Hubei Yihua's 30,000-ton anhydrous hydrogen fluoride phase I plant has been put into operation

The company stated that the project, relying on its own raw materials and manufacturing foundation, processes the fluorosilicic acid by-product from the phosphorous chemical sector into high value-added anhydrous hydrogen fluoride. With cutting-edge methodology and strong product profitability, it practices circular economy, optimizes the structure of phosphorus and fluorine items, helps the phosphorus and fluorine sector extend and supplement the chain towards new energy and new materials, improves condition and efficiency, and enhances the company's market competitiveness and risk resistance. The second phase of the project will be launched at an appropriate time based on market demand and corporate strategy.

Project Approval Background and Process Plan

In order to implement the standards of "Yangtze River Great Protection", promote the transformation of the phosphorus and fluorine chemical sector and realize the stepped utilization of phosphorus and fluorine resources, Hubei Yihua announced on October 29, 2024 that Yihua Fluorochemical as the implementation entity will construct the wet-process phosphoric acid supporting 2×30,000 tons/year anhydrous hydrogen fluoride project in two phases.

The project uses fluorosilicic acid by-produced from wet-process phosphoric acid as raw material, adopts the fluorosilicic acid levels decomposition method, and has two sets of devices with an annual output of 30,000 tons of anhydrous hydrogen fluoride and supporting related facilities. It has obvious raw material cost advantages and good market space. According to feasibility study data, the post-income tax financial internal rate of return of the project is 27.49%, and the post-income tax investment payback period is 5.12 years.

Risk Warning: Uncertainties exist in benefits and the progress of the second phase

Hubei Yihua reminded in the latest announcement that the company will dynamically adjust the production load based on market supply and demand. Affected by fluctuations in raw material and product prices, the actual economic benefits of this project are uncertain. The start time and implementation arrangement of the second phase of the project have not yet been determined. The company will conduct prudent research and judgment based on the sector and market, and prompt disclose relevant developments in accordance with regulations in the future, reminding investors to invest rationally.

Company Profile and H1 Performance

general information shows that Hubei Yihua was listed on the Shenzhen Stock Exchange in August 1996. It is the first listed nitrogen fertilizer enterprise in China, known as the "China's No.1 Nitrogen Fertilizer Stock", and is a leading domestic fertilizer company.

In terms of performance, the company saw revenue development without corresponding profit development in the first half of this year: it achieved operating revenue of 13.392 billion yuan, a year-on-year increase of 11.56%; the net profit attributable to shareholders was 319 million yuan, a year-on-year decrease of 19.94%; the non-net profit was 236 million yuan, a year-on-year decrease of 25.08%.