Puyang Refractories reports sales up 15.75% YoY in H1 2022

2022-08-18

Aug. 18, 2022 - In the first half of 2022, Puyang Refractories (PRCO, the company) achieved revenue of 2.538 billion yuan, a year-on-year increase of 15.75%, and realized a net profit attributable to shareholders of the listed company of 169.3036 million yuan, a year-on-year increase of 41.76%. Among them, the steel business realized an sales of 2.257 billlion yuan, a year-on-year increase of 16.28%; the raw material business realized an sales of 219.7 million yuan, a year-on-year decrease of 11.69%. Overseas sales accounted for 32.47%, compared with 20.96% in the same period last year, mainly due to the increase in overseas sales orders.

During the reporting period, the net profit attributable to shareholders of the listed company increased by 41.76% year-on-year. The main reasons were as below. First, PRCO’s overseas sales increased by 79.29% year-on-year, while the sea freight did not rise significantly as in 2021, making the overseas sales profit contribute significantly; Second, the exchange rate of CNY against the US dollar depreciated, resulting in an increase in foreign exchange gains.

In order to better develop overseas markets and serve customers in America and Europe, the company continues to promote the construction progress of its subsidiaries in the United States and Serbia.

The construction of the U.S. production base can solve the problem of anti-dumping duties imposed by the United States on Chinese magnesia-carbon brick, and make the company's products more competitive in the U.S. market. The plant is designed to produce 20,000 tons of magnesia-carbon brick annually. At present, the civil construction and equipment installation has been completed, and the commissioning is underway. It is expected to be officially put into operation in October this year.

The company will release production capacity in Europe as soon as possible after acquiring the Serbian subsidiary in 2021 to improve the company's competitiveness and service quality in Europe. The first phase of the plant is designed to have an annual production capacity of 30,000 tons of magnesia-carbon brick and 10,000 tons of monolithic refractories. The second phase is designed to produce 20,000 tons of magnesia-carbon brick. At present, the equipment of the Serbian subsidiary is being installed and commissioned one after another, and it is expected to start trial production in the fourth quarter of this year.