Nutrichem's net profit in 2022 increased bymore than 120% compared with the same period last year

On March 31, Nutrichem disclosed its 2022 annual report. During the reporting period, the company achieved operating revenue of 8.161 billion yuan, with a year-on-year growth of 9.90%. Net profit returned to the mother was 1.057 billion yuan, up121.93% year on year. Non-net profit was 1.077 billion yuan, up by 117.46% yearon year.

In terms of performance changes, Nutrichem said that in 2022,due to the repeated epidemic, geopolitical conflicts and extreme climate, food security remained the focus of global strategic attention. Coupled with therigid demand for pesticide products and the strong export demand caused by insufficient overseas construction, the domestic agrochemical industry entereda boom period.

In this context, the company's product sales scale expanded,profitability significantly improved, performance significantly increased,coupled with the improved profitability of affiliated units, the investmentincome attributable to the company increased correspondingly

However, the rising raw material prices combined with seasonal energy constraints alsopose some risks to the company's operations. The Company stated thatthe price rise of raw materials would have a great impact on the cost of itsproducts. Although the Company can minimize the adverse impact of the pricerise of raw materials on the company's earnings by virtue of its advantages inscale and extensive raw material supply channels established by itself, theprice of oil, the basic raw material of the Company's agrochemical industry, is vulnerable to the influence of international political and economic environment. As a result, the price fluctuationof downstream chemical raw materials makes the company face the profituncertainty risk caused by the price fluctuation of main raw materials.

In this regard, the company will pay close attention to the changes in theinternational commodity market and the adjustment of national industrial and economic policies, as well as the resulting impact on the supply market andprice changes of the company's main raw materials. Through the collection andanalysis of domestic and foreign market information, the company will constantly adjust and optimize the supply channel, procurement strategy, price management, etc., and do a good job in strategic inventory to ensure the quality and timeliness ofraw material supply.