Chemical industry focus subdivision chemical sub-industry analysis

4 Nitrogen fertilizer

Overall performance and profitability declined in 2021: revenue decreased by 59.4%, net profit attributable to the parent decreased by 57.6%, gross margin increased by 0.7% to 16.2%, and net margin decreased by 6.4% to 3.1%. Expense management remains to be improved: the selling expense ratio remained flat, the administrative expense ratio increased by 2.2%, and the finance expense ratio decreased by 0.7%. Operating capacity to be optimized: Inventory turnover days decreased by 2 days, accounts receivable turnover days increased by 10 days. Both fixed assets and industrial investment fell: the share of fixed assets fell 10.9% year on year to 41%, and the share of construction in progress fell 4.7% year on year to 3.2%. The asset structure needs to be improved: the debt-to-asset ratio increased by 6.5% year-on-year to 57%.

2022Q1 overall performance and profitability have declined: revenue decreased by 63.5% year-on-year, net profit attributable to the mother decreased by 86.3% year-on-year, gross margin decreased by 8.5% year-on-year to 15%, net margin decreased by 8.5% year-on-year to 5.7%. Expense management remains to be improved: the selling expense ratio was flat, the administrative expense ratio increased by 2.1%, and the finance expense ratio increased by 0.1%. Operating capacity to be optimized: Inventory turnover days increased by 3 days and accounts receivable turnover days increased by 10 days. The decline in fixed assets was obvious, and industrial investment increased slightly: the proportion of fixed assets decreased by 11.5% year-on-year to 39.1%, and the proportion of projects under construction increased by 0.3% year-on-year to 0.8%. The asset structure needs to be improved: the asset-liability ratio increased by 6.5% year-on-year to 56.1%.

5 Inorganic salt

Overall performance and profitability in 2021 are synchronized: revenue increased by 132.3% year-on-year, net profit attributable to mothers increased by 158.9% year-on-year, gross margin increased by 4.3% year-on-year to 23.5%, and net margin decreased by 0.3% year-on-year to 10.4%. Expense management improved significantly: the selling expense ratio was flat, the administrative expense ratio decreased by 1.4%, and the finance expense ratio decreased by 0.8%. Significant improvement in operating capacity: inventory turnover days decreased by 10 days year-on-year, and accounts receivable turnover days decreased by 20 days year-on-year. Fixed assets declined slightly, and industrial investment increased: the proportion of fixed assets decreased by 1.8% year-on-year to 44.7%, and the proportion of construction in progress increased by 1.3% year-on-year to 7.6%. The asset structure needs to be improved: the asset-liability ratio increased by 6.8% year-on-year to 44.7%.

2022Q1 performance and profitability continued to rise: revenue increased by 165.9%, net profit attributable to the parent increased by 184.9%, gross margin decreased by 0.5% to 25.7%, net margin increased by 1.3% to 14.2%. Expense management continued to be optimized: selling expense ratio decreased by 0.2%, administrative expense ratio decreased by 2.3%, and finance expense ratio decreased by 0.6%. Operating capacity continued to improve: inventory turnover days decreased by 4 days year-on-year, and accounts receivable turnover days decreased by 32 days year-on-year. The proportion of fixed assets decreased slightly, and industrial investment increased: the proportion of fixed assets decreased by 3.7% year-on-year to 41.6%, and the proportion of projects under construction increased by 1.8% year-on-year to 2.8%. The asset structure remains to be improved: the debt-to-asset ratio increased by 3.9% year-on-year to 42.8%.

6 Other chemical raw materials

Overall performance and profitability declined in 2021: revenue decreased by 28.5% year-on-year, net profit attributable to the parent decreased by 36.2% year-on-year, gross margin decreased by 17% year-on-year to 19.6%, and net margin decreased by 6.9% year-on-year to 12.3%. Expense management remains to be improved: selling expense ratio decreased by 2.4%, administrative expense ratio decreased by 1.1% and finance expense ratio decreased by 1.4%. Operating capacity to be optimized: Inventory turnover days increased by 22 days and accounts receivable turnover days increased by 76 days. Both fixed assets and industrial investment declined: the share of fixed assets fell 5.7% year on year to 33.6%, and the share of construction in progress fell 15.3% year on year to 2.6%. The asset structure improved significantly: the debt-to-asset ratio decreased by 18% year-on-year to 24.2%.

2022Q1 overall performance declined, profitability declined year-on-year but rebounded quarter-on-quarter: revenue decreased 48.3% year-on-year, net profit decreased 66.5% year-on-year, gross margin decreased 15.9% year-on-year to 21.7%, net margin decreased 8.1% year-on-year to 15.1%. Expense management continued to improve: Selling expense ratio decreased by 1.5%, administrative expense ratio decreased by 1.2%, and finance expense ratio decreased by 1.2%. Operating capacity was optimized: inventory turnover days decreased by 17 days and accounts receivable turnover days increased by 8 days. There was a decline in fixed assets and a slight increase in industrial investment: the proportion of fixed assets decreased by 1.9% year-on-year to 31.9%, and the proportion of construction in progress increased by 0.3% year-on-year to 0.7%. The asset structure improved: the debt-to-asset ratio fell 18.2% year-on-year to 25.6%.