LUXI Chemical Releases 3Q 2020 Results

Luxi Chemical expects to report a net profit of 450 million yuan to 480 million yuan in the first three quarters of 2020, down 45.48%-48.89% from a year earlier. However, the company's third-quarter results ushered in a turnaround, with an estimated profit of 230 million yuan to 260 million yuan, up 114.68%-142.68% over the same period last year.

This year, due to the covid-19 epidemic and market impact, Luxi Chemical's production, sales and sales prices of its main products in January-April fell sharply year-on-year. Since May, as the company's production equipment gradually resumed full-load operation, the prices of major products have risen, the company is also vigorously compressing various expenses, and operating results have gradually improved.

In terms of operations, the company closely tracked the market conditions of raw materials in bulk, the implementation of raw material procurement of domestic substitution, reduce costs, and continue to meet the company's production of raw material supply. Sales side of the continuing concern about the price fluctuations of raw materials and changes in crude oil, timely adjustment of product sales prices, to maximize the balance between production and sales, in terms of project construction, the company's second phase of nylon 6, power transmission engineering, high-end fluorine materials integration projects are advancing in an orderly manner.