It is expected that the net profit attributable to shareholders of listed companies in 2019 will be 1.06 billion to 1.16 billion yuan, a year-on-year decrease of 58.65% -62.21%. In addition, the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 919 million to 109 million yuan, a year-on-year decrease of 62.14% -65.85%.


The announcement mentioned that due to macroeconomic factors such as the Sino-US trade war and the slowdown of domestic and foreign economic growth in 2019, the overall demand for industrial silicon downstream aluminum alloy industry and organic silicon industry fell, resulting in a low consolidation of industrial silicon prices; at the same time, organic silicon The demand side is also generally sluggish, and prices of organic silicon products have fallen sharply. Affected by the above, the price of the company's main products in 2019 fell year-on-year. Although the company's main raw material methanol and methyl chloride purchase prices also fell year-on-year, the price of major products fell more than the decline in the price of major raw materials, making the company attributable to listing in 2019. The company's shareholders' net profit decreased year-on-year.


Invest heavily in Yunnan, dominate the dominance


On December 5, 2019, Hesheng Group signed a strategic cooperation framework agreement with the Yunnan Provincial People's Government. It plans to invest in the construction of the “Hesheng Silicon Industry Zhaotong Hydropower Silicon Circular Economy Project” in Zhaotong, Yunnan, which specifically includes 800,000 tons of organic silicon monomer. Supporting 800,000 tons of industrial silicon, 500,000 tons of coal-based organic raw materials, and downstream processing projects of siloxane, which are divided into the first phase of 400,000 tons and the second phase of 400,000 tons. The company was the leader of the silicon industry in Xinjiang. The industrial silicon production capacity of 850,000 tons ranked first in the world. This expansion of Yunnan has not only realized the spread from thermal power to hydropower, but also a total of 1.65 million tons of industrial silicon and 1.43 million tons of organic silicon. The scale of production has deepened the dominance of the industry.