Huafon and Tayho New Materials announce performance projection for Q1 2021

Huafon Chemical announced annual results in 2020: in 2020, the company's revenue, net profit and net interest rate increased quarter by quarter, with a total operating income of 14.67 billion yuan (up 6.42% compared with the same period last year) and 2.278 billion yuan of net profit attributed to the parent company (up 23.71% compared with the same period last year). Basic earnings per share was at 0.49 Yuan per share (a year-on-year increase of 13.95%). In Q4 2020, the company achieved revenue of 4.728 billion yuan (a year-on-year decrease of 54.99%) and 1.037 billion Yuan of net profit attributed to the parent company (A year-on-year reduction of 30.15%), in line with expectations.

At the same time, the company announced the "Results forecast for the first quarter of 2021": in the first quarter of 2021, the company is expected to achieve 1.450-1.65 billion Yuan of net profit (up 431.94%-505.32% compared with the same period last year). On the basis of repeatedly exceeding expectations of performance in Q3-Q4, 2020, Huafon is expected to create a new single-quarter profit record again in Q1 2021 and exceed expectations.

Yantai Tayho New Materials Co., Ltd. (hereinafter referred to as "Tayho New Materials"), a leading company of spandex and aramid within China, recently disclosed a forecast of results for the first quarter of 2021. It is estimated that during the reporting period, the net profit attributed to the parent company is about 130-190 million Yuan, a sharp increase of 148.57%-263.30% compared with the same period last year.

As for the reasons for the performance changes, Tayho New Materials explained that during the reporting period, there was a strong downstream for spandex, and the price of spandex gradually rebounded due to the rising prices of raw materials and tolerable demand. At the same time, sales volume also increased to a certain extent, and the profitability of spandex business increased apparently in the first quarter. Meanwhile, affected by the release of aramid capacity and the effective connection of production and marketing, the company's production and sales of aramid products climbed up significantly, and the profits realized by the aramid business improved significantly compared with the same period last year.