Chenhua expects profit in the first half of the year to fall by more than 60%, and the selling price and gross profit are both lower than the same period last year

According to the semi-annual performance forecast disclosed by Chenhua Co., Ltd., the profit of Chenhua Co., Ltd. will decline in the first half of 2023. Net profit attributable to the parent is expected to be between RMB 22.5536 million and RMB 31.574 million, a decrease of 65% to 75% compared with RMB 90.2142 million in the first half of 2022; 75.18%-86.03%.

Regarding the year-on-year decline in net profit, Chenhua explained that in the first half of 2023, due to the sluggish economic situation at home and abroad and the intensified competition in the industry, the selling prices and gross profit margins of most of the company’s products were lower than the same period last year, so the net profit attributable to the parent company Profit and net profit attributable to the parent after deducting non-existing expenses also decreased correspondingly compared with the same period last year.

Chenhua Co., Ltd., founded in 1995, is an important production base for surfactants, flame retardants, silicone rubber and other products in East China. The production scale of alkyl glycosides and flame retardants ranks among the top in China. In February 2017, the company was listed on the GEM of Shenzhen Stock Exchange.

. In 2022, the operating income will be 1.078 billion yuan, the total assets will be 1.352 billion yuan, the net profit attributable to shareholders of listed companies will be 119 million yuan, and the R&D investment will account for 3.95% of operating income.

The industry of Chenhua Co., Ltd. is the C26 chemical raw material and chemical product manufacturing industry in the manufacturing industry. The company’s products can be divided into three series of surfactants, flame retardants and silicone rubber, all of which belong to the new field of fine chemical products. The company focuses on the field of fine chemical new materials, and concentrates on small-batch, high-performance specialty products. The company’s fine chemical new material products are mainly used as additives, which can improve product processing performance, improve product quality, or endow products with certain unique application properties. Because of its wide range of applications, it is known as “industrial monosodium glutamate”.

Chenhua is mainly engaged in the R&D, production and sales of fine chemical new material series products with oxyolefins, fatty alcohols, siloxanes, etc. as the main raw materials. According to the vulcanization method, the company’s silicone rubber products can be divided into high-temperature vulcanized silicone rubber and room temperature vulcanized silicone rubber.

In 2022, the output of Chenhua’s flame retardant products will be 13,600 tons, the sales volume will be 14,100 tons, and the operating income will be 158 million yuan, accounting for 14.62% of the total operating income; the output of surfactant products will be 56,700 tons, and the sales volume will be 54,900 tons, operating income was 816 million yuan, accounting for 75.71% of the total operating income; the output of silicone rubber products was 4,800 tons, the sales volume was 4,800 tons, and the operating income was 99 million yuan, accounting for 9.23% of the total operating income. The operating income from foreign sales was 159 million, accounting for 14.78% of the total operating income.

By the end of 2022, the company and its subsidiaries have obtained 56 national patents.