Summary: Hubei Xingfa's Q3 2023 report showed that the company's revenues and net profits declined YoY in Q1–Q3 2023 but went up in Q3 2023.

On 28 Oct., 2023, Hubei Xingfa Chemicals Group Co., Ltd. (Hubei Xingfa) revealed its performance for Q3 2023. In Jan.–Sept. 2023, Hubei Xingfa achieved revenues of USD3.05 billion (RMB21.93 billion), down by 11.78% YoY; net profits attributed to shareholders of the listed company plunged by 80.98% YoY to USD130.12 million (RMB933.83 million). Specifically, in Q3 2023, Hubei Xingfa's revenues grew by 10.07% YoY to USD1.16 billion (RMB8.32 billion); net profits attributed to shareholders of the listed company declined by 74.21% YoY to USD45.28 million (RMB325.25 million).

Hubei Xingfa stated that net profits attributed to shareholders dropped dramatically YoY mainly because market prices of the company's cyclical products such as glyphosate, organosilicon, yellow phosphorus and phosphate fertiliser plummeted under the influence of the macro economy and market supply-demand changes in Q1–Q3 2023; production and sales also slipped to different degrees, leading product earning capacity to decreased. Meanwhile, it said that revenues went up in Q3 for the market of glyphosate, yellow phosphorus and phosphate fertiliser recovered, enhancing product capacity, and thus performance in Q3 improved significantly compared with Q2.

Additionally, Hubei Xingfa announced on the same day that it intended to delay the construction of the "400,000 t/a organosilicon production equipment" of the Inner Mongolia Xingfa organosilicon new material integrated circulation project considering the imbalance between the supply and demand of organosilicon products as prices continuously went down. Therefore, the company planned to use the remaining raised capital of USD53.36 million (RMB382.56 million) of this project for the 2.00 million t/a Houping phosphorus ore beneficiation and pipe transportation project, which will improve the company's capital utilisation efficiency and increase the usage proportion of self-produced phosphorus ore with low magnesium content.