YMCC(SH:600691) Shang Hai Zheng Quan Bao·2025-04-18 22:39Core Viewpoint - The company, Yangmei Chemical, is facing challenges in the chemical industry due to unfavorable market conditions, including price fluctuations of raw materials and decreased demand for its products, leading to a significant decline in revenue and a negative net profit for the year [5][9]. Company Overview - Yangmei Chemical operates in the chemical industry, focusing on coal chemical, salt chemical, fine chemical, cogeneration, and chemical equipment [6]. - The main products include urea, polyvinyl chloride (PVC), propylene, ion membrane caustic soda, phosphorus trichloride, and hydrogen peroxide, primarily serving the agriculture and chemical sectors [6]. Business Model - The company utilizes coal and salt as primary raw materials, with electricity and steam as energy sources, employing various manufacturing processes to produce chemical products [7]. - A centralized procurement model is implemented to enhance market bargaining power and ensure the supply of raw materials [7]. - The sales strategy focuses on centralized sales and pricing to improve market competitiveness, including attempts to utilize online platforms for competitive pricing [8]. Financial Performance - In the reporting period, the company produced 1.5826 million tons of urea, 250,600 tons of PVC, 138,000 tons of propylene, 400,500 tons of ion membrane caustic soda, 85,300 tons of phosphorus trichloride, and 238,700 tons of hydrogen peroxide [9]. - The company reported a revenue of 10.895 billion yuan, a decrease of 2.726 billion yuan from the previous year's 13.621 billion yuan [9]. - The net profit attributable to shareholders was -681 million yuan, an improvement from -1.366 billion yuan in the previous year, indicating a reduction in losses [9]. Market Conditions - The chemical industry is experiencing lower-than-expected demand due to global economic inflation, geopolitical instability, and trade conflicts, leading to significant price declines for major products [5][9]. - The prices of key raw materials have shown mixed trends, with coal prices decreasing by 11.07% and industrial salt prices increasing by 5.27% compared to the previous year [18]. Important Resolutions - The board of directors has approved a profit distribution plan for 2024, indicating that no profit distribution will occur due to negative retained earnings [4]. - The company plans to change its auditing firm from Xinyong Zhonghe to Lixin Zhonglian for the 2025 fiscal year, following regulations regarding the tenure of auditing firms [61][70].