Glyphosate price drops to industry cost line! Xingfa Group’s first quarter net profit is expected to fall 70%

The company estimated that the net profit attributable to shareholders of listed companies in the first quarter of 2023 would be 430 million to 450 million yuan, down 73.83%-75.00% year-on-year. Net profit attributable to shareholders of listed companies was 1.72 billion yuan a year earlier.

Xingfa Group said that it was mainly affected by market supply and demand changes.Since the second half of 2022, the market price of Glyphosate, silicone DMC and other cyclical products continued to decline, and the decline widened in thefirst quarter of this year. By the end of the first quarter, the price of Glyphosate had fallen to near the industry cost line, and the silicone DMC had fallen below the industry cost line.

Xingfa Group said that in the process of falling prices, the company's product production and sales have declined significantly. In this context, in the firstquarter of the company's glyphosate, silicone series of products profitabilitysignificantly weakened compared to the same period of last year, silicone evena loss.

It is worthmentioning that, in the first quarter, Xingfa Group wet electronic chemicals,specialty chemicals, food additives and other growth products market demand isgenerally good, profitability remains stable, has become the main source of thecompany's performance contribution.

Xingfa Group is a leading enterprise inthe phosphorus chemical industry in China. Its main products include phosphateore, food additives, fertilizer, glyphosate series products, organosiliconseries products,
Dimethyl sulfoxide and electronic chemicals, etc. The products are used inagriculture, construction, food, automobile, chemistry, integrated circuit andother fields.

On the secondary market, Xingfa Group'sshare price has recently been the whole shock down, as of April 10 close, thestock at 29.5 yuan/share, the company's total market value 32.8 billion yuan