XINGFA CHEMICALS GROUP Releases 3Q 2020 Results

From January to September 2020, the company achieved operating income of 15.2 billion yuan, up 5.35% year-on-year, and net profit attributable to shareholders of the listed company of 362 million yuan, up 20.32% year-on-year.

Since April, the company's production and operation gradually returned to normal, the main production units to achieve stable and high output, while the downstream market demand is rapidly picking up.

In the first three quarters, the company's wholly-owned subsidiary Yidu Xingfa successfully achieved a breakthrough in wet process phosphoric acid refining process, 100,000 tons / year (hundred percent) wet process phosphoric acid refining device to enhance the stability of driving, refined phosphoric acid production increased, unit production costs decreased, product profitability enhanced; affected by market supply and demand, the company's dimethyl sulfoxide products (mainly used in pharmaceutical solvents and reaction preparations) market prices rose compared to the same period last year, product gross profit margin; affected by this year's abundant rainfall, the company's hydropower station self-generation capacity increased significantly, reducing the company's Hing Shan regional production unit cost of electricity.

XINGFA CHEMICALS is conducting refinancing, intends to non-public offering of not more than 88 million shares, to raise funds of not more than 880 million yuan, to invest in 60,000 tons / year chip with ultra-high-purity electronic grade chemical projects, 30,000 tons / year electronic grade phosphoric acid technology transformation projects and return bank loans and other projects. The company's controlling shareholder Yichang Xingfa intends to participate in this fixed increase, the subscription amount is not less than 50 million yuan. 7 September, the company has received the approval of the Securities and Exchange Commission to issue shares.