On April 22, the Star Daily reported (Reporter Wu Xuguang) that Orinko Advanced Plastics announced the 2024 Earnings Reports on the evening of April 22.

In the reporting period, Orinko Advanced Plastics achieved revenue of 6.088 billion yuan, a year-on-year increase of 13.81%; net income was 0.194 billion yuan, a year-on-year increase of 32.04%; net income after deduction was 0.169 billion yuan, a year-on-year increase of 45.99%.

In the fourth quarter of 2024, Orinko Advanced Plastics had revenue of 1.797 billion yuan, with net income attributable to shareholders of the parent company being 0.041 billion yuan and net income after deduction being 0.039 billion yuan.

In 2024, the net cash flow from operating activities for Orinko Advanced Plastics was 0.551 billion yuan, an increase of 275.67% compared to the same period last year. Orinko Advanced Plastics stated that this was mainly due to the significant improvement in the company's profitability and lean management, which enhanced inventory turnover speed, reduced funds occupied, and promoted cash flow growth.

Regarding the changes in operational performance, Orinko Advanced Plastics stated that during the reporting period, the company seized the opportunity of macro-market structural adjustment to increase investments in new markets such as smart homes, new energy vehicles, and consumer electronics, with steady revenue growth in related fields; it adhered to innovation, and new products such as long carbon chain nylon and thermoplastic elastomers accelerated industrialization, achieving significant results in replacing traditional processes, solving material performance issues, and breaking foreign monopolies.

In terms of profitability, Orinko Advanced Plastics had a gross margin of 13.06% in 2024, a decrease of 0.68 percentage points year-on-year.

Specifically, from the product structure perspective, the revenue from modified plastics series was 5.936 billion yuan, a year-on-year increase of 15.39%; the gross margin was 13.61%, a year-on-year decrease of 0.67 percentage points. Among them, the revenue from the polyolefin series was 3.621 billion yuan, a year-on-year increase of 16.67%; the gross margin was 11.85%, a year-on-year decrease of 0.76 percentage points; the revenue from the polystyrene series was 0.916 billion yuan, a year-on-year increase of 15.15%, with a gross margin of 11.46%, a year-on-year decrease of 4.12 percentage points. The revenue from engineering plastics and other series was 1.399 billion yuan, a year-on-year increase of 12.33%, with a gross margin of 19.56%, a year-on-year increase of 1.96 percentage points.

Analysts from institutions believe that China's modified plastics industry has numerous manufacturers and intense competition, with serious issues of product technology homogenization, while foreign giants like BASF, Dow, and DuPont still hold a significant market share.

Orinko Advanced Plastics mainly engages in the research and development, production, and sales of modified materials and specialty materials, committed to providing customers with high-performance, functional material solutions. Its revenue primarily comes from the sales of polymer modified materials such as polyolefins, polystyrene, engineering plastics, and other series, applicable in home appliances, autos, telecommunications, medical, electronics, rail transit, precision instruments, and other fields.

The modified materials industry, as a key sector encouraged by the state for development, sees continued growth in market demand. However, in recent years, industry competition has increasingly intensified, and companies need to continuously enhance technology levels and product quality to maintain a competitive advantage.

Recently, Orinko Advanced Plastics has expanded into the new energy and Consumer Electronics market sectors, incubating and laying out product directions with high added value that represent future industry development trends.

It is worth mentioning that Orinko Advanced Plastics has independently developed long carbon chain nylon materials, breaking foreign technology barriers and achieving localized replacements in relevant application fields. During the reporting period, revenue from its long carbon chain nylon materials grew by 105.39% year-on-year, entering a stage of healthy growth.