On the evening of October 24, Kingfa Technology released its third quarter report for 2023. In the first three quarters, the company achieved operating income of 34.291 billion yuan, a year-on-year increase of 16.97%, and net profit of 484 million yuan, a year-on-year decrease of 59.75%. The decline in net profit was mainly due to the year-on-year decline in net profit from the company's green petrochemical and medical health sectors, as well as the provision for inventory depreciation and asset impairment provisions in the third quarter.
Data show that Kingfa Technology is a leading enterprise in the field of modified plastics and new materials in China. Its products cover modified plastics, environmentally friendly high-performance recycled plastics, completely biodegradable plastics, special engineering plastics, carbon fiber and composite materials, light hydrocarbons and hydrogen energy, There are 8 categories including styrenic resins and medical and health polymer material products.
Among them, modified plastics and new materials are the core business sectors of Kingfa Technology, accounting for more than 60% of revenue from January to September this year, and are the core pillars of the company's performance. In the first three quarters of 2023, Kingfa Technology achieved sales of 1.4826 million tons of modified plastics, a year-on-year increase of 16.37%, a record high; new material sales of 124,100 tons, a year-on-year increase of 42.32%, also a record high.
In the modified plastics business, Kingfa Technology, on the one hand, relies on the synergy of the global supply chain platform, technology research and development platform and group integrated marketing platform to provide global customers with more competitive new material overall solutions, with a stable market share The improvement has overcome the impact of slower-than-expected recovery in consumer demand; on the other hand, the company continues to optimize its product structure, develop new products and new customers, and expand new application fields such as new energy vehicles, home appliances, energy storage, and photovoltaics to meet customer customization Demand and profitability continue to increase.
In terms of new materials business, in the first three quarters of this year, Kingfa Technology's special engineering plastics achieved sales of 13,900 tons, a year-on-year increase of 2.96%, of which sales in the third quarter were 5,700 tons, a year-on-year increase of 62.86%, setting a record high in a single quarter, mainly As the company's special engineering plastics have made remarkable achievements in expanding the application fields of new energy vehicles, photovoltaics, energy storage, charging piles, power batteries and other emerging industries, the market share has steadily increased.
In addition, since the implementation of the plastic restriction order, Kingfa Technology has performed outstandingly in the domestic degradable plastics industry by virtue of its advantages of multiple varieties, high quality and low cost, as well as the competitive advantages of differentiated products of PBAT+PLA, resin+modification. In the first three quarters of 2023, the company achieved sales of 100,600 tons of completely biodegradable plastics, a year-on-year increase of 45.59%, which has exceeded the full-year sales in 2022.
While modified plastics and new materials continue to maintain high growth, Kingfa Technology’s green petrochemical and medical health sectors have become the main factors dragging down performance. According to the company, on the one hand, due to the expansion of production capacity and the recovery of consumer demand that is less than expected, the prices of green petrochemical products propylene and ABS are at historically low levels; on the other hand, due to the expansion of production capacity and demand for medical and health products such as gloves and masks, the demand has gradually returned to a steady state. Due to the impact, the market experienced a periodic oversupply situation, and the company made provision for impairment of related assets in this sector in the third quarter.
According to Kingfa Technology, there are three expectations for the company’s green petrochemical loss reduction in the future: First, Ningbo Kingfa’s first polypropylene production line with an annual output of 400,000 tons has been put into operation in the third quarter of this year, and the first batch of polypropylene products has been launched in September this year. Facing the market, we will open up the integrated industrial chain and enhance product competitiveness. Second, the company continues to improve the production efficiency of polypropylene and ABS units and reduce production costs, and the operating quality of green petrochemicals will continue to improve. Third, with the recovery of downstream demand in the future and the continuous increase in the proportion of the company's polypropylene and ABS high value-added special materials, the prices of polypropylene and ABS products will rebound, and the company's profitability is expected to further improve.
微信扫一扫打赏
