Sifang New Materials strives to achieve mass production of prefabricated concrete components within this year

Sifang Xincai announced the 2021 annual report and the 2022 first quarter report at the same time on the evening of April 22. Last year, the company achieved operating income of 1.350 billion yuan, a year-on-year increase of 14.49%; net profit attributable to the parent was 134 million yuan, a year-on-year decrease of 45.08%; net profit after deduction was 123 million yuan, a decrease of 46.83%, and earnings per share were 0.81 yuan. The company's 21-year profit distribution plan is 0.80 yuan (tax included) for every 10 shares.

From January to March this year, affected by the newly added subsidiaries in the scope of the consolidated statement, the company produced 743,400 cubic meters of commercial concrete, a year-on-year increase of 38.59%; produced 12,600 cubic meters of mortar; and achieved operating income of 308 million yuan, a year-on-year increase of 38.24%. However, due to the combination of factors such as the rising cost of diesel and the fierce competition in the commercial concrete market, the net profit attributable to the parent company was 31 million yuan, a year-on-year decrease of 22.57%. The net profit after non-deduction was 25.105 million yuan, a decrease of 32.23%, and the earnings per share was 0.18 yuan.

It is understood that in 2021, the company has increased its market share through mergers and reorganizations and increased market expansion efforts. The annual output of commercial concrete is 3.2613 million cubic meters, a year-on-year increase of 28.52%, thus achieving a significant increase in operating income. At the same time, in order to expand and strengthen the main business, enhance the ability to resist risks, continue to implement the integrated development strategy of commercial concrete and mining. The company has successively acquired 65% equity of Concrete High-tech and 100% equity of Guangcheng Building Materials, formed the second commercial concrete production base, and continued to consolidate the self-sufficiency of raw material sand and gravel aggregates.

However, due to factors such as the decline in the area of newly started real estate in the region and the fierce competition in the commercial concrete market, the price of commercial concrete in Chongqing fell significantly year-on-year, resulting in a decline in the company's gross profit margin. In addition, due to factors such as insufficient capital liquidity of downstream real estate development enterprises, the company's accounts receivable collection and bills receivable redemption risks have increased. The company expects that the credit impairment loss will increase, and the provision for asset impairment will reduce the total profit in the consolidated statement by 66.1937 million yuan.

Looking forward to 2022, Sifang New Materials said that it will continue to focus on its main business to carry out various operations, steadily promote the implementation of fundraising projects, and strive to achieve mass production of prefabricated concrete products within the year. Deeply cultivate the commercial concrete market in Chongqing, further increase the sales volume of commercial concrete, and gradually realize regional expansion and increase of market share. Focusing on the regional development plan, actively promote the multi-point layout in key areas such as Liangjiang New District and High-tech Zone, actively promote the reserve of upstream mineral resources, and provide a strong guarantee of raw materials for future scale expansion.