Recently, the first quarter performance report of listed companies has been released. Judging from the reports of various companies, affected by the pandemic, the net profit of most dye listed companies has declined to varying degrees year-on-year, but some companies have achieved a significant increase in net profit against the trend.

Although affected by the pandemic, most companies experienced a year-on-year decline in net profit in the first quarter, but two companies rose against the trend. Among them, Anshan Hifichem Co., Ltd. data is particularly eye-catching. The company’s total operating revenue for the first quarter of 2020 was 176 million yuan, an increase of 19.84% year-on-year; its net profit was 36.9446 million yuan, an increase of 141.13% year-on-year. Its profit margin has reached 20.99%, becoming the second-highest profitable dye listed company.

Anshan Hifichem Co., Ltd. said in its first quarterly report that the main reasons for the sharp increase in net profit include four points: First, the company’s production and sales scale has expanded, sales revenue has increased, capacity utilization has increased, scale effects have appeared, and unit product costs have fallen, driving overall gross profit margins increased; second, the proportion of high-margin product sales increased, and the corresponding increase in gross profit; third, continued increase in R&D investment, technological transformation and process optimization, product quality improvement, significant cost reduction and efficiency gains; fourth, the performance base of the same period last year is relatively low. The combination of the above factors led to a significant increase in the company’s current performance year-on-year.

Another company with a year-on-year increase in profit is Anoky, which posted a 5% year-on-year increase in net profit in the first quarter. Ji Lijun, chairman of Anoky, said that the company has always been committed to the research and development, production and sales of high-end differential dyes, while constantly strengthening cost control, and correspondingly increasing operating gross profit margin.

Many companies mentioned the company’s core competitiveness when talking about the business situation. People in the industry generally believe that after the pandemic, dye companies will accelerate the reshuffle. Whether they have their own core products and technologies not only determines the profitability of each company, but also the key to whether the company can further improve its strength.

In the face of the decrease in overseas market orders brought by the current pandemic, in order to enhance the international competitiveness of China’s dye industry and reverse the passive situation of international competition, the industry expects to resume the export tax rebate policy for dyes and intermediates, and recommends that relevant national departments grant dyes and intermediates full export tax rebate rate.