中国心连心化肥(01866) - 2022 Q3 - 季度财报

Overall Performance Overview Financial Highlights The Group achieved robust revenue and profit growth in the first nine months of 2022, with total revenue up 49% and consolidated net profit up 14%, driven by favorable market conditions 2022 First Nine Months Key Financial Data | Metric | First Nine Months of 2022 | First Nine Months of 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Unaudited Consolidated Revenue | Approx. RMB 17.516 billion | Approx. RMB 11.762 billion | +49% | | Unaudited Consolidated Net Profit | Approx. RMB 1.584 billion | Approx. RMB 1.394 billion | +14% | | Total Comprehensive Income Attributable to Owners of the Parent | Approx. RMB 1.141 billion | Approx. RMB 1.020 billion | +12% | - The primary macroeconomic drivers for performance growth include the ongoing impacts of geopolitical factors, environmental policies, and the pandemic, which collectively pushed up global food prices, subsequently driving up prices for fertilizers and coal chemical products[1] Operational Highlights The Group successfully released high-quality production capacity and accelerated industrial chain transformation through the renovation and upgrade of the Xinxiang base and the expansion of the Xinjiang coal mine, enhancing market competitiveness - The renovation and upgrade projects for the second and third plants at the Xinxiang base, along with the expansion project for Xinjiang Tianxin Coal Mine, have successively commenced operations, effectively releasing high-quality production capacity and promoting diversified development of coal chemical products[1] Segment Performance Urea Urea business revenue increased by 50%, driven by both sales volume (+25%) and average selling price (+21%), though gross margin declined to 31.3% due to a 28% rise in coal costs Urea Business Performance (First Nine Months of 2022 vs First Nine Months of 2021) | Metric | Year-on-Year Change | | :--- | :--- | | Sales Revenue | +50% (to RMB 5.121 billion) | | Average Selling Price | +21% | | Sales Volume | +25% (to 2,021,000 tons) | | Average Production Cost | +28% | | Gross Margin | -4.0 percentage points (from 35.3% to 31.3%) | Automotive Urea Solution Automotive urea solution revenue grew 16% from moderate price and volume increases, but gross margin fell to 22.3% due to rising costs Automotive Urea Solution Business Performance (First Nine Months of 2022 vs First Nine Months of 2021) | Metric | Year-on-Year Change | | :--- | :--- | | Sales Revenue | +16% (to RMB 417 million) | | Average Selling Price | +8% | | Sales Volume | +7% | | Gross Margin | -5.7 percentage points (from 28% to 22.3%) | Compound Fertilizer Compound fertilizer revenue surged 70% due to significant increases in both average selling price (+38%) and sales volume (+23%), with gross margin slightly improving to 14.8% Compound Fertilizer Business Performance (First Nine Months of 2022 vs First Nine Months of 2021) | Metric | Year-on-Year Change | | :--- | :--- | | Sales Revenue | +70% (to RMB 4.790 billion) | | Average Selling Price | +38% | | Sales Volume | +23% (to 1,519,000 tons) | | Gross Margin | +0.5 percentage points (from 14.3% to 14.8%) | Methanol Methanol revenue increased 42%, but a 34% rise in production costs, far exceeding the 12% price increase, resulted in a gross loss with margin dropping to -1% Methanol Business Performance (First Nine Months of 2022 vs First Nine Months of 2021) | Metric | Year-on-Year Change | | :--- | :--- | | Sales Revenue | +42% (to RMB 1.736 billion) | | Average Selling Price | +12% | | Sales Volume | +26% | | Average Production Cost | +34% | | Gross Margin | -16 percentage points (from 15% to -1%) | Dimethyl Ether (DME) Dimethyl ether revenue increased 7% driven by a 14% price hike, but a 35% surge in production costs led to a significant gross margin decline to 3% Dimethyl Ether (DME) Business Performance (First Nine Months of 2022 vs First Nine Months of 2021) | Metric | Year-on-Year Change | | :--- | :--- | | Sales Revenue | +7% (to RMB 1.056 billion) | | Average Selling Price | +14% | | Average Production Cost | +35% | | Gross Margin | -14 percentage points (from 17% to 3%) | Melamine Melamine revenue remained flat, with sales volume down 3% due to export restrictions, and gross margin decreased to 53% despite a 23% rise in production costs Melamine Business Performance (First Nine Months of 2022 vs First Nine Months of 2021) | Metric | Year-on-Year Change | | :--- | :--- | | Sales Revenue | -0.2% (to RMB 805 million) | | Sales Volume | -3% | | Average Production Cost | +23% | | Gross Margin | -7 percentage points (from 60% to 53%) | - The primary reason for the decline in sales volume was the ongoing impact of the Russia-Ukraine conflict and escalating EU sanctions against Russia, leading to restricted exports to Russia[7] Furfuryl Alcohol Furfuryl alcohol revenue and sales volume declined by 5.6% and 7% respectively due to weak demand, with gross margin sharply falling to 4% from increased raw material costs Furfuryl Alcohol Business Performance (First Nine Months of 2022 vs First Nine Months of 2021) | Metric | Year-on-Year Change | | :--- | :--- | | Sales Revenue | -5.6% (to RMB 520 million) | | Sales Volume | -7% | | Average Sales Cost | +15% | | Gross Margin | -11 percentage points (from 15% to 4%) | Pharmaceutical Intermediates Pharmaceutical intermediates revenue decreased 14% due to weaker domestic and international demand, with both selling price and sales volume declining, leading to a gross margin drop to 14.6% Pharmaceutical Intermediates Business Performance (First Nine Months of 2022 vs First Nine Months of 2021) | Metric | Year-on-Year Change | | :--- | :--- | | Sales Revenue | -14% (to RMB 321 million) | | Average Selling Price | -10% | | Sales Volume | -4% | | Gross Margin | -6.1 percentage points (from 20.7% to 14.6%) | Outlook Market Outlook The company anticipates continued tight energy supply and high coal prices, supporting stable to upward fertilizer prices, while national focus on food security will boost demand for efficient and eco-friendly fertilizers - The tight supply-demand situation for energy, both domestically and internationally, is expected to continue, with coal prices remaining high, providing cost support for fertilizer prices and showing a stable to upward trend[10] - The nation's renewed emphasis on food security during the 20th Party Congress is expected to boost demand for efficient and environmentally friendly fertilizers, driving rapid transformation and upgrading of the fertilizer industry[10] Corporate Strategy and Project Progress The company will prioritize technological innovation and efficient fertilizer development, adjust methanol production, and despite Q3 profit decline and Q4 transport challenges, new projects are progressing as planned - The company's strategy includes: adhering to technological innovation and product upgrading, strengthening research and development of efficient fertilizers; and addressing the methanol market downturn through flexible adjustments and extending the industrial chain[11] - In the third quarter of 2022, the Group's total profit decreased quarter-on-quarter due to domestic COVID-19 outbreaks and maintenance at the Xinjiang base. In the fourth quarter, ongoing pandemic impacts and transport restrictions may lead to increased inventory, affecting performance[11] - Project progress: The Xinjiang base's Gansu Jinchang compound fertilizer project has been completed and commenced operations; the Xinxiang base's 700,000 tons/year green manufacturing urea project is expected to be completed and operational in the first half of the following year[11]