The net profit of Zhonghe in Xinjiang increased by 149.82% in 2020.

Recently, Xinjiang Zhonghe Co., Ltd. (referred to as "Xinjiang Zhonghe") released its annual report for 2020. According to the annual report, in 2020, Zhonghe in Xinjiang achieved an operating income of 5.717 billion yuan, an increase of 20.42 percent over the same period last year, and a net profit of 351 million yuan for shareholders of listed companies, an increase of 149.82 percent over the same period last year.

Enhance the profitability of enterprises

In 2020, the aluminum foil material and high-performance aluminum alloy industry for aluminum electrolytic capacitors in Xinjiang were also affected by the novel coronavirus epidemic, but due to the growth of demand in the fields of consumer electronics, new energy, aviation, aerospace and national defense, to a certain extent, offset the impact of the epidemic, the industry shows a first suppression and then a rising trend, showing a good trend of development.

In the face of the complicated economic situation and the great difficulties once caused by the epidemic, Zhonghe in Xinjiang closely revolves around the annual business target plan, looks for opportunities in times of danger, resolutely implements the main line of high-quality development, vigorously adjusts the market structure, and continues to promote scientific and technological innovation. increasing efforts to reduce costs and fees has better grasped the opportunities for the development of the industry and enhanced the company's competitiveness and profitability.

In 2020, in the face of the situation that the foreign market was more seriously affected by the novel coronavirus epidemic than the domestic market, Zhonghe in Xinjiang made great efforts to adjust the market structure, increase investment in the domestic market, form strategic cooperation with major customers, and at the same time strengthen the adjustment of product structure. strengthen the market development of high value-added products, take high value-added, cost-effective products as the drive, and steadily increase the market share of the main products.

At present, Xinjiang Zhonghe has established close cooperative relations with many international and domestic well-known manufacturers, such as Guimigong, Nijikang, Panasonic, Sanyo, Lilong Electronics, Gree Electric Appliances, as well as Aili Aluminum Industry, Aerospace Science and Technology, Beijing Institute of Aeronautical Materials and other units in the aerospace field.

In terms of scientific and technological innovation, Zhonghe in Xinjiang has continuously increased investment in research and development, improved the incentive mechanism for scientific research and innovation, continuously promoted the development and improvement of process technology of major products according to market demand, and achieved certain results, and the product structure has been adjusted. Product profitability has been further improved. During the reporting period, high-purity aluminum products broke through the three-layer method to purify 5N high-purity aluminum at one time, and the capacity of new electronic aluminum foil products reached the level of leading foreign enterprises; the corrosion capacity of corrosion foil increased by 5% compared with the same period last year; and the gross profit margins of high-purity aluminum, electronic aluminum foil and electrode foil products all increased compared with the same period last year. At the same time, according to the demand for new materials in the development of aerospace, semiconductors, integrated circuits and other industries, the company has actively responded to the national dual-cycle development pattern and vigorously carried out independent innovation of products such as ultra-high purity aluminum-based target blanks, high-strength and high-toughness aluminum alloys, and achieved batch and industrial output, providing a new driving force for the company's future development.

In addition, Zhonghe in Xinjiang has stepped up efforts to reduce costs and fees and actively deepen cost, quality control and process improvement. During the reporting period, the gross profit margin of the company's new electronic materials, alloy products and aluminum products increased over the previous year, of which the gross profit margin of high purity aluminum increased by 2.35% over the previous year, and that of electronic aluminum foil increased by 3.09% over the previous year. The gross profit margin of electrode foil increased by 2.57% over the previous year, the gross profit margin of alloy products increased by 1.98% over the previous year, and the gross profit margin of aluminum products increased by 1.74% over the previous year.

In terms of the construction of the industrial chain, the "high-performance high-pressure corrosion foil project with an annual output of 15 million square meters" and the "high-performance high-pressure foil forming project with an annual output of 15 million square meters" have been put into production one after another, expanding the scale of the back end of the industrial chain. The investment income of Tianchi Energy in Xinjiang Zhonghe, which is based on safety investment in the industrial chain, increased by 110.71% in 2020 compared with the same period last year, partly hedging the increase in power generation costs and purchased power costs caused by rising prices such as coal. The further improvement of the front end and back end of the industrial chain has enhanced the overall anti-risk ability of the company, better responded to the impact of novel coronavirus epidemic and macroeconomic fluctuations, and maintained a good profit level.

The market has broad prospects for development.

Looking to the future, Zhonghe in Xinjiang is optimistic about the development prospect of the main product market. According to the annual report, with the rapid rise of new energy electric vehicles and new energy power generation, large-capacity and high-quality aluminum electrolytic capacitor products will be used more widely. it also provides a broad market development space for the upstream aluminum foil industry for aluminum electrolytic capacitors. At the same time, under the guidance of national policy, with the development and progress of electronic industry, aerospace, national defense science and technology and other fields, high-performance aluminum alloy materials urgently need to speed up the process of localization and realize domestic substitution as soon as possible. the market prospect is broad in the future.

In 2021, Zhonghe in Xinjiang will continue to adhere to the concept of high-quality development, speed up transformation and upgrading, and improve the competitiveness of the company by optimizing industrial layout, adjusting product structure, reducing production costs and increasing market share. Adhere to scientific and technological innovation, take innovation leading development as the strategic core, adopt a multi-pronged approach in the construction of innovation platform, the guarantee of innovation resources, the optimization of innovation mechanism and the creation of innovation environment, so as to speed up the speed of mass production of new product research and development. Relying on the advantages of a complete industrial chain, we will continue to deepen the development strategy of high-purity aluminum-based new materials, enhance the competitiveness of new aluminum electronic materials, improve the market share of high-strength and high-toughness aluminum alloy products in the aerospace and aviation field, and enhance the independent and controllable ability of the industrial chain. support the company's high-quality development.

Zhonghe in Xinjiang is expected to achieve operating income of 6.2 billion yuan (consolidated statement) and operating cost within 5.15 billion yuan (consolidated statement) in 2021.

In 2021, Xinjiang Zhonghe will usher in new opportunities for historical development. As a national strategic emerging industry, the development of new material industry will be strongly supported by national policies. Zhonghe in Xinjiang will also keep up with the pace of the industry, continue to strengthen and optimize the circular economy industry chain of "energy-high purity aluminum-electronic aluminum foil-electrode foil" new aluminum-based materials, deepen the development of aluminum-based electronics and electricians, maintain a good level of profitability, and promote the high-quality development of enterprises. a good start and a good start for the development of the 14th five-year Plan.