Analysis of first half financial reports of Chinese carbon black companies

　　In August 2023, several chemical companies released their financial reports for the first half of the year, providing insights into their performance amidst shifts in the economic landscape.

　　Jinneng Technology: Revenue Declines, Serious Losses

　　Jinneng Technology Co., Ltd. disclosed a report indicating that from January to June 2023, its operating income experienced a significant year-on-year decrease of 18.25%, amounting to 7.215 billion yuan. Most notably, the company reported a net loss of 61.0096 million yuan, a stark contrast to the 174 million yuan profit recorded in the same period last year. The core business areas of Jinneng Technology encompass fine chemicals, coal chemicals, and petrochemicals, with carbon black contributing 30.71% of the total revenue. During this reporting period, revenue from the carbon black business totaled 2.216 billion yuan, signifying a year-on-year decrease of 5.55%, and the gross profit margin plummeted to -0.96%.

　　Lonstar Chemical: Slight Revenue Dip, Decreased Profits

　　Lonstar Chemical Co., Ltd. also demonstrated shifts in its performance report for the first half of 2023. The company's operating income experienced a marginal 2% year-on-year decrease, totaling 2.156 billion yuan, while net profit saw a decrease of 4.08%, amounting to 56.6853 million yuan. Lonstar Chemical's principal operations revolve around carbon black, silica, power, and steam, with the carbon black business constituting 94.38% of the total revenue. In the same reporting period, the carbon black business generated revenue of 2.035 billion yuan, marking a year-on-year increase of 3.29%. However, the gross profit margin dropped to 7.06%.

　　Yongdong Chemical: Revenue Growth, Yet Losses

　　Shanxi Yongdong Chemical Co., Ltd.'s first half annual report indicated that the company achieved operating income of 2.192 billion yuan, showcasing a commendable year-on-year growth of 9.15%. However, the net profit showed a loss of 4.3319 million yuan, presenting a significant contrast to the profit in the same period of the previous year. Specializing in carbon black and tar processing products, revenue from the carbon black business constituted 64.63% of the total revenue. During this reporting period, the revenue from the carbon black business was 1.417 billion yuan, indicating a year-on-year increase of 3.60%, though the gross profit margin saw a decline to 2.80%.

　　Lianke Technology: Revenue Growth, Profit Decline

　　Shandong Lianke Technology Co., Ltd.'s semi-annual report revealed certain alterations in performance. The operating income showed growth, reaching 937 million yuan, marking a year-on-year increase of 11.14%. However, net profit witnessed a decrease of 9.17%. The company primarily engages in carbon black, silica, and sodium silicate, with revenue from the carbon black business accounting for 59.28% of the total revenue. During this reporting period, revenue from the carbon black business amounted to 556 million yuan, reflecting a year-on-year increase of 9.51%. Nevertheless, the gross profit margin decreased to 6.86%.

　　Otomo Canon: Revenue Growth, Profit Decline

　　Jiayuguan Dayou Jianeng Refined Carbon Technology Co., Ltd. also demonstrated certain shifts in its 2023 semi-annual report. The operating income increased by 9.8% year-on-year, reaching 204 million yuan. However, the net profit experienced a significant decline of 67.32%, and the gross profit margin stood at 6.78%, a year-on-year decrease of 4.24 percentage points. The company attributed these challenges to frequent fluctuations in upstream raw oil prices and persistently high costs, resulting in minimal profits from carbon black.

　　These financial reports serve as a mirror reflecting the obstacles faced by various companies in the intricate and ever-evolving market environment. They also spotlight their business strategies and performance strengths across diverse business sectors.