Hongchang Electronics 155,000 tons of resin project technical reform completed, the first three quarters of profit increased by 75%

Recently, Hongchang Electronics officially released its third-quarter results announcement: January-September, the company achieved operating income of 1.159 billion yuan, a decrease of 3.79 percent year-on-year, and a net profit of 78.58 million yuan, up 74.58 percent year-on-year. The net profit figures are fully in agreement with Hongchang Electronics' pre-announcement of the first three quarters of the year.
01 Reasons for the increase in performance
Hongchang Electronics said that the company's performance in January-September 2020 showed a substantial increase, the main benefits are

two points:
1, do a good job in the prevention and control of the epidemic, improve capacity utilization, reduce production costs, gross product margin increased significantly compared to last year
;
02 Main operating data
Hongchang Electronics is mainly engaged in the production and sale of electronic-grade epoxy resin, products include liquid epoxy resin, flame retardant epoxy resin, solid epoxy resin and solvent-based epoxy resin. In 2019, Hongchang electronic epoxy resin products produced 921,000 tons, sales of 927,000 tons, in the first half of 2020 epoxy products production of 424,000 tons, sales of 420,000 tons.
Compared with the same period last year in the first three quarters of 2020, Hongchang electronic epoxy resin sales decreased slightly (-1.14%), and the average price of epoxy resin also decreased slightly (-2.6%), so epoxy resin sales in the first three quarters of 2020 were 1.157 billion yuan, down 3.7% from the same period last year.
03 The price of raw materials has fallen considerably
bisphenol A and epoxy propane, the two main raw materials for epoxy resins, have seen a significant decline in the average feed price of primary raw materials in the first three quarters of 2020 compared to 2019: the average feed price of bisphenol A decreased by 11.57 per cent year-on-year, and the average feed price of epoxy propane decreased by 17.59 per cent. But the price of acetone, the raw material, has risen sharply, by 85 per cent.
Hongchang Electronics' production base in Zhuhai, which started production in May 2018, currently has an annual production capacity of 80,000 tons of epoxy resin, and has increased its annual epoxy resin production capacity by 75,000 tons by increasing equipment utilization, etc. With the completion of the expansion project, the Zhuhai plant will have an annual production capacity of 155,000 tons of epoxy resin. In October 2019, Zhuhai Plant obtained a new "Safety Production License" issued by Zhuhai Emergency Management Agency (Guangdong Pearl Dangerous Chemical Word No. 0063). On May 13, 2020, the environmental acceptance review meeting was passed, the project acceptance was announced on July 20, 2020, and the environmental acceptance record of the expansion project was completed.
first half of 2020, the company completed the "high-frequency high-speed 5G circuit board resin" product pilot, sample customers and passed the initial certification of some customers. At present, has fully entered the product marketing and internal mass production planning stage, the second half of the product sales in small quantities.