On March 25th, 2023, China’s fine chemical company Guangzhou Tinci Materials Technology Co., Ltd (TINCI) released its full-year performance report for the year 2023. The company achieved a total revenue of 15.405 billion yuan, a year-on-year decrease of 30.97%. The net profit attributable to the parent company was 1.891 billion yuan, down 66.92% year-on-year. The net cash flow generated from operating activities was 2.274 billion yuan, down 45.38% year-on-year, with an asset-liability ratio of 43.36%, down 6.35 percentage points year-on-year.
The company’s sales gross profit margin was 25.92%, down 12.05 percentage points year-on-year. It achieved a basic earnings per share of 0.99 yuan, down 66.89% year-on-year, and a diluted return on net assets of 14.16%, down 31.39 percentage points year-on-year.
The company’s main businesses include lithium-ion battery materials, daily chemical materials, and specialty chemicals, with proportions of 89.23%, 9.13%, and 1.65%, respectively, achieving revenues of 14.104 billion yuan, 1.017 billion yuan, and 0.283 billion yuan, with gross profit margins of 25.26%, 35.84%, and 23.18%, respectively.
Among them, the downstream products of the daily chemical materials produced by the company are used for personal care products, including shampoos, conditioners, shower gels, hand wash liquids, disinfectants, skincare products, etc. At the same time, daily chemical materials are also widely used in the cleaning and care of daily household and clothing.
Previously, Zhu Chaonan, the R&D and application director of TINCI’ daily chemical division, stated in an interview with Green Eye: “As a raw material company, Tianci Materials has found that our customers also tend to use Chinese characteristic plant extracts in their formulations and require the entire formulation to be green. In this case, sometimes there may be mismatches between the existing formulation system and the actual needs (such as AES-containing shampoo systems cannot meet the customer’s demand for green, mild, and botanical shampoos). At this time, it is necessary for local companies that also understand Chinese ingredients to assist.”
