Guangxin's first-half net profit was 1.023 billion yuan

 On August 24, the company released the semi-annual performance report, in the first half of 2023, the company achieved operating income of 3.772 billion yuan, down 16% year-on-year; Net profit attributable to the parent company was 1.023 billion yuan, down 18% year-on-year, and the net profit attributable to the parent company after deducting non-profits was 963 million yuan, down 18% year-on-year; Basic earnings per share of 1.57 yuan/share, down 18% year-on-year.

In the first half of the year, the company's performance declined mainly due to the volume and price decline caused by weak demand in domestic and overseas markets, and the sales volume of the main pesticide in the first half of the year fell 5.6% to 34,900 tons. In terms of price, 23H1 company's bactericidal products Carbendazim and Thiophanate-Methyl (97% content) fell by 14%/11% year-on-year, respectively; The average market price of herbicide Glyphosate (East China)/ Diuron decreased by 49%/8%, respectively. 

In a single quarter, the company achieved operating income of 1.85 billion yuan in Q2, down 24.5% year-on-year and down 4.2% quarter-on-quarter; Net profit attributable to the parent company was 502 million yuan, down 25.6% year-on-year and down 3.6% quarter-on-quarter. In Q2, the sales volume of the company's main pesticides increased by 17.5% quarter-on-quarter to 19,000 tons, but the wide price weakening caused pressure on profits.

Since Q3, demand at home and abroad has rebounded, and pesticide stocks have been significantly reduced. According to Baiinfo, as of August 18, Glyphosate factory inventories in China have been reduced by 36% compared with the beginning of June. According to FRED’s  statistics, in June the United States pesticide and fertilizer and other pesticides and chemicals inventory is lower than the same period last year, the second half of the market is expected to improve.

In the first half of 23 years, the company has opened up the upstream ionic membrane caustic soda technology from the source of the industrial chain, and 300,000 tons of ionic membrane caustic soda has been officially put into production. After the completion of the project, the company's main raw materials liquid alkali, liquid chlorine and hydrogen have all realized self-supply, which enriches the product structure, meets the needs of continuous production of the factory and

On August 10, the subsidiary Guangxin’s project of 40,000 t/a  P-aminophenol" was put into operation, further extending the application of Chlor-alkali - p-1-Chloro-2-nitrobenzene  and other upstream and downstream raw materials, enhancing the competitiveness of the main industry, officially opening up the chain from phosgen-fine chemicals - pharmaceutical intermediates, to achieve value upgrading.