual report for 2021, and the company achieved an operating revenue of 121839156 million yuan, an increase of 25.20% year-on-year; The net profit attributable to the shareholders of the listed company was 1008442300 yuan, a year-on-year increase of 184.01%; Deduct non net profit of 1066834700 yuan, with a year-on-year increase of 209.58%. According to the annual reports over the years, the company’s revenue exceeded 10 billion yuan for the first time in 2021, and its net profit also hit a record high.
In 2021, with the normalization of epidemic prevention and control and the recovery of economy outside China, the market demand for Chengzhi Co.Ltd(000990) main products will be released rapidly. The company continues to steadily implement the “one body and two wings” development strategy with clean energy as the core and semiconductor display materials and life medicine as the “two wings”, and its main business continues to maintain steady operation and good development trend. Among them, the profit of clean energy products increased significantly due to the overall impact of the sharp increase in the price of bulk chemical raw materials. At the same time, benefiting from the high business cycle of the semiconductor display industry, the production and sales of liquid crystal display materials and products are booming, and the profit continues to improve.
Affected by the provision for impairment and the shutdown of Chengzhi Yongqing, the main subsidiary, Chengzhi Co.Ltd(000990) 2021 suffered a loss in the fourth quarter. During the reporting period, the company made provision for impairment of various assets of 2738841 million yuan, reducing the net profit attributable to shareholders of the parent company in 2021 by 2529366 million yuan. At the same time, the methanol market at the raw material end continued to rise in a wide range in 2021, while the overall weak operation of the olefin market caused the price increase of raw materials of Chengzhi Yongqing, a subsidiary, to far exceed the price increase of downstream products. In the first half and second half of 2020, the average purchase price including tax of methanol is 190971 yuan / ton and 190342 yuan / ton respectively; In the same period of 2021, the average methanol purchase price including tax rose to 259083 yuan / ton and 282129 yuan / ton. At the same time, affected by the power and production restriction policy of “double control of energy consumption”, the subsidiary Chengzhi Yongqing Shanghai Pudong Development Bank Co.Ltd(600000) T / a MTO unit temporarily stopped production in the fourth quarter, resulting in a large loss of production capacity of diolefins (ethylene + propylene). In 2021, Chengzhi Yongqing’s operating revenue accounted for 28.05% of the company’s operating revenue and contributed negatively to the company’s annual net profit.
Chengzhi Co.Ltd(000990) other major subsidiaries performed well. During the reporting period, the net profit of the subsidiary Nanjing Chengzhi hit a record high. In the first three quarters, the butyl octanol product market was at a high level. Nanjing Chengzhi actively grasped the market opportunity, dynamically adjusted the product sales rhythm, increased the production and sales of butyl octanol products, went all out to maximize benefits, and better completed the annual production and operation objectives; The sales revenue and net profit of Shijiazhuang Chengzhi Yonghua increased significantly compared with the average year of 2020. The sales of TFT-LCD continued the good momentum in 2020, and the sales volume of TFT-LCD liquid crystal materials increased by about 41.11% year-on-year. At the same time, the company has actively overcome the pressure of epidemic situation, rising prices of raw materials and fuel power. Various production indicators of D-ribose products in the life technology business segment have reached the best level in history, with an output of more than 1000 tons, fully ensuring the market demand.
Chengzhi Co.Ltd(000990) after combing the main business and judging the future development trend, the overall development strategy of “one body and two wings” has been defined. “Integration” refers to the clean energy industry with Nanjing Chengzhi and Chengzhi Yongqing as the core, “two wings” refer to the semiconductor display material industry with Beijing Chengzhi Yonghua and Shijiazhuang Chengzhi Yonghua as the core, and the life medical industry with D-ribose and industrial marijuana as the core. The company said that it would combine existing resources, seek industrial breakthrough, high-quality technology sources and partners in a broader technical field and market scope, deeply subdivide industries, constantly strengthen and establish the company’s leading position in relevant business markets, further strengthen the company’s existing resource allocation and form a better industrial cluster effect, Lay the foundation for the company to develop into an international high-tech enterprise group with core competitiveness.
