Hubei Yihua’s net profit in 2021 increased by 1,255.01% on a year-on-year basis

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Hubei Yihua’s net profit in 2021 increased by 1,255.01% on a year-on-year basis. Author/Source: Yihua Group. Date: April 10, 2022. Clicks: 20. The annual report for 2021 released by Hubei Yihua Chemical Co., Ltd. on April 9 showed that the company achieved operating revenue of 18.544 billion yuan in that year, a 34.33% increase compared to the previous year； The net profit attributable to the shareholders of the listed company was 1.569 billion yuan, representing a year-on-year increase of 1255.01% ； Basic earnings per share is 1.75 yuan. By the end of 2021, the net assets attributable to the shareholders of the listed company amounted to 2.408 billion yuan, representing a year-on-year increase of 638.10%. Looking back at the year’s activities, the company achieved outstanding results in the following areas: strong production and sales performance, improved profitability, and an increase in intrinsic value. During the reporting period, the company made every effort to overcome various challenges such as rising raw material costs, restrictions on energy consumption, export limitations, recurring outbreaks of the pandemic, and losses resulting from site relocations. In terms of production, all employees worked hard to ensure the safe and stable operation of the facilities, with capacity utilization rates for urea, diammonium phosphate, and PVC reaching 95.49%, 113.26%, and 89.92% respectively ； In terms of the market, companies took advantage of the significant price increases for their key products; the gross margins for urea, diammonium phosphate, and PVC rose to 34.91%, 28.45%, and 18.85% respectively. The annual net profit increased by 12.55 times, demonstrating a significant improvement in profitability; the company’s intrinsic value has been fully recognized by the capital market. Outstanding cost control, improved operational efficiency, and enhanced capital structure. The net cash flow from operating activities during the reporting period was 3.659 billion yuan, representing a year-on-year increase of 190.20%. The turnover of inventory, accounts receivable, and total assets was high; the proportions of sales expenses, administrative expenses, and financial expenses relative to revenue decreased further, improving the overall quality of the assets. The debt-to-asset ratio dropped to 80.98%. Technological upgrades are yielding results, efforts are being made to save energy and reduce consumption, and focus is placed on research and development. The company makes full use of its existing equipment to carry out technological upgrades and optimize production processes ； Continuously advance energy management and strictly control material consumption ； Fully promote technological progress, with 34 patents granted throughout the year ； Investment in research and development was increased, with annual R&D expenditure reaching 711 million yuan, a year-on-year increase of 117.87%, thereby laying a technical foundation for the comprehensive utilization of resources and the sustainable development of the enterprise. The projects are gradually yielding results, cooperation is pursued for shared development, and a new chapter in industrial layout is being written. During the reporting period, the company’s key investment projects were put into operation or launched one after another. The trimethylolpropane (TMP) and photoinitiator (TPO) projects were put into operation as scheduled, while the construction of the biodegradable new material (PBAT) project is progressing rapidly. At the same time, the company makes full use of its advantages in the phosphating industry and in terms of resources, as well as its capabilities in producing basic chemical products. It actively forms partnerships with leading enterprises in the new energy industry chain; together with a subsidiary of CATL, it established Yichang Bampu Yihua New Materials Co., Ltd. to develop integrated projects for producing chemical raw materials needed for battery production. By doing so, the company seizes the opportunities presented by the new energy market, optimizes and upgrades the structure of its phosphorus chemistry industry chain, and enhances its market competitiveness and ability to generate sustainable profits.