Summary: In early July 2024, a number of phosphorus chemical companies released their performance forecasts for H1 2024. Net profits of Hubei Yihua and Yunnan Yuntianhua are expected to increase YoY while net profits of Jiangsu Chengxing are expected to decrease YoY.

Hubei Yihua Chemical Industry Co., Ltd. (Hubei Yihua)

On 8 July, 2024, Hubei Yihua released its H1 2024 performance forecast, estimating net profits attributed to shareholders of the listed company to be USD71.56 million–USD79.98 million (RMB510.00 million–RMB570.00 million), up by 102.09%–125.87% YoY.

Hubei Yihua said the main reasons for the change in performance are as follows:

• Following closely the market situation of leading products, such as urea, diammonium phosphate (DAP), polyvinyl chloride (PVC), and caustic soda; dynamically adjusting its production rhythm, product research and development and market development to ensure the efficient and stable operation of its production facilities.
• The repurchase of a minority stake in Hubei Yihua Fertiliser Industry Co., Ltd. and the commissioning of new projects effectively reduced the cost of liquid ammonia and further improved the profitability and market competitiveness of DAP.

 

Yunnan Yuntianhua Co., Ltd. (Yunnan Yuntianhua)

On 10 July, 2024, Yunnan Yuntianhua released a forecast of its performance for H1 2024, showing that net profits attributed to shareholders of the listed company are predicted to reach around USD397.11 million (RMB2.83 billion), a YoY increase of approximately 5.69%.

 

Yunnan Yuntianhua said the main reasons why its performance will increase in H1 2024 are as follows:

• The company's major products such as fertiliser, polyformaldehyde, and feed grade calcium achieved stable profits.
• The company's "mining and chemical integration" and the whole industry chain operation advantages continued to develop; the procurement costs of major raw materials such as sulphur and coal decreased YoY.
• Financial costs decreased YoY, the operating performance of joint-stock companies improved, and the amount of non-recurring profit and loss, such as gain and loss on disposal of non-current assets, decreased YoY.

 

Jiangsu Chengxing Phosph-Chemical Co., Ltd. (Jiangsu Chengxing)

On 11 July, 2024, Jiangsu Chengxing released its performance forecast for H1 2024, expecting net profits attributed to shareholders of the listed company to be -USD2.79 million–-USD1.88 million (-RMB19.88 million–-RMB13.37 million), up by 84.95%–85.72% YoY.

 

Jiangsu Chengxing said the main reasons for the net losses in H1 2024 are as follows:

• The sales prices of yellow phosphorus and phosphoric acid prices decreased compared with the same period last year, and the mainstream prices continued to move down and fluctuated at a low level.
• The supply of upstream phosphorus ore continued to be tight, and the mainstream prices continued to rise, further narrowing yellow phosphorus profits.
• The company continued its investment in technological reform, safety and environmental protection to accelerate transformation and upgrading, which also led to poor performance.