Household Cleaning Products OEM Zanyu Tech Reported $10 Million Net Loss
- Chaileedo Press
- Apr 26, 2023
- 2 min read
Zanyu Tech, the surfactants and oleochemicals manufacturer and household cleaning products OEM, reported 69.87 million yuan ($10.09 Million) net loss in 2022.
Zanyu Technology Group Co., Ltd (Zanyu Tech), the surfactants and oleochemicals manufacturer and household cleaning products OEM released its 2022 annual report on 26th Apr. The company delivered operating revenue 11.24 billion yuan ($ 1.62 billion), with an increase of 0.3%. While the company reported 69.87 million yuan ($10.09 Million) net loss in 2022.
Zanyu Tech said the reason for its losses is due to the extreme situation of a sharp drop in raw material prices, which caused a simultaneous drop in product prices and a significant decrease in the gross profit margin of its core business, resulting in a negative impact on profits.
According to its financial report, Zanyu Tech is a high-tech enterprise specializing in the research and development, production, and OEM/ODM business of surfactants, oleochemicals, and washing and care products. The company is headquartered in Hangzhou and has industrial production bases in Hangzhou and Jiaxing, Jiangsu and Jakarta, Indonesia. The annual production capacity of surfactants has exceeded 1.1 million tons, and that of oleochemicals has exceeded 1 million tons.
During the reporting period, the surfactants and oleochemicals business accounted for more than 96% of the company's main business revenue and was the main component of the company's main business.
In terms of business segments, in 2022, the revenue of Zanyu Tech's surfactants business segment reached 3.51 billion yuan ($ 507.7 million), an increase of 13.4% compared to the same period last year, with a sales gross profit margin of 4.33%, a decrease of 10.08 percentage points from the same period last year. The company sold 473,700 tons of surfactants in 2022, an increase of 10.5% compared to 2021.
In the oleochemicals business segment, Zanyu Tech 's revenue increased by 1.04% to 7.36 billion yuan ($ 1.06 billion) with a sales gross profit margin of 5.79%, a decrease of 8.61 percentage points from the same period last year. The company sold 836,900 tons of oleochemicals in 2022, an increase of 6.45% compared to 2021.
Zanyu Technology stated that in 2023, the company will focus on its main business, especially in expanding its OEM/ODM business in the washing and care industry and developing refined products such as OPO. It will also strengthen inventory position management, more accurately controlling the level of inventory based on predictions of raw material price trends and the company's business situation.
The company will enhance its raw material procurement management by taking advantage of differences in the timing and magnitude of price fluctuations between domestic and foreign markets to make timely and optimal purchases. The company will also use moderate hedging to reduce the risks of fluctuations in raw material prices and minimize the impact of such fluctuations on product profitability by employing downstream customer processing models and upstream long-term supply agreements.
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