Summary of Xinghua’s Development in 2021

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Summary of Xinghua’s Development in 2021 Author/Source: Xinghua Group Date: 2022-02-10 Clicks: 13 \"Operating revenue increased by 50.56% on a year-on-year basis\"； The total profit reached 450% of the annual budget target, with all key indicators achieving their best levels ever ； The United Alkali Center and Fluorosilicon Chemical Company have achieved full production capacity and compliance for the first time ； Production volumes of products such as methylamine, ethanol, and soda ash reached record highs ； The gasification unit operated continuously for 355 days, setting the best operating record since its initial commissioning… Behind this sustained high growth lies the result of Xinghua Company’s efforts toward high-quality development in recent years. We have integrated production, supply, and sales into a cohesive whole. By actively overcoming various challenges such as pandemic-related restrictions, the preparations for the 14th National Games, production halts due to severe air pollution, and the inventory-free model that requires production to be adjusted according to sales demand, we have continued to strengthen our production management system centered around scheduling. The management of unplanned shutdowns has been highly effective, with a 31% reduction compared to the previous year. The production of our key products was carried out successfully, achieving results that were hard-won. ”Xue Hongwei, the head of the production department at Xinghua Company, said with emotion while reporting on the annual production performance at the monthly business review meeting in December of the previous year. Over the past year, Xinghua Company’s production facilities have operated with stability, efficiency, and high quality; 2.26 million tons of various chemical products were produced throughout the year. The company’s profitability has improved significantly, resulting in a favorable situation characterized by simultaneous progress in production and sales, along with a steady increase in product quality. At the same time, the company’s supply and production departments work in close coordination to optimize raw material inventory levels. It has adopted a dual supply model that includes electronic bidding and long-term contracts, taking full advantage of bulk purchasing advantages. Throughout the year, it supplied nearly 2 million tons of coal and salt, as well as 180 million cubic meters of natural gas. In addition, by strengthening the link between production and sales and deepening the integration of business operations and finance, the finance department promptly calculates the marginal contribution and marginal profit of key departments, thereby guiding the production system to adjust the product structure flexibly. The sales department keeps a close eye on policies and market trends, identifies target markets for key products such as methamine, DMF, ethanol, and MAC, and sells large quantities of these best-selling products to gain a competitive advantage in the market. *The annual sales volume of AO acid an was 401,000 tons, with a price increase of over 30% ； Sales of products such as liquid ammonia, methanol, and soda ash totaled 1.07 million tons, with the average selling price increasing by over 50% throughout the year. The sales prices of soda ash, ammonium chloride, and heavy alkali all reached record highs, and the simultaneous rise in both volume and price of these products contributed to strong growth in performance. Multiple efforts to boost quality and efficiency: Over the past year, Xinghua Company has firmly embraced the concept of refined management, remained committed to its goals of improving quality and efficiency throughout the year, strived to meet industry standards, increased investment in technological upgrades, worked to increase revenue while reducing costs, and continuously built up momentum and unleashed vitality to achieve accelerated high-quality development. In the dispatch room of Xinghua Company’s caustic soda production facility, the reporter saw neatly arranged record books that detailed data such as the workshop’s control standards, as well as comparisons between the monthly planned production volume and the actual production volume. Huo Zhaohui, the person in charge of the center, told reporters that since the implementation of refined management, the workshop has placed strong emphasis on on-site inspections and continuously optimized process parameters, enabling the various production units to operate stably over long periods of time and achieving tangible benefits as a result. It can be said that refined management, by focusing on every detail and covering all aspects, has enabled Xinghua Company to embark on a successful path to reducing costs and increasing efficiency. In addition to implementing meticulous management, Xinghua Company has also adopted a series of strategies such as increasing investment in energy-saving technological upgrades and reducing expenses to cut costs, thereby boosting the overall efficiency and quality of its operations and enabling it to overcome challenges in a tough business environment. During this year, Xinghua Company placed strong emphasis on innovation-driven development, upgrading and reforming the system components that affect process efficiency and production capacity, and completing projects aimed at improving quality and efficiency such as the renovation of Tower T741 in the methamine production facility ； By optimizing the allocation of process resources, more than 20 million yuan was saved in terms of methanol off-gas recovery, and the annual goal of increasing revenue while reducing expenses was exceeded by over 100 million yuan. Won 1 group company science and technology achievement award, and obtained certification for 4 practical patent technologies. Controlling costs and reducing expenses is also an effective way to improve the quality and efficiency of enterprises. Xinghua Company makes it a constant priority to reduce consumption, increase productivity, and save resources; it has established a system of assessment and incentives to strictly control the costs associated with the use of coal for ammonia and alcohol production, ensuring that these figures remain below those recorded in previous years and thus reach an advanced level. Tighten control over costs and inventory levels, maintain reasonable stock of supplies, and exercise control at the stage of demand planning. By means of mutual allocation and alternative use among various units, improve the efficiency of using spare materials and those that are in excess of demand, thereby reducing such excess inventory by over 10 million units. Centralized procurement of bulk materials, electronic bidding, and the signing of medium- to long-term contracts are implemented, resulting in a framework agreement rate for coal of over 95%, thereby minimizing the costs associated with purchasing raw materials.