Xinghua Shares (002109.SZ) released its 2021 financial results: net profit amounted to 539 million yuan, a year-on-year increase of 151.82%; the company plans to distribute a dividend of 1.5 yuan per share

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Xinghua Shares (002109.SZ) released its financial results for 2021: the net profit amounted to 539 million yuan, a year-on-year increase of 151.82%. The company plans to distribute a dividend of 1.5 yuan per share. Author/Source: Date: 2022-04-23; Clicks: 10. Xinghua Shares (002109.SZ) disclosed its annual report for 2021, showing that the company’s revenue during that period was 2.837 billion yuan, a year-on-year increase of 46.25%. The net profit attributable to the parent company was 539 million yuan, up 151.82% on a year-on-year basis; the net profit after deducting non-recurring items was 540 million yuan, with a year-on-year increase of 155.66%. The basic earnings per share were 0.5116 yuan. It is proposed to distribute a cash dividend of 1.5 yuan (including taxes) per 10 shares to all shareholders. During the reporting period, the parent company served as a holding platform and did not engage in any specific business operations; the main operating entity was Xinghua Chemical, which is a wholly-owned subsidiary of the company. Xinghua Chemical is a coal-based chemical manufacturing enterprise; its main products are synthetic ammonia, methanol, methylamine, and DMF, all of which are produced from coal as raw material. It has an annual production capacity of 300,000 tons of synthetic ammonia, 300,000 tons of methanol, 100,000 tons of methylamine, and DMF. From the perspective of current industrial policies, traditional coal chemical industries are strictly regulated, while coal-to-oil projects, coal-to-natural gas projects, and demonstration projects for the differentiated utilization of coal are developed in an orderly manner. The coal chemical industry is influenced both by the upstream coal industry and the downstream petrochemical products industry. Fluctuations in coal prices in the upstream industry, the market supply of coal chemical products, as well as demand from the downstream industry can all cause fluctuations in the operating performance of companies in this sector. Benefiting from the implementation of the domestic big cycle strategy, as well as various factors such as the supply and demand dynamics in the chemical products market, the prices of Xinghua Chemical’s key chemical products saw a significant increase on a year-on-year basis. As a result, the company’s performance improved markedly, reaching new historical highs, thus securing a strong start to the 14th Five-Year Plan period. The performance drivers of Xinghua Chemical are mainly reflected in five aspects: management team, operational control, production costs, capital structure, and core competitiveness.