Description of the event
On August 18, Chenguang New Materials released its 2023 semi-annual report, achieving revenue of 565 million yuan, a year-on-year decrease of 48.38%; realized net profit of 71.2538 million yuan, a year-on-year decrease of 82.60%; realized net profit of 377.435 million yuan, a year-on-year decrease of 90.86%; and achieved basic earnings per share of 0.23 yuan/share. Among them, we achieved operating income of 282 million yuan in the second quarter, down 49.90% year on year and 0.36% month on month; realized net profit of 305.7781 million yuan, down 86.06% year on year, and 24.82% month on month; realized net profit after deducting 5.244 million yuan, down 97.67% year on year and 83.86% month on month.
The pressure on supply and demand in the silicone industry brought double pressure on revenue and profit. Production and sales increased sharply in the second quarter, and the overall profit of silane coupling agents came under pressure. 2023H1, the company's revenue and profit declined sharply, mainly due to poor recovery in overall demand in the silicone industry and a significant drop in product prices and gross margin due to investment in additional production capacity. According to the operating data disclosed by the company, the sales unit prices of amino/epoxy, sulfur-containing, vinyl/ orthosilicate in the second quarter were -19.24%/-15.79%/+160.53%/-1.38%/-9.55%, respectively. The comprehensive gross margin for the second quarter was 11.05%, year-on-year/month-on-month - 39.31pct/-8.45pct.
By exchanging volume for price, market share has further increased. In the second quarter, product price reductions and the volume of new projects led to a significant increase in the company's production and sales volume over month. The total product production/sales volume in a single quarter reached 9476.37/10432.9 tons, respectively, +8.28%/+17.42% over the previous quarter. Among them, aminosilane 2203.79/ 2089.24 tons, +34.12%/+9.98% month-on-month; epoxysilane 921.92/1473.87 tons, respectively -27.15%/+37.07%; sulfur-containing silane 1551.76/1624.00 tons, +9.59%/10.07% month-on-month; vinyl silane 2616.56/2618.3 tons, respectively +22.47%/+28.80%; orthosilicate silane 2182.34/ 2627.56 tons, -4.72%/+9.38%, respectively.
Actively promote project construction and integrated layout of the two bases
In 2023, the company actively promoted the construction and operation of several projects. Some products of the company's “Technical Improvement and Capacity Expansion Project for New Silicone Materials with an Annual Output of 65,000 Tons” and the “Special Silicone Material Project with an Annual Output of 23,000 Tons” have already entered the trial production stage.” The “functional silane project with an annual output of 300,000 tons is under full construction. Relying on the company's existing process technology and new product development advantages, the project aims to expand the production capacity of functional silane series products. Furthermore, the company is also investing in the construction of a “300,000-ton silicon-based and aerogel new material project with an annual output of 300,000 tons” in Zhongwei Industrial Park in Ningxia. It is currently under comprehensive construction. It is planned that the first phase of the project will meet trial production conditions by the end of 2023. Meanwhile, in the Hukou High-tech Industrial Park in Jiujiang City, Jiangxi Province, the company plans to invest in the construction of a new silicon-based material project with an annual output of 210,000 tons and a cobalt-based new material. The company will rely on this project to further expand the layout of the entire industry chain.