The performance of the sub-sectors of the chemical industry segment has worsened

As of April 22, a total of more than 710 listed companies in the Shanghai and Shenzhen markets announced the first quarter of 2012 performance report, only 37 of the 100 chemical companies in the performance increase. According to the quarterly report, the main business income of the 100 chemical companies was 70 billion yuan and the net profit was 2.47 billion yuan, down 8% and 34% year-on-year respectively. At the same time, the performance of various sub-sectors worsened.

From the published data, the overall operating status of listed companies in the first quarter is not optimistic. The chemical sector is even more so, and the sub-sectors are not happy. Statistics show that there should be more obvious warming of the agrochemical sector. Red Sun's performance is the fastest growing among chemical stocks. It is expected that net profit in the first quarter will be 56.2 million to 65.6 million yuan, an increase of 9026% year-on-year. It will take second place among all listed companies that have already announced pre-joy. Thanks to the spring plowing production, the overall recovery of the pesticides and fertilizers sector showed signs of improvement. After a change in the trend, Weiyuan Biochemical, Sanonda, Kim Jongda, Stanley and other net profits all increased by more than 50% year-on-year. However, industry sources said that whether the profitability of this sector can be observed remains to be seen.

The chemical intermediates listed companies such as Lianhua Technology, Yaben Chemical, and Tianma Refinement are all on the rise. The profit of the listed companies of resources continued to grow, and the Xingfa Group stated that the reason for the increase in performance was attributed to the increase in prices of the leading products such as phosphate ore and phosphate. The report shows that in 2012 the company achieved operating income of 2.1 billion yuan in the first quarter, an increase of 54%; net profit of 65.59 million yuan, an increase of 70%.

However, it should be seen that many chemical companies have turned a turning point in their profitability in the first quarter. The early-warning chemical stocks head for the emerging industry, Jigang Carbon, is expected to reduce its net profit by more than 858.01% year-on-year. In 2011, the performance of fluorine chemical companies listed in the net profit continued to narrow, and Juhua’s shares and fluorinated products decreased by more than 30% year-on-year. Juhua said that the industry’s boom period has passed.

Chemical fiber industry also showed a clear decline in earnings. The severe decline in the industrial prosperity of the industry belongs to the photovoltaic energy sector. At present, nearly 80% of the country's polysilicon production companies are in production or semi-discontinued state. In the development, production and sales of lithium battery materials, Ascend Technology has become the first annual report loss-making company since the establishment of the GEM in 2009. It is estimated that the net profit loss will be 728,000 yuan. The company's IPO major investment project - the annual output of 3,900 tons of lithium cathode material production base project was renewed.