With strong demand for wet electronic chemicals, Xingfa Group expects its net profit in the first quarter to increase by 379.35% year-on-year

On March 27, Xingfa Group issued an announcement on the expected increase in performance in the first quarter of 2022. According to preliminary calculations by the financial department, the net profit attributable to shareholders of the listed company in the first quarter of 2022 is expected to be approximately RMB 170,000 million, an increase of RMB 134,535.36 million over the same period last year, a year-on-year increase of 379.35%. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses in the first quarter of 2022 is expected to be approximately RMB 168,000 million, an increase of RMB 132,937.23 million over the same period last year, a year-on-year increase of 379.14%.

Xingfa Group stated that the net profit attributable to shareholders of the listed company during the reporting period increased significantly compared with the same period last year, mainly due to the combined impact of the following factors:

First, during the reporting period, the chemical industry as a whole continued the boom cycle since 2021, and the sales prices of the company's main products such as glyphosate, yellow phosphorus, and phosphate fertilizers continued to remain high. The company actively seized favorable market conditions, scientifically organized production and operations, and fully utilized the advantages of the "integration of mining, electricity and chemistry", "synergy of phosphorus, silicon and salts" and "integration of mining, fertilizer and chemistry" industrial chains.

Second, the 400,000 tons/year synthetic ammonia project of the company's shareholding enterprise Yichang Xingxing Blue Sky Technology Co., Ltd. and the 3 million tons/year low-grade phosphate ore beneficiation and deep processing project of its wholly-owned subsidiary Yidu Xingfa Chemical Co., Ltd. were successively completed and put into production in the second and third quarters of 2021. During the reporting period, the company's production and sales of phosphate fertilizers increased significantly compared with the same period last year.

Third, benefiting from the rapid development of downstream carbon fiber and integrated circuit industries, the company's new chemical materials such as dimethyl sulfoxide and wet electronic chemicals were in strong demand during the reporting period, and its profitability increased significantly compared with the same period last year, and its product benefits increased significantly.