Huayi Group's first-half net profit fell 117.7%, and revenue from coatings and resins increased 4.19% year-on-year

On the evening of August 24, Shanghai Huayi Group Co., Ltd. released its semi-annual report, which showed that:
"In the first half of the year, the company achieved operating income of RMB12,846 million, down 38.44% YoY
; 17.70%; the total assets of the company at the end of the
reporting period were 46.003 billion yuan, down 5.56% from the end of the previous year; and
the net assets attributable to shareholders of listed companies were 18.038 billion yuan, down 1.72% from the end of the previous year.
financial results show that Huayi Group's fine chemicals business achieved operating income of 2.813 billion yuan in the first half of the year, up 25.75 percent year-on-year, of which: coatings and resins revenue of 418 million yuan, up 4.19 percent year-on-year.
understand that the decline in revenue in the first half of 2020 is mainly due to the company's initiative to adjust the main industry less correlated business and the impact of the epidemic caused by

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1, business situation discussion and analysis
report shows that the first half of China's chemical industry price index showed a downward trend, the industry benefits declined significantly. Facing the major challenges of macro-environment, the company actively do a good job in epidemic prevention and control, strengthen lean operations, optimize supply chain management, enhance core competitiveness, at the same time, actively explore business transformation and upgrading opportunities, not only during the outbreak will be produced with a number of medical teams sent to Hubei anti-epidemic first line, but also quickly developed alcohol wash-free spray, wash-free gel, seasonal ammonium salt disinfection wipes and other products on the market.
the first half of 2020, in the face of severe and complex epidemic prevention and control situation and economic downstream pressure, Huayi Group cadres and staff around the "building a world-class enterprise with international competitiveness and influence" goal, solidly promote the key work. The company timely preparation, update the new coronavirus epidemic prevention and control contingency plan and work guide, in March all the company's production-oriented enterprises to resume work, while fulfilling corporate social responsibility, organize hand sanitizer, soap, disinfectant and other products production, timely meet market demand. Major project construction was also fully resumed in March, and huayi Qinzhou chemical new material integration base accelerated construction.
the first half of this year Huayi Group completed the first three-year term system of assessment unit soap, hui force company's assessment cash, and signed a new three-year term target. Complete the selection of the general manager and deputy general manager of the soap company. Launched the Group's "14th Five-Year Plan" to complete the digital Huayi strategic research. At the same time, the 2020 work programme for preventing and resolving major risks will be formulated, the working mechanism will be improved, and major risks in seven major areas, such as investment, capital, main business and finance, will be identified. Strengthen the use of audit results and promote the rectification of audit problems. To formulate the Measures for the Administration of Overseas Enterprises to promote the compliance and operation of enterprises. To carry out the work of intellectual property standards, the development of the company's "enterprise intellectual property management norms."
2, the second half of the possible risk
the outbreak of uncertain risk. As countries around the world slowly recover from the outbreak, the global economy is showing signs of improvement, especially in the major economies represented by China, but it is important to be alert to the impact of the second wave of outbreak peaks that may come, especially as the outbreak in some countries has been slow to improve, and global economic growth still faces greater uncertainty.
risk of global trade policy uncertainty. In the absence of global economic growth momentum and depressed manufacturing climate, trade disputes between the major economies may undermine the global trade ecology, threaten the international trade order, exacerbate down-risks to the economy, and bring great uncertainty to global economic growth.
In the face of these risks, the company will strengthen the tracking and analysis of the national macro-environment and industrial policies, study the impact of the national "six stable" "six insurance" work, expand domestic demand, supply-side reform and other policies on the industry;
Huayi Group is a large state-controlled listed company, mainly engaged in energy and chemical industry, green tires, advanced materials, fine chemicals and chemical services five core business, and has basically formed a "manufacturing and service" dual-core-driven business development model, as well as covering "basic chemicals, fine chemicals and advanced materials, end-customer-oriented products" of the upstream and downstream industrial chain integrated development system.
Huayi Group is one of the few companies in China's domestic chemical industry to cooperate with the world's leading chemical companies and set up joint ventures, and has become one of the preferred partners for the world's leading chemical companies to enter the Chinese market. At present, with BASF, Akoma, Linde, Cabot and other multinational companies set up a number of Sino-foreign joint ventures, at the same time with Baowu, Sinopec, Scully, CHINA Group and other well-known domestic enterprises to establish a good business relations of cooperation.
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