Zhongfu Industrial Co., Ltd.: 2021 performance turnaround, restructuring and listing ready to start

Zhongfu Industries recently disclosed a profit forecast for 2021, which shows that the annual performance in 2021 is expected to achieve a net profit of about 600 to 650 million yuan attributable to shareholders of listed companies.

The net profit of Zhongfu Industrial Co., Ltd. was-1.783 billion yuan, mainly due to impairment losses and liquidated damages for overdue debts. In December 2020, Zhongfu Industries was tried to delist risk tips because it was involved in restructuring. In December 2021, Zhongfu said it had completed its restructuring plan and submitted an application to cancel the delisting risk warning.

According to the quarterly results report of Zhongfu Industry in 2021, the net profit of shareholders belonging to listed companies in the first quarter was 173 million yuan, the cumulative net profit in the first half of the year was 385 million yuan, and the net profit in the third quarter reached 119 million yuan.

Zhongfu Industry has formed an integrated industrial chain of "coal-electricity-aluminum-aluminum intensive processing". Its main business is related to the production, sales and technical research and development of coal mining, thermal power generation, electrolytic aluminum and aluminum intensive processing products. The main products include can body material, can cover material, pull ring material, high-grade double zero aluminum foil wool, high surface anodizing material for 3C electronic products, high-performance plate for oil tanker, blank for automobile plate, aluminum foil wool for new energy battery package, aluminum alloy wheels, master alloy, refined aluminum ingot, aluminum bar and so on. End products can be widely used in the fields of FMCG packaging such as cans, Tetra Pak bags, aseptic bags, automotive lightweight and consumer electronics.

In 2021, Zhongfu Industry also increased its product sales compared with the same period last year by continuously increasing the domestic and foreign market development of aluminum intensive processing business. In addition, due to the influence of the industry and market, spot aluminum ingot prices rose. Zhongfu Industry's green hydroelectric aluminum output further increased, and its electrolytic aluminum capacity utilization rate reached 97.15%.

At the same time, it is worth noting that in October 2021, Zhongfu Industry invested in Henan Zhongfu High Precision Aluminum Co., Ltd. with an annual output of 120000 tons of high precision aluminum plate and strip. The production equipment of this project is mainly one new 2300mm single stand cold rolling mill and two 2300mm high speed edge trimmers. After the completion of the project, Zhongfu's aluminum intensive processing capacity will be expanded from 450000 tons / year to 570000 tons / year, and the synergistic effect of electrolytic aluminum and aluminum intensive processing capacity will be further enhanced.