① Shuangxiang Co., Ltd. had a pre-profit of 51 million yuan to 67 million yuan in 2023, reversing losses over the previous year; ② The new optical-grade PMMA and MS materials projects of Chongqing Shuangxiang Optical Company, a wholly-owned subsidiary of the company, are still under construction, and trial production is expected to begin in early February this year.
Financial Services Association, January 22 (Reporter Zhao Zixiang) After losing its performance for the first time since listing in 2022 due to the parent company's relocation and cessation of production, Shuangxiang Co., Ltd. (002395.SZ) fought a turnaround battle in 2023. While successfully achieving profit, the net profit scale is also expected to return to normal levels.
Today, Shuangxiang Co., Ltd. announced its 2023 annual results forecast. Net profit attributable to shareholders of listed companies during the reporting period was 51 million yuan to 67 million yuan, turning a loss into a profit over the previous year.
Regarding the reversal of performance losses, Shuangxiang Co., Ltd. stated in the announcement that net profit in 2023 increased significantly compared to the same period last year. The main reason was that its wholly-owned subsidiary Chongqing Shuangxiang Microfiber Materials Co., Ltd. achieved normal production during the reporting period, released production capacity, and contributed to profits.
In addition, Shuangxiang Co., Ltd. also said that during the reporting period, its wholly-owned subsidiary Suzhou Shuangxiang Optical Materials Co., Ltd. strengthened management, increased gross margin, increased net profit, etc. Together, it has contributed to a significant increase in the company's overall profitability compared to the same period last year.
According to public information, Shuangxiang Co., Ltd. belongs to Jiangsu Shuangxiang Group. After years of development, its main business is currently developing, producing and selling innovative optical-grade PMMA and microfiber ultra-leather material products. The company was listed on the Shenzhen Stock Exchange in April 2010 and currently has 4 wholly-owned subsidiaries, including Chongqing Shuangxiang Microfiber Materials Co., Ltd., Suzhou Shuangxiang Optical Materials Co., Ltd., Chongqing Shuangxiang Optical Materials Co., Ltd., and Wuxi Shuangxiang Optoelectronic Materials Co., Ltd.
A Financial Services Association reporter noticed that in the more than ten years since the listing, although the profit scale of Shuangxiang Co., Ltd. fluctuated and remained at the level of 10 million as a whole, it remained above the profit and loss line, and only experienced its first loss in 2022. At the time, the company announced that the company's gross margin declined due to a slowdown in macroeconomic growth, increased downward pressure on the market, rising costs of raw materials, etc., and the parent company sold some of its inventory at a discount during the relocation and discontinuation of production.
According to information, in 2020, since the former Wuxi base of Shuangxiang Co., Ltd. was included in the scope of demolition and expropriation in Wuxi City, the company announced in June 2020 that it is expected to receive compensation of about 604 million yuan for the demolition of the Wuxi base. In April 2023, Chongqing Shuangxiang, a wholly-owned subsidiary of Shuangxiang Co., Ltd., trial production was carried out. Early production focused on the company's heavy product, microfiber, and normal mass production of the first phase of the microfiber project was achieved in April of that year.
In August of last year, Changshou Wei published an article showing that the 300,000 ton PMMA and MS optical materials project built at the Chongqing base of Shuangxiang Co., Ltd. is under construction. Construction of the project began on May 20 this year, and trial production is expected to begin in early February 2024. After the project is put into operation, it will become the first enterprise in China to independently produce high-end MS products ranked No. 1.
Regarding the latest developments in the project, on January 2 of this year, Shuangxiang Co., Ltd. revealed on the investor Q&A platform that the new optical-grade PMMA and MS materials projects of Chongqing Shuangxiang Optical Company, a wholly-owned subsidiary of the company, are still under construction.