KMCJNC(SZ:300505)2023-11-06 07:34Group 1: Company Overview - The company, Kunming Chuanjinnuo Chemical Co., Ltd., was established in June 2005 and focuses on phosphorus as its core development area, forming three main business segments: traditional phosphorus chemical products, purified phosphoric acid, and new energy materials [2]. - The company's operational bases are located in Kunming, Yunnan, and Fangchenggang, Guangxi, with its headquarters in Kunming [2]. Group 2: Financial Performance - In the first three quarters of 2023, the company's revenue increased due to the full production of purified phosphoric acid and income from new energy materials, despite experiencing losses [3]. - The losses were attributed to significant declines in market prices for key products, including heavy calcium, which faced inventory issues and profitability challenges [3]. - The company sold 291,800 tons of heavy calcium in the first three quarters, with inventory returning to normal levels at approximately 24,000 tons by the end of September [3][4]. Group 3: Product Sales and Market Trends - In the first three quarters, the sales volume of purified phosphoric acid was 61,700 tons, with food-grade PPA accounting for about 60% and industrial-grade PPA for approximately 40% [4]. - The sales volume of crude phosphoric acid was 82,700 tons, primarily used in new energy and fertilizer products [4]. - The peak season for calcium dihydrogen phosphate sales is typically from May to October, with a gradual decline expected after November [4]. Group 4: Future Outlook and Strategic Measures - The company anticipates achieving positive net profit in the fourth quarter of 2023, following a gradual market recovery [3]. - Strategic measures to improve performance include optimizing business models, adjusting product structures, enhancing production processes for new energy materials, and expanding the domestic and international markets for purified phosphoric acid [3]. - The company is actively sourcing phosphate rock from both domestic and international markets, with a focus on North Africa for overseas procurement [4].