According to Zhitong Financial App News, Xinan Co., Ltd. (600596.SH) released the 2023 semi-annual report. The company's operating income was 8.476 billion yuan, down 36.48% year on year; net profit attributable to shareholders of listed companies was 114 million yuan, down 95.13% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 458.9982 million yuan, down 98.02% year on year; basic earnings per share were 0.0992 yuan/share.

During the reporting period, in response to the challenges of sharp fluctuations in the industry, the company promptly researched changes in the situation, opened up resources and savings, made every effort to stabilize the basic business market, coordinate the supply chain with the principle of value maximization, and ensure maximum value in each business sector through rational organization of production, strategic production limits, and accurate accounting. The crop protection industry seizes profit periods, adjusts volume and price strategies in a timely manner, leverages the advantages of global channels, keeps an eye on customers, grabs high-priced orders and reduces inventory. The African region stabilizes the overall price center of the market, seizes time differences in market fluctuations, and further increases sales volume over the previous year. In the first half of the year, due to the large year-on-year decline in the sales prices of major products in the crop protection sector, the business sector achieved revenue of 3,714 billion yuan, a year-on-year decrease of 48.06%, and sales of 41,800 tons of glyphosate equivalent drugs. The silicon-based industry focuses on different links and fields in the industrial chain, and flexibly promotes loss reduction and profit growth. The silicone basic business strategically limited production and losses, and actively maintained core customers and strategic customers. In the first half of the year, silicon-based materials basic products achieved revenue of 1,087 billion yuan. Since product prices and sales volume both declined to varying degrees year-on-year, revenue declined significantly year-on-year. At present, base-end products account for a relatively large share of the company's overall product structure. Although the impact of base-side cyclical fluctuations cannot be completely eliminated, the profits of base-end products throughout the industry are generally poor, and even losses and complete shutdown in the same industry, the company's silicone terminalization shows a corresponding value contribution. The company's silicone terminal business achieved revenue of 1,185 billion yuan in the first half of the year. Elastomers actively promoted new products in the fields of new energy, 3C, packaging, etc., achieved technological breakthroughs, achieved import substitution, and successfully broke through leading downstream customers in the industry, with a gross profit margin of more than 30%; construction rubber further strengthened cooperation with leading brands and won China's green building materials product certification; modified silicone oil achieved 11 new product development. Under a slight drop in sales volume, operating profit increased by 2 percentage points. Industrial adhesives completed factory audits for 14 key customers, laying the foundation for incremental growth in the second half of the year.

During the reporting period, the company focused on reducing production costs and vigorously promoting cost reduction and efficiency. In the first half of the year, the company reduced the total cost of raw fuel by 42.91 million yuan; proposed the “Inspection and Maintenance Improvement Promotion Plan”, which reduced the number of external work orders by 4.88 million yuan; continued to carry out auctions for hazardous solid waste disposal, and reduced safety costs by 6.08 million yuan; created a winter atmosphere, controllable management expenses and sales expenses were reduced by 6.25 million yuan.