Home / Metal News / Copper / Do-Fluoride Chemicals’ profits down 47.61% YoY in 2012
Do-Fluoride Chemicals’ profits down 47.61% YoY in 2012
Mar 27,2013 10:25CST
smm insight
Source:SMM
According to Do-Fluoride Chemicals’ 2012 annual report, the company reported RMB 1.44 billion in business revenues last year, up 5.22% YoY.

SHANGHAI, Mar. 27 (SMM) – According to Do-Fluoride Chemicals’ 2012 annual report, the company reported RMB 1.44 billion in business revenues last year, up 5.22% YoY. However, profits attributable to its listed company declined 47.61% YoY to RMB 42.05 million. Earnings per share were RMB 0.19, also down 47.22% YoY.       

The company attributes its falling profits in main business to slack demand overseas for fluoride salt and falling prices. On the other hand, high gross profits from its new product lithium hexafluorophosphate did help offset its losses to some extent. Gross profit margin of lithium hexafluorophosphate was 63.05%. 

In 2012, the company acquired Silver Zhongtian Chemical at a cost of RMB 73 million in response to policy regarding transferring aluminum capacity from east China and the west. Its phase one 1,000 mt/yr lithium hexafluorophosphate project and support lithium fluoride production lines entered production, contributing to its profit growth. Cryolite and anhydrous aluminum fluoride accounted for 15.6% and 50.6% of its total business revenues, but gross profit margins in these two products were down 7.42% and 1.91%, respectively. 

Markets share of fluorides is being squeezed. Cryolite is being gradually replaced by electrolyte, while competition among anhydrous aluminum fluoride producers is becoming increasingly fiercer due to severe overcapacity and limited demand growth. Some enterprises even suspended production to support prices last year against continuously falling anhydrous aluminum fluoride prices. SMM believes aluminum fluoride capacity will continue to grow for the foreseeable future, which is bound to further intensify competition in the industry.    

 

profits at Do-Fluoride Chemicals in 2012
fluoride salt
anhydrous aluminum fluoride

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn