Cangzhou Dahua’s sales of 2.2 billion TDI and PC sales in the first half of the year maintained growth

In the first half of 2023, Cangzhou Dahua realized operating income of 2.23 billion yuan, a year-on-year increase of 3.12%; net profit attributable to the parent company was 121 million yuan, a year-on-year decrease of 23.89%, and net profit attributable to the parent company after deducting non-existing expenses was 123 million yuan, a year-on-year decrease of 21.81%; The net cash amount was 304 million yuan, a year-on-year increase of 50.53%; the basic earnings per share was 0.2915 yuan per share, a year-on-year decrease of 23.43%.

Cangzhou Dahua’s main products are TDI (toluene diisocyanate), liquid caustic soda (sodium hydroxide liquid caustic) and PC (polycarbonate). The increase in operating income mainly came from the increase in the sales volume of TDI and PC products. In the first half of 2023, the production and sales volume of Cangzhou Dahua TDI will be 84,459 tons and 83,061 tons respectively, with sales revenue of 1.318 billion yuan; the production and sales volume of ionic membrane caustic soda will be 256,500 tons and 170,300 tons, with sales of 140 million yuan The production and sales of PC were 48,000 tons and 43,100 tons respectively, with sales of 562 million yuan.

According to the statistics of Maihua Plastic Research Institute, Cangzhou Dahua has a TDI production capacity of 150,000 tons. At present, there are 5 domestic TDI product manufacturers, namely Shanghai Covestro, Shanghai BASF, Wanhua Chemical, Cangzhou Dahua, Gansu Yinguang , China’s TDI production capacity will be about 1.47 million tons in 2023.

The TDI market enters 2023, and the TDI market mainly revolves around changes in supply and demand. First, the recovery of market demand is significantly lower than expected, and the production consumption of downstream factories is reduced; second, the production capacity of the supply side increases. The impact is obvious, and the downstream mostly adopts a wait-and-see attitude to wait for more news from the market. Cangzhou Dahua combines the actual market conditions, while stabilizing the sales share in the short-distance high-profit areas of Beijing, Tianjin, Hebei, Shandong and Henan, and then radiates to the main consumption areas of East China and South China, where TDI factories are highly competitive, to increase product market share and occupation Spend. Combined with the market situation, timely increase the profit of the enterprise through the sales method of long-distance price increase.

According to statistics from Buy Chemical Research Institute, Cangzhou Dahua currently has a PC production capacity of 100,000 tons, accounting for 2.9% of the total domestic production capacity. In the first half of 2023, the total domestic PC production capacity will reach about 3.43 million tons per year, an increase of more than 24% compared with the same period last year. The domestic PC centralized capacity expansion has come to an end, and the industry has entered a cycle of digesting stock capacity. As upstream raw materials have entered a period of concentrated capacity expansion Therefore, the profitability of the PC industry has improved compared with the past few years, and the utilization rate and output of domestic production capacity have also increased significantly, and the contradiction between supply and demand still exists.

Cangzhou Dahua attaches great importance to the circulation of inventories. In combination with the actual sales, it insists on focusing on the surrounding areas, and adheres to the sales principle of “sprinkling water first and then packing in barrels, so that it can be short-distance but not far away”. Through refined sales, it speeds up the product turnover rate and reduces Company funds are under pressure. The minimum inventory of TDI barrels has been ensured, laying the foundation for the safe and smooth operation of the enterprise.

The caustic soda industry is a basic chemical raw material for the national economy. Cangzhou Dahua continued to maintain stable production. During the reporting period, it sold a total of 170,000 tons of liquid caustic soda (not discounted).

Thanks to the substantial expansion and profit sharing of bisphenol A, the profits of the PC industry will improve in 2023. The production capacity of phenolic ketone, bisphenol A and epoxy resin will maintain a trend of substantial expansion, and as one of the few products in the industry chain whose capacity expansion is slowing down, the cost of PC is expected to remain low. In the first half of 2023, domestic PC production showed a monthly increase, significantly higher than the same period in history, and the average capacity utilization rate reached 68.27%. Cangzhou Dahua pays close attention to the price trend of related products in the domestic and international markets. Through technological and management innovation and improvement, it adopts effective measures to stabilize production and reduce costs, scientifically grasp market opportunities, and rationally arrange production to minimize the impact of product price fluctuations on operations. .

Looking forward to the second half of the year, Cangzhou Dahua believes that the domestic TDI supply capacity is far greater than the market demand, and the contradiction between supply and demand is prominent, and there will be no obvious improvement in the short term. Affected by public health incidents, demand in the downstream industrial chain remains sluggish. Facing the current market situation, Cangzhou Dahua will pay close attention to the changes in the prices of related products in the domestic and international markets, use years of accumulated market experience, scientifically predict the market, and reasonably arrange production schedules to minimize the impact of commodity price risks on the company’s operations. Influence.

Due to changes in supply and demand and industry competition in the PC market, prices fluctuate greatly. Cangzhou Dahua will maintain stable production, continuously optimize product quality through technical and management improvement methods, actively expand into the field of special PC and mid-to-high-end modified PC, pursue win-win benefits with customers, and promote better development of the company.