Net profit in 2021 is expected to increase by 435% to 552%!

On January 6, 2022, Dongfang Shenghong disclosed the 2021 annual performance forecast.
The company expects that the net profit attributable to shareholders of listed companies in 2021 will be 4.
1 billion to 5 billion yuan, an increase of 435% to 552.
44% compared with the same period of the previous year after retrospective adjustment.

.
Basic earnings per share range from 0.
85 yuan per share to 1.
03 yuan per share
.

Regarding the reasons for the changes in performance, Dongfang Shenghong said that during the reporting period, the demand in the chemical industry recovered, combined with the impact of rising crude oil prices, the industry entered a recovery cycle and the prosperity increased
.
The company's production and operation were further improved and maintained a good profitability
.
The production capacity of EVA photovoltaic resin produced by Jiangsu Sierbang Petrochemical Co.
, Ltd.
("Serbon") is stable at more than 200,000 tons per year, the annual output of Ganghong Fiber is 200,000 tons of differentiated functional chemical fiber projects, and the annual output of Zhonglu Technology The 60,000-ton PET regenerated fiber project was completed and put into operation in the second half of 2020, increasing its profit contribution year-on-year
.

According to the relevant provisions of the "Accounting Standards for Business Enterprises", the current net profit and loss from the beginning of the period to the merger date of subsidiaries arising from business mergers under the same control are non-recurring gains and losses
.
Due to the merger of Sierbang under the same control, the company expects to increase the non-recurring profit and loss attributable to shareholders of the listed company by 2.
7 billion yuan to 3.
4 billion yuan during the reporting period
.

As we all know, Shenghong Holding Group Co.
, Ltd.
was established in 1992 and is headquartered in Shengze, Suzhou
.
Create a new high-end textile industry chain from printing and dyeing, chemical fiber to petrochemical, refining and chemical, and grow into an innovative high-tech industrial group with petrochemical, textile and energy as its main industries
.
In 2019, Shenghong Group ranked 132nd among "Top 500 Chinese Enterprises" and 29th among "Top 500 Chinese Private Enterprises"
.
As the only listed company platform of Shenghong Group, Dongfang Shenghong backdoored the Oriental Market in June 2018, reorganized the meeting, and purchased 100% equity of Guowang Hi-Tech from Shenghong Technology and China Development Fund through non-public issuance of shares.
The transaction consideration was 12.
733 billion yuan
.
After the transaction was completed in August 2018, Guowang Hi-Tech became a wholly-owned subsidiary of the listed company, and Shenghong Technology directly held 68.
71% of the shares in the Oriental Market and became the new controlling shareholder
.
On September 27, 2018, the company's securities abbreviation was changed to "Oriental Shenghong"
.

The main business of Dongfang Shenghong is the research and development, production and sales of civilian polyester filaments.
The wholly-owned subsidiary Guowang Hi-Tech and its important subsidiaries Shenghong Fiber, Zhonglu Technology and Ganghong Fiber are responsible for the operation and management
.
The civilian polyester filament produced by the company is mainly used in downstream fields such as clothing, home textiles and industrial textiles.
Since its establishment, it has been deeply cultivating the civilian polyester filament market.
The good service has been widely recognized by customers, and the scale of civilian polyester filament has been in the forefront of the industry
.

In recent years, Dongfang Shenghong has continuously summed up and improved its management experience.
At present, it has formed a set of effective management models that conform to its own characteristics.
Through the construction of ERP information management system, the centralized management of finance, procurement, sales and planning has been realized.

.
At the same time, Dongfang Shenghong attaches great importance to the introduction and training of professional talents.
Through the dual mechanism of internal training and external introduction, it has accumulated and trained many talents with rich industry experience in enterprise management, financial management, technology research and development, production and manufacturing, etc.
A mature, stable, professional and experienced business management team
.
In recent years, the management team has established and improved various business management processes based on the needs of business development, effectively improving the company's management and decision-making level
.

It is worth noting that after Dongfang Shenghong plans to acquire Sierbon for 14.
36 billion yuan, Jiangsu Shenghong Petrochemical Industry Development Co.
, Ltd.
, a wholly-owned subsidiary of the company, plans to acquire Jiangsu Yuquan Shenghong Refining and Chemical Debt-to-Equity at a consideration of 3.
509 billion yuan.
13.
2861% equity of Shenghong Refinery (Lianyungang) Co.
, Ltd.
(hereinafter referred to as "Shenghong Refinery") held by the Investment Fund (Limited Partnership)
.
It can also be seen that Dongfang Shenghong provides raw material guarantee for the subsequent "extended chain" development of new energy, new materials, electronic chemistry, biotechnology and other strategic emerging industries, and lays the groundwork for the company's long-term development
.