According to the Zhitong Finance APP, YAXING CHEMICAL (600319.SH) announced a pre-loss forecast for its 2024 annual performance, estimating a net loss attributable to shareholders of the listed company between 95 million yuan and 115 million yuan, indicating a loss compared to the same period last year (statutory disclosure data).

During the reporting period, the company's production and operation work progressed steadily, with output and operating income showing a continuous recovery growth trend since the relocation. Through technological transformation, the company has increased the capacity of its CPE unit from 50,000 tons/year to 80,000 tons/year, resulting in increased production and sales volume, and a significant decrease in unit production costs compared to the same period last year. However, due to the intensifying market competition for products, the decline in market prices has exceeded the decline in costs, leading to a lower gross profit margin. Additionally, the company is still in the relocation construction phase, with only three production units in operation, resulting in a large allocation of fixed costs such as personnel costs and initial public utility investment costs, which compresses the profit margin of products. Furthermore, the company is constructing a 45,000-ton high-end new materials (PVDC) project, a 12,000-ton hydrazine project (hydrogen peroxide method), a 500-ton/year hexachlorocyclotriphosphazene industrialization project, and a 500-ton/year benzalkonium chloride industrialization project. To ensure the funding needs for these projects, the financing amount has increased, leading to higher financial expenses compared to the same period last year. In summary, the net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, is expected to decline year-on-year in 2024.

During the reporting period, the company received a compensation payment of 50 million yuan for losses due to relocation and shutdown, confirming the income related to the shutdown losses associated with the relocation. Additionally, the company received a relocation incentive payment of 9.6 million yuan during the reporting period. These matters are expected to confirm an income of 59.6 million yuan, which will increase the net profit attributable to shareholders of the listed company and the net assets at the end of 2024