China丨Total investment over RMB 6 billion, Wynca's major projects being implemented soon

Recently, Wynca held the 2022 half-year performance briefing, the company's senior executives introduced the company's 2022 half-year performance, and answered the questions of widespread concern.

Q: What is the current situation of glyphosate orders? And what is the company's assessment ofglyphosate’s prosperity in the next two years?

Answer: Now, the company’s glyphosate production are no goods remaining every month, and the production has been arranged to October. From the perspective of the supply side of glyphosate industry in the future, under the supply-side reform and the trend of normalizing environmental protection, the new production capacity of glyphosate industry will still be limited. With the gradual release of GMO in China, the relationship between supply and demand of glyphosate will be in a tight balance in the visible period. Because the demand side was affected by the outbreak of the epidemic, geopolitics and other factors, many countries around the world have placed food security in a very important strategic position. With the rapid rise of global agricultural prices, the global arable land area continues to increase, and the farmers’ enthusiasm for planting has increased, which has provided support for the high price of agricultural materials such as fertilizers and pesticides.

Question: At present, the company's glyphosate raw materials yellow phosphorus and glycine have fallen sharply, so, how profitable is the company now with glyphosate? What is the approximate cost per ton? How much profit will the depreciation of the yuan against the dollar bring to the company? thank you!

Answer：It is true that the purchase price of glycine has fallen considerably recently, however, the purchase price of yellow phosphorus has been obviously repeated recently after the early decline. Actually, the company's present cost of glyphosate has remained relatively flat,  and its profit situation is generally good.  As the company is mainly export-oriented and settled in US dollars, the depreciation of RMB against US dollar has brought a certain positive impact on the company's business performance. By the end of the half year, the accumulated exchange gains and losses were about 40 million RMB.

Question:  As the second largest company in the glyphosate and silicone industry, does Wynca have specific considerations for expanding capacity and expanding the market?

Answer: according to experience of Wynca , the long-term sustainable development of the company cannot rely solely on capacity expansion. In fact, we will give more consideration to the layout and development of the whole industrial chain. In the future, the company will adhere to the business philosophy of "industrial chain backward, value chain upgrading and supply chain coordination", focus on the main business channel of "2+X", and based on the original industrial basis of "chlorine, silicon and phosphorus" element recycling, the company will constantly strengthen and complement the chain, and continue to enhance the overall competitive strength of the whole industrial chain. At the same time, for the fast growth of the new energy circuit, based on the existing two industrial bases of phosphorus and  silicon substrate and the and unique industrial advantages continue to expand, centering on the new energy industry, we will accelerate the industrialization of photovoltaic raw materials, electrolyte raw materials, silicon carbon anode materials and other products,  creating a comprehensive solution with the characteristics of new security for the whole industry chain in photovoltaic, power battery, energy storage, new energy vehicles and many other fields, forming a development pattern from "two-wheel drive" to "three pillars".