From January to September 2009, the company's operating income was 3572.44 million yuan, a year-on-year decrease of 19.16%; total profit - 130.3 million yuan, a year-on-year decrease of 289.88%; net profit attributable to owners of the parent company - 130.44 million yuan, a decrease of 329.70% over the previous year; basic earnings per share - 0.1128 yuan. Among them, in July-September 2009, operating income was 1,274.09 million yuan, up 11.77% from the second quarter; net profit attributable to owners of the parent company was 133.21 million yuan, a decrease of 132.57 million yuan compared with -641,600 yuan in the second quarter; and basic earnings per share - 0.1,152 yuan.
The overall downturn in the chlor-alkali industry was affected by the financial crisis. As a representative company of the chlor-alkali industry, the prices of the company's leading products, caustic soda and PVC, fell sharply. At the same time, during the reporting period, some of the company's equipment reduced emissions and stopped production, personnel placement, and the simultaneous emergence of joint ventures in the chemical industry affected equity earnings, further worsening the company's performance. The company's expenses rate during the reporting period was 12.67%, an increase of 1.89 percentage points over the previous year. The main reason was that management expenses increased 20.52% year-on-year due to the discontinuation of production of some devices and the placement of personnel.
The second largest ethylene-coated PVC manufacturer in China. The company's main products are the production and sale of chemical raw materials and products such as PVC, caustic soda, and other chlorine products. It is a representative company that produces PVC using the ethylene method among listed domestic companies. It currently has production capacity of 420,000 tons/year of ethylene-method PVC, 760,000 tons/year of caustic soda, and 40,000 tons/year of paste resin, making it one of the largest chlor-alkali companies in China.
The cost advantage of the ethylene method is relatively reduced. Compared with the beginning of the year, with the rise in oil prices, the prices of ethylene and VCM rose by more than 50% and 30% respectively. The price increase of PVC was far lower than the increase in raw materials. Compared with calcium carbide PVC, the cost of the ethylene method increased relatively, which increased the company's operating pressure to a certain extent.
Participating in PVC futures is beneficial to the future development of enterprises. By hedging value in the PVC futures market, the total amount of hedging is 70% of the annual spot output of the corresponding standard contract. The impact of PVC price fluctuations on the company can be mitigated to a certain extent. At the same time, PVC futures can change the pattern of price scuffles in the PVC market, enhance the voice of domestic commodities in the international market, and benefit the entire industry.
Performance depends on the recovery process of the industry. The overall prosperity of the chlor-alkali industry is critical to the company's future performance. As basic chemical raw materials, chlor-alkali products are highly cyclical. They are currently in the industry. Recently, PVC prices have risen slightly, and the industry as a whole has shown signs of macroeconomic recovery. At the same time, good trends in downstream industries such as real estate have increased demand for PVC and other products, and it is unlikely that chlor-alkali products will fall further sharply.