On October 13, Luxi Chemical disclosed its performance forecast for the first three quarters of 2020. The company expects the net profit attributable to the parent in the first three quarters to be 450 million to 480 million yuan, a year-on-year decrease of 45.48% -48.89%. However, the company's third-quarter performance has ushered in a reversal, with an estimated profit of 230 million yuan to 260 million yuan, an increase of 114.68%-142.68% over the same period last year.
The company stated that during the reporting period, due to the impact of the new crown pneumonia epidemic and the market, the production and sales volume and sales price of major products fell significantly year-on-year, and the performance fell year-on-year. In the third quarter, operating conditions continued to improve and increase.
Previously, Luxi Chemical's main business was fertilizers. Over the years, through transformation and upgrading, the company has transformed into a new chemical material company. The company's current main business is the chemical industry and chemical engineering industry. The main products cover more than 100 kinds of polycarbonate, hydrogen peroxide, caprolactam, nylon 6, and formic acid. Currently, revenue from new materials accounts for about 67% of the company's total revenue.
Since 2020, Luxi Chemical Industry has made frequent moves. Through the equity transfer, the actual controller of the company was changed from the Liaocheng State-owned Assets Supervision and Administration Commission to Sinochem Group; through the upcoming fixed increase, Sinochem Investment is expected to directly take over Luxi Group as the company's controlling shareholder. For Luxi Chemical Industry Group, the most direct impact is the better asset quality. Sinochem Group also intends to build the company into a high-end new chemical material production base and give full play to its existing chemical equipment production advantages.
On the evening of September 28, Luxi Chemical disclosed that it planned to acquire 56.25% of Luxi New Energy and 100% of Luxi Catalyst held by Luxi Group for 91.125 million yuan and 342 million yuan, respectively. In 2019 and the first half of 2020, Luxi New Energy's revenue was 217 million yuan and 68.424 million yuan, and the net profit was 2.6906 million yuan and 1.0497 million yuan respectively. Luxi Catalyst's revenue in 2019 and the first half of 2020 were 228 million yuan and 67.77 million yuan, and net profits were 42.92 million yuan and 14.736 million yuan respectively. After the transaction is completed, Luxi New Energy and Luxi Catalyst have become wholly-owned subsidiaries of the company.
Luxi Chemical said that this move is to further reduce the company's related transactions with Luxi Group subsidiaries, while optimizing resource allocation, achieving resource synergy, and enhancing the company's core competitiveness.
After years of transformation, Luxi Chemical has transformed into a new chemical material company, and its current main business is the chemical industry and chemical engineering industry. In 2019, Luxi Chemical's sales were about 18 billion yuan, and the sales of basic chemicals and new chemical materials accounted for 90%, and chemical fertilizers were reduced from 90% to less than 10%.
