Changbao previously released its annual report for 2021, which showed that Changbao achieved an operating income of 4.226 billion yuan in 2021, an increase of 7.22% over the same period last year, while the net profit of shareholders belonging to listed companies reached 136 million yuan, an increase of 9.85% over the same period last year. Operating income and net profit remained positive in the four quarters of 2021, with a sharp decline in the third and fourth quarters.
Changbao said that due to the continued impact of the COVID-19 epidemic in 2021, domestic and foreign market demand continued to decline, large quantities of raw materials rose sharply and remained high, and the increase in raw materials was greater than that of product prices. At the same time, the rise in natural gas prices, foreign trade and sea freight charges, the cancellation of export tax rebates, energy consumption double control policy and other factors led to an increase in overall costs and a decline in the profitability of the company's steel pipe business.
The company's main products are the R & D, production and sales of oil and gas production tubes, power station boiler tubes, construction machinery and petrochemical tubes and other special tubes in market segments. The industry where the company's steel pipe products are located is divided into stable and mature markets and professional market segments with large market space. The company's steel pipe business income accounts for 97% of the current income, which is the main source of the company's income.
It is worth noting that the PQF production line of Changbao Co., Ltd. was put into trial operation on June 18, 2021. The PQF production line adopts the world's most advanced production equipment and technology, and introduces the world's first latest technology PQF continuous rolling mill designed and manufactured by Germany's West Mark. The production line has the advantages of high precision of product wall thickness, high level of intelligent manufacturing and advanced technology.
The completion of this project will make Changbao's product variety and quality reach the international advanced level, and the annual output of high-end special pipe will reach 1 million tons.
