Domestic phosphorus chemical industry leader, the main product production capacity is in the forefront of the industry. The company was founded in 1993, located in Yichang City, Hubei Province, and listed in 1996.

The company is mainly engaged in the production and sales of chemical fertilizers and chemical products, and has established a number of production bases in Inner Mongolia, Hubei, Qinghai, Xinjian and other places. The main products include urea, diammonium phosphate, polyvinyl chloride, pentaerythritol, insurance powder and so on. In terms of production capacity, the company currently has a production capacity of 1.56 million tons of urea, 1.26 million tons of diammonium phosphate and 840000 tons of polyvinyl chloride. From 2021 to 2023Q1, the company realized operating income of 185.44 yuan, 207.13 yuan and 4.718 billion yuan, up 34.33%, 11.69% and-14.59% respectively over the same period last year; and realized net profit of 15.69,21.64 and 220 million yuan, up 1255.01%, 37.94% and-65.52% respectively over the same period last year. The decline in the company's performance in 2023 was mainly due to the continuous decline in the market prices of diammonium phosphate, urea, polyvinyl chloride and some fine chemical products, while the company's subsidiaries arranged an orderly annual shutdown for maintenance, resulting in a decline in production and sales.

The prices of urea and diammonium phosphate have rebounded. Recently, the prices of urea and diammonium phosphate all rebounded. According to Baichuan Yingfu, as of August 8, 2023, the price of urea was 2393 yuan / ton, up 16.50% from 2054 yuan / ton on June 16, 2023, and the average monthly price was 2437.33 yuan / ton, up 9.17% from the same period last year. The average market price of 64% diammonium phosphate granules was 3323 yuan / ton, up 1.03% from the previous month, and the weekly average price was 3306 yuan / tonne. The weekly average price was 2.18%, and the monthly average price was 3282.33 yuan / ton, up 0.39% from the same period last year. The high-end price of diammonium phosphate Baltic FOB in bulk was US $534 / ton, up 3.39% from US $516.5 / ton on July 17.

Directional additional issuance to raise funds, upgrading and upgrading of 550000 tons of ammonia alcohol plant. The company raised 2.5 billion yuan through directional additional issuance to invest in the "Clean Coal pressurized Gasification Co-production Technical Reform and upgrading Project". The project relocated the company's original annual production capacity of 550000 tons of liquid ammonia and methanol in Yichang Yanting Chemical Park to the Tianjiahe area of Yaojiagang Chemical Industry Park in Yichang City. The annual production capacity of this investment project is 460000 tons of liquid ammonia, 90,000 tons of methanol, and 21300 tons of sulfuric acid as a by-product. The project construction period is 24 months, of which 330000 tons of liquid ammonia, 90,000 tons of methanol and 21300 tons of by-product sulfuric acid are clearly used for the company's own use. The remaining 130000 tons of liquid ammonia is mainly used to meet the company's own incremental needs in the future or to sell flexibly according to market conditions.

Actively layout the new energy track and develop cathode materials in Ningde era. On October 12, 2021, the company signed the Cooperation intention Agreement on Integrated Battery Materials matching Chemical Raw Materials Project with Ningbo Bangpu Times New Energy Co., Ltd. in Wuhan, Hubei Province. It is planned to cooperate with Ningbo Bangpu in the field of supporting chemical raw materials for new energy battery materials. Ningbo Bangpu is a holding subsidiary of Ningde era, which is mainly responsible for the layout of resource strategy (nickel, cobalt, lithium, phosphorus, etc.) and the technology development and industrialization of battery materials in Ningde era. The company and Ningde Times subsidiary jointly funded the establishment of Yichang Bang Puihua New Materials Co., Ltd. At present, the company holds 67.57% of the shares, while Hubei Yihua Fertilizer Co., Ltd. holds 35% of the company, while Ningbo Bangpu holds 65% of the shares. The joint venture Bang Pu Yihua plans to build 300,000 tons / year ferric phosphate and 200,000 tons / year nickel sulfate projects, which are expected to be put into production by the end of 2023.

Risk hints: the project construction schedule is not as expected, the prices of raw materials and products fluctuate sharply, and the macro-economy is declining.