VINACHEM

In the first 6 months of 2022, Vinachem's production and business activities took place in the condition that Covid-19 epidemic was basically controlled, the domestic and the world economy are recovering, consumption demand is actively increasing again, agricultural and export agricultural product are increasing. However, Vinachem, like many other businesses, continues to face difficulties due to: the influence of world economic factors, the impact of policies, especially the impact from the conflict between Russia and Ukraine. From the second half of February 2022 until now, creating great pressure for oil prices to rise, pushing the world economy into inflation.

Along with the impact of oil price increase, the prices of most raw materials for production at Vinachem's units also increased, such as: Sulfur (raw material for production of sulfuric acid, super fertilizer, DAP fertilizer) up 85.3% from 286 USD/tonne to 540 USD/tonne; ammonia (raw material for DAP fertilizer production) up 36.8% from 866 USD/ton to 1,185 USD/ton; Industrial salt (production of caustic soda and HCl) up 43%, curtain fabric, black coal (raw material for rubber products) up 17% and 15% compared to the average price in 2021.

However, With the effort of whole Group, Vinachem has achieved positive results in the first 6 months of 2022 with specific targets: Public production value at current prices was estimated  31,800 billion VND, by 63% of the plan, up 34% compared to the same period in 2021.

In which: fertilizer and pesticide were estimated 19,435 billion VND, up 46%; Apatite was estimated 1,950 billion VND, up 38%; rubber was estimated 5,204 billion VND, up 14%; electrochemical (battery, accumulator) was estimated 1,923 billion VND, up 14%; basic chemicals and industrial gases were estimated 1,790 billion VND, up 47%; detergent is estimated 1,384 billion VND equal to the same period in 2021.

Revenue was estimated 32,830 billion VND, by 63% of the plan, up 26% compared to the same period in 2021. In which: Fertilizer and Pesticide were estimated 19,769 billion VND, up 33%; Apatite products were estimated 2,211 billion VND, up 29%; Rubber was estimated 5,316 billion VND, up 10%; Electrochemical (battery, accumulator) was estimated 2,161 billion VND, up 7%; Basic chemicals and Industrial gases were estimated 1,863 billion VND, up 53%; Detergent was estimated at 1,384 billion VND equal to the same period in 2021.

Gross profit of Group was estimated VND 4,098 billion VND. In which, the profit of the unit members of  1468 Project were estimated 2,114 billion VND, increasing 3,128 billion VND compared to the same period in 2021; Profit of the rest of unit member were estimated 1,984 billion VND, up 848 billion VND, up  75% compared to the same period in 2021.

Some unit members have high profits such as: VINAAPACO up 410%, SFC up 297%, DAP-Vinachem up 233%, VITRICHEM up 207%, SOVIGAZ up 149%, NIFERCO up 89% compared to the same period in 2021. Payment to the State Budget in the first 6 months of the year was estimated 1,185 billion VND, by 72% the plan of 2022.

In the first 6 months, the Group always ensured enough employment for nearly 20,000 employees with an average income was 12.02 million VND/person/month. Besides, the total import-export turnover was estimated 397.7 million USD, up 9% compared to the same period; The export value was estimated 217.7 million USD, by 100% of the same period; The import value were estimated 180 million USD, by 123% to the same period in 2021.

In the  6 months, Al kinds of Fertilizers was 1.6 million tonnes; 1.9 million car tires; more than 2.7 million motorcycle tires; 131 thousand tonnes of detergents and many chemical products for production demand and social life. Some products increased compared to the same period: Caustic soda up 10%, HCl up 12%, automobile tires up 12%, various types of batteries up 12%, accumulator up 7%, oxygen up 15%, yellow phosphorus  up 11%, Javen Sodium hypochlorite  up 18%. Some products that down compared to the same period were: DAP down 31%, NPK down 23%, phosphoric acid down 25%, liquid chlorine down 16%, NH₃ down 26%.

For Construction investment, the Execution Value in the first 6 months of 2022 reached 138 billion VND, by 27.8% of the construction investment plan.

Activities of joint venture and associate company in the past 6 months also achieved higher results compared to the same period last year. Revenue of 2 joint venture company were estimated 4,425 billion VND, up 2% compared to the same period; (1)Inoue Rubber Vietnam Co., Ltd. in the first 6 months Profit after tax was estimated 95 billion VND, by 70% of the same period in 2021; (2)TPC Vina Co., Ltd. Profit after tax was estimated 177 billion VND, by 64% of the same period in 2021.

Some Associate company have result: (1)NETCO with Revenue Q2 reached 398 billion VND, Accumulated in the first 6 months reached 750 billion VND; Profit Q2 reached 20 billion VND, Accumulated in the first 6 months reached 45 billion VND; (2) SRC with Revenue Q2 reached 231 billion VND, Accumulated in the first 6 months reached 485 billion VND; Profit Q2 reached 15 billion VND, Accumulated in 6 months reached 34 billion VND; (3) SOUTHCHIMEX with Revenue Q2 reached 146 billion VND, Accumulated in the first 6 months reached 336 billion VND; Profit Q2 reached 0.6 billion VND, Accumulated in the first 6 months reached 1.1 billion VND.