Latest News: On the evening of August 15, Kingfa Technology released its 2022 semi-annual report, achieving an operating income of 19.467 billion yuan, a year-on-year increase of 0.93%; the net profit attributable to shareholders of the listed company was 802 million yuan, a year-on-year increase of 0.93%. A drop of 49.26%.

Among them, the completely biodegradable plastics are as follows:

The sales volume of products was 49,400 tons, a year-on-year increase of 12.09%.

Industry Overview: 2022
In the first half of the year, the state continued to promote the policy of “banning and restricting plastics”. With the continuous improvement of the top-level design of plastic pollution control, the domestic degradable plastics industry is gradually improving. However, due to factors such as geopolitics, fluctuations in the price of upstream chemical monomer raw materials, and the spread of domestic epidemics, the demand for degradable plastics has slowed down significantly compared with the same period last year. In addition, the new production capacity in the industry is gradually put into production, and disorderly competition has led to a decline in the profits of degradable plastic products.

Business conditions:

①Expand upstream resources to ensure the supply of raw materials

In response to the rapidly changing market demand, the company has established long-term strategic partnerships with major upstream suppliers to stabilize the prices of major raw materials and ensure the company’s supply of raw materials.

②Cost reduction and efficiency increase

The company has carried out technical transformation on the synthesis device, reducing the manufacturing cost and improving the production efficiency.

③Improve differentiated competitiveness

The company continues to optimize product performance, upgrade and iterate new products, improve the shelf life of film bags, straw food contact safety and other technologies, and maintain its leading edge in the industry.

④Construct forward-looking research and promote the extension of the industrial chain

The company established Liaoning Kingfa Biomaterials Co., Ltd., actively deployed bio-based monomers and bio-based materials technology research, and steadily promoted the annual output of 10,000 tons of bio-based BDO
Project construction. In addition, due to factors such as epidemic prevention and control and changes in market demand, the company’s annual production capacity of 30,000 tons of PLA will be delayed until the fourth quarter of 2022.