Xingfa Group reports impressive financial performance with 37.85% net profit increase in Q1-Q3 2024

Date:11-06-2024

Hubei Xingfa Chemicals Group (hereinafter referred to as "Xingfa Group") recently announced its performance for the third quarter of 2024. In the first three quarters of 2024, Xingfa Group achieved significant growth, with operating income reaching 22.05 billion yuan, a year-on-year increase of 0.04%, and net profit attributable to shareholders of the listed company amounting to 1.314 billion yuan, a year-on-year increase of 37.85%.

This growth is mainly due to the recovery of the agrochemical market, particularly the enhanced profitability of phosphate ore, phosphate fertilizer, and glyphosate products, as well as the positive development of the specialty chemical sector.

Xingfa Group's growth in the glyphosate market is attributed to its international strategy and the development of its formulation business. The company has established production bases and marketing platforms in countries such as Indonesia and Ghana, promoting the layout and promotion of overseas markets. Additionally, strategic cooperation with domestic and international partners has ensured stable business growth.

Regarding the phosphate ore market, Xingfa Group expects the supply and demand relationship to remain tightly balanced, with prices likely to maintain a good level of prosperity. The company plans to significantly increase phosphate production capacity within the next five years by advancing exploration to mining work through its holding and joint venture companies with proven phosphate ore reserves, as well as by integrating resources and acquiring more high-quality phosphate ore resources through mergers and acquisitions.

In the phosphate fertilizer market, Xingfa Group anticipates that international phosphate fertilizer prices will remain at a good level, supported by global attention to food security and the expansion of the new compound fertilizer market. As for ferrous phosphate, the company has increased its production rate, significantly reducing losses and increasing efficiency, with a future focus on product quality improvement and customer expansion.

Xingfa Group has also added a new fluorite mine, expected to submit a large fluorite mine with resources exceeding 1.8 million tons. In terms of black phosphorus development, the company has built a 100-kilogram scale-up experimental device and has achieved sales revenue, with an expected 400,000 yuan in sales for 2024.

Xingfa Group's future capital expenditure will mainly focus on upstream mineral resource acquisition and downstream development of specialty chemicals and new material products, with R&D investment continuing to maintain a stable trend. The company will adhere to an innovation-driven development strategy, accelerating the transformation and upgrading from a traditional chemical enterprise to a modern technology-oriented, green chemical new material enterprise, continuously enhancing its core competitiveness, and promoting high-quality development.