Lianhong xinke net profit growth of 70%, Lenovo holdings can help continue to break the situation

2022-06-17 0 By

On March 29, Lianhong Xinke released the 2021 annual report, 2021 to achieve operating revenue of 7.581 billion yuan, the same increase of 27.81%, to achieve net profit of 1.091 billion yuan, the same increase of 70.24%.Among them, Q4 achieved revenue of 1.915 billion yuan, decreased by 2.79% and increased by 4.07%, and realized net profit of 269 million yuan, increased by 23.32% and decreased by 4.37%, in line with expectations.High photovoltaic demand drives EVA resin volume and price rise.In 2021, EVA resin achieved revenue of 2.597 billion yuan, with a 93.61% increase, gross margin of 50.52%, with a 12.84PCT increase, mainly due to the rapid growth of downstream photovoltaic demand, and the long expansion cycle of EVA devices, high-end products climbing uncertainty leading to the stage of supply and demand tension, EVA resin volume and price rose together.The annual sales volume of EVA resin was 137,600 tons, with an increase of 7.84%, in which the sales volume of photovoltaic materials increased by about 42%;The annual average sales price was about 19,000 yuan/ton, with an increase of about 80%.In 2021, the prices of methanol, raw coal and vinyl acetate, the main raw materials of the company, will increase significantly. The company ensures a high level of profitability by relying on technological cost advantages and integrated layout.Product mix continued to optimize.In 2021, the capacity utilization rate of each unit of the company will remain high, with PP/EO/EOD sales of 22.16/6.19/162,800 tons respectively.The company actively optimize the PP product structure, high melt irregular copolymerization PP special material sales increased by about 12%, successful research and development of high transparent PP special material;The sales volume of EOD products increased by 16.79%, and the export volume of its subsidiary Jiangsu Chaoli mother liquor made a breakthrough, increasing by about 313%.New material platform layout highlights high growth.1) Photovoltaic materials: Technical transformation of EVA device has been completed in 22Q1, which can increase the annual capacity to more than 150,000 tons and increase the proportion of high-end products;90,000 tons/year vinyl acetate plant is expected to be completed in 1H23, extending the industrial layout upward;2) New energy battery materials: the 100,000-ton/year lithium electric-carbonate joint device project is expected to be completed in CCCC by the end of 2022, and electrolyte solvent materials will be distributed;A 20,000mt/yr UHMWPE unit is expected to be built on 1H23, with wet diaphragm raw materials.3) Biodegradable materials: The PLA whole industrial chain phase I project is expected to be completed and put into operation by the end of 2023, and the 50,000-ton/year PPC industrial production line has started construction.At present, Lianhong Group holds 51.77% of lianhong xinke’s shares and is the controlling shareholder of the company.Legend Holdings is the sole shareholder of Lianhong Group.Lianhong Xinke, which landed on the small and medium board at the end of 2020, is built by Legend Holdings from greenfield investment.As early as before the establishment of Lianhong Xinke, Legend Holdings has begun to explore into a new field, to help the country to solve some high-end materials import dependence is high.Then, starting from greenfield investment, Legend Holdings helped Lianhong Xinke continue to “break the situation” through resource investment and cultural empowerment.Lianhong xinke said that Legend holdings through capital, brand and culture to build a career stage for it, without Legend holdings would not have lianhong Xinke business.Ning Min, chairman of Legend Holdings, is a witness of tengzhou base construction. He has been to Tengzhou many times to help coordinate and solve difficult problems in the construction process.Ning Min regrets that from a wasteland to today’s IPO, Lianhong Xinke has experienced numerous difficulties and paid extremely hard efforts.At the same time, Legend holdings also did its best to fully empower and support, “from the selection of direction, to determine the leader, to set up the core team, to provide brands, coordinate all resources, as well as management methods and cultural output;What is more important is a series of heavy financial support, from the initial provision of capital, to project loans, syndicated loans, working capital loans and so on for the construction of the project.””It proves that industrial investment can be done and that we can walk the walk when we say we are going to do it.”Li Peng, Legend’s chief executive, sees the IPO as a typical example of his company’s “manufacturing excellence”. “Our ability to start with greenfield projects in a brand new industry fully proves that both shareholders and management need long-term mentality and commitment to build core assets.”