China丨Hunan Haili Net Profit Increased by 35%, Ningxia Base into Operation Next Year

Hunan Haili

The financial report shows that the company's revenue and net profit in Q1 increased by 20.27% and 8.4% year-on-year, respectively, while Q2's revenue and net profit increased by 14.88% and 57.37%, respectively. Regarding the faster growth of Q2 net profit, Liu Hongbo said that through process optimization and equipment improvement, the production capacity of Carbosulfan in Guixi New Area has increased from 3000T/A to 6000T/A, and its production capacity has been released rapidly during the reporting period.

In addition to the doubling of the above-mentioned production capacity, the prices of the company's main products have risen to varying degrees. Hunan Haili has built a carbamate pesticide technical production plant with an annual output over 10,000 tons, and an organophosphorus pesticide production plant with an annual output over 10,000 tons. etc. Its main products cover carbamates, heterocycles, organophosphorus, formulations, and lithium battery materials. Correspondingly, the average selling price from January to June this year increased yoy by 14.51%, 14.40%, 90.41%, 7.69% and 163.30% respectively.

From the perspective of cost, the basic raw materials required for the production of Hunan Haili products include various chemical products. In the first half of the year, the price changes of oximes, amines and esters were +7.97%, +9.82% and -3.51% respectively. During the reporting period, the company's revenue increased by approximately 17% year-on-year, and operating costs increased by approximately 13.5% year-on-year. Liu Hongbo said that in the first half of the year, raw materials rose to varying degrees, but product prices rose relatively more, and the price gap between them became wider.

It is worth noting that in February this year, Hunan Haili announced to invest in the construction of a series of products with an annual output of 4,000 tons of carbaryl and 5,000 tons of thiophanate-methyl, as well as supporting projects with an annual output of 30,000 tons of phosgene. Company insiders said that this is the strategic transfer of the company's advantageous products for construction, and at the same time, the downstream products of phosgene are developed to enrich the variety of fine chemicals. At present, the Ningxia base plant and supporting construction are steadily advancing, and strive to put some production units into operation in 2023.

It is also understood that the company's Haili Guixi 3000t/a methyl pyrimidine phosphorus production plant construction project has completed various compliance procedures, civil engineering and professional construction drawings have been designed and delivered, and the maternity house foundation and first-floor column frame have been completed. Construction, installation and installation projects have been put on the grid for bidding, and installation and commissioning are expected to be completed in 2023.