The company's total revenue for the first three quarters of 2023 was 2,538 billion yuan, down 29.99% year on year, and net profit to mother was 153 million yuan, down 64.42% year on year. The main reason for the decline in the company's performance is that 2023 was affected by the economic recession, falling commodity prices, especially oil and fat prices, and large fluctuations in stages. Biodiesel export prices fell sharply compared to 2022. At the same time, due to the European Union's traceability survey on China's biodiesel exports, European buyers' purchasing intentions declined, and the company's business was also affected to a certain extent.
The biodiesel manufacturer with the largest domestic production and sales volume has formed an “biomass energy integration” industrial layout. The company's product structure is mainly divided into two major segments: bioenergy and bio-based materials. In the bioenergy sector, biodiesel produced by the company from waste oil resources is recognized as a clean green fuel, mainly used in transportation power fuels, chemical materials, etc. Currently, the company has an annual biodiesel production capacity of 500,000 tons. In the bio-based materials sector, the company produces environmentally friendly alkyd resins, industrial glycerol, bioester plasticizers, etc., which can effectively replace the application of traditional petroleum-based materials, and is a highlight of future green and low-carbon economic growth. The current consolidated annual production capacity is 90,000 tons.
Biodiesel technology continues to change and develop, and the company has obvious advantages in scientific research technology. The company continues to increase investment in scientific research around the “biomass energy integration” industrial layout, and has formed a series of industry-leading core technologies. Through technological innovation in production stability, product quality, efficient conversion of resources, safe and clean production, automated control, etc., the company's waste oil methyl esterification conversion rate is 99%, and the yield of high-quality biodiesel products is higher than 90%. The industrial chain based on waste oil and biodiesel development and application continues to be enriched, and the overall technology is at the leading level in the industry.
Biofuel applications have broad prospects, and work on new projects is progressing as scheduled. Europe officially incorporated the shipping industry into the EU ETS system on May 16, 2023, and will expand into the field of shipping emissions from 2024. Europe will continue to require ships entering European ports to use clean fuels such as biodiesel. As the world's largest marine fuel filling port, Singapore has also introduced a biofuel fueling plan. Biodiesel is expected to show an accelerated development trend in the marine fuel market.
In terms of project construction, the new project is progressing as scheduled. The 200,000 tons/year hydrocarbon-based biodiesel (and bio-aviation coal) production line project and the 50,000 ton/year natural fatty alcohol production line project have completed land exploration work, and long-term equipment has been ordered one after another, making every effort to advance preparations for the commencement of the project.
Risk warning: the risk of additional production capacity in the market; the risk that demand in the downstream market falls short of expectations; the risk that the commissioning progress of projects under construction falls short of expectations; and the risk of a sharp increase in raw material costs.