Business income from photovoltaic glass and other businesses increased significantly, and Ancai Hi-Tech H1 net profit increased by 432.16%

On the evening of August 13, Ancai Hi-Tech released a semi-annual report stating that the net profit attributable to the owners of the parent company in the first half of the year was 179 million yuan, a year-on-year increase of 432.16%; operating income was 1.63 billion yuan, a year-on-year increase of 55.89%; basic Earnings per share was 0.2076 yuan, an increase of 432.31% year-on-year.

According to Ancai Hi-Tech, the company’s photovoltaic glass segment achieved a cumulative operating income of 758 million yuan in the first half of the year, a year-on-year increase of 100%; the natural gas segment achieved a cumulative operating revenue of 868 million yuan in the first half of the year, a year-on-year increase of 38.22%.

During the reporting period, affected by the rising prices of silicon materials and bulk commodities, the construction cost of photovoltaic power plants increased and the market driving force weakened. In addition, in 2020, the out-of-stock price of photovoltaic glass has risen sharply, and photovoltaic glass manufacturers are speeding up the construction of new capacity projects. As of the end of the second quarter, photovoltaic glass production capacity increased by 46.93% year-on-year. Affected by this, the price of photovoltaic glass has gradually adjusted downward from a high level. As of the end of the second quarter, the price of 3.2mm photovoltaic glass coating products fell by more than 40%. In the face of the above-mentioned unfavorable factors, the company improved production efficiency through lean management, deepened internal potential, and reduced costs. The photovoltaic glass business maintained a profitable trend.

During the reporting period, Ancai Photovoltaic New Materials, a wholly-owned subsidiary of the company, operated a 900-ton/day photovoltaic glass production line with an annual production capacity of approximately 39 million square meters. According to data released by Zhuochuang Information, as of the end of the reporting period, the company’s photovoltaic glass furnace production capacity accounted for approximately 2.5% of the domestic photovoltaic furnace production capacity, ranking ninth in the country.

During the reporting period, the sales scope of Ancai Hi-Tech LNG business centered on the northern Henan market and radiated to other regions in Henan and surrounding cities. Relying on the advantages of its own gas station scale and terminal distribution capabilities, the company goes all out to increase sales, reduce costs, and expand the market. In terms of liquid source procurement, we will continue to promote LNG strategic procurement to reduce liquid source costs; in terms of natural gas trading, we will carry out in-depth cooperation with major customers to ensure customer supply and increase trade volume. In terms of terminal retail, we will stabilize market share by strengthening market development, optimizing customer management, and improving service quality. In northern Henan, the company’s LNG sales account for about 50%.

The LNG and CNG business of Ancai Hi-Tech is mainly operated by Ancai Hi-Tech and its wholly-owned subsidiary Ancai Gas, including a 100,000 m3 liquefied natural gas (LNG) plant and 60,000 m3 of compressed natural gas (CNG) per day. There is one standard station, and more than 10 LNG/CNG refueling station operations and LNG trading businesses that are self-operated or jointly operated with partners in Anyang City and surrounding counties and cities.