Kasai Bio’s third-quarter results announced: the sebacic acid project was put into production, and the straw-based lactic acid project was successfully advanced

Latest News: On October 26, 2022, Kasai Bio announced its third-quarter results: in the first three quarters of 2022, the operating income was 1.838 billion yuan, a year-on-year increase of +4.79%; the net profit attributable to the parent was 4.86
RMB 100 million, +2.15% year-on-year; net profit after deducting non-return to the parent company of RMB 474 million, +4.55% year-on-year; weighted average return on equity was 4.54%, a year-on-year increase of 0.03
percent. The gross profit margin of sales was 35.42%, a year-on-year decrease of 1.09 percentage points; the sales net profit margin was 28.88%, a year-on-year increase of 0.42 percentage points. Financial expenses were -282 million yuan, compared with -130 million yuan in the same period last year.

2022Q3 realized operating income of 549 million yuan, -11.26% year-on-year, -12.55% month-on-month; realized net profit attributable to the parent of 150 million yuan, -8.47% year-on-year, and -7.52% month-on-month; realized non-return to parent net profit of 138 million yuan, year-on-year- 14.12%, -17.34% month-on-month; ROE was 1.41%, a year-on-year decrease of 0.14
percentage points, a decrease of 0.09 percentage points from the previous month. The gross profit margin of sales was 36.25%, a year-on-year decrease of 0.45 percentage points and a month-on-month increase of 2.26 percentage points; the sales net profit margin was 29.60%, a year-on-year increase of 1.48 percentage points and a month-on-month increase of 1.40 percentage points.

Reviews:

In the third quarter, the performance decreased and the gross profit margin increased.

In 2022Q3, the operating income was 549 million yuan, -11.26% year-on-year and -12.55% month-on-month; the net profit attributable to the parent was 1.50%
100 million yuan, year-on-year -8.47%, month-on-month -7.52%; net profit after deduction of non-return to the parent was 138 million yuan, year-on-year -14.12%, month-on-month -17.34%; return on net assets was 1.41%, a year-on-year decrease of 0.14 percentage points, a month-on-month decrease 0.09 percentage points. The gross profit margin of sales was 36.25%, a year-on-year decrease of 0.45 percentage points and a month-on-month increase of 2.26
percentage points; the net profit margin of sales was 29.60%, an increase of 1.48 percentage points year-on-year and a month-on-month increase of 1.40 percentage points. The quarter-on-quarter decline in performance in the third quarter came from two aspects: one was the impact of the epidemic, which adversely affected the company’s production; the other was that the company’s downstream products involved flavors, fragrances, hot melt adhesives and other products, and demand declined in the third quarter, which affected the company’s performance. Looking forward to the fourth quarter, downstream demand is expected to improve. At the same time, the company’s sebacic acid project is put into operation, and the company’s profitability is expected to improve.

The sebacic acid project is put into production and is expected to contribute to the increase in the fourth quarter

The 40,000-ton/year biological sebacic acid project located in Taiyuan Industrial Park, Shanxi completed the commissioning at the end of September. The trial production products of the production line have been recognized by domestic polymerization application customers, and international customers are in the process of acceptance. This is the first realization of sebacic acid. Large-scale industrialization of biological methods. The export price of sebacic acid has maintained a high level recently. After the project is put into operation, it is expected to contribute to the increase in performance in the fourth quarter.

During the construction of the polyamide project in Taiyuan Industrial Park, the company actively expands downstream applications with an annual output of 500,000 tons of bio-based pentamethylene diamine and an annual output of 90
The 10,000-ton bio-based polyamide project is under construction. The bio-manufacturing process has mild conditions, energy saving and carbon reduction. Therefore, bio-based materials are expected to achieve zero carbon or even negative carbon, which will play a significant role in reducing carbon emissions. In addition, the company’s bio-based polyamide products are used in lightweight occasions by replacing steel with plastic, and end products can reduce energy consumption due to weight reduction, and replace thermosetting materials with plastic to achieve material recycling, all of which can achieve beneficial contributions to carbon neutrality. . Sinoma Technology in the park plans to build an annual output of 30
The 10,000-ton high-performance glass fiber intelligent manufacturing production line project is expected to form an industrial chain synergy.

Vigorously promote the research of straw-based lactic acid technology and promote the reuse of biological waste

While investing in the application and development of bio-based polyamides, the company is actively exploring the sustainable development direction of green and environmental protection. In order to solve the long-term supply of bio-manufacturing raw materials and the reuse of bio-waste, the company is carrying out straw treatment and application in lactic acid production. The construction of the experimental and 10,000-ton-level demonstration line is progressing smoothly.