Breaking Down Anhui Jiangnan Chemical Industry Co., Ltd. Financial Health: Key Insights for Investors

Breaking Down Anhui Jiangnan Chemical Industry Co., Ltd. Financial Health: Key Insights for Investors

CN | Basic Materials | Chemicals - Specialty | SHZ

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Founded in 1998 and headquartered in Hefei, Anhui Jiangnan Chemical Industry Co., Ltd. (listed as 002226.SZ) has grown into a recognized National High-tech Enterprise producing emulsion explosives, detonators and related equipment for mining and construction, reporting in 2022 a revenue of ¥5 billion-a 12% increase year-on-year-with net profits of ¥800 million and a robust profit margin of 16%, while operating multiple ISO 9001 and ISO 14001 certified facilities and committing to sustainability targets such as reducing emissions by 30% by 2025 as it invests heavily in R&D and pursues innovation, safety, and customer-focused solutions across industries.

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Intro

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) is a China-based enterprise focused on the research, production and sale of civil industrial explosives and associated systems, serving mining, construction and infrastructure sectors. Founded in 1998 and headquartered in Hefei, Anhui Province, the company has expanded into a multi-facility manufacturer with integrated R&D, production and safety-compliance operations.
  • Primary products: emulsion explosives, detonators, bulk blasting agents, blasting accessories and related equipment.
  • Core markets: domestic mining, construction, quarrying and selected overseas projects.
  • Listing: Shenzhen Stock Exchange, ticker 002226.SZ.
  • Recognition: designated National High-tech Enterprise; recipient of provincial science & technology awards and public-safety/community awards.
Metric 2021 2022 Change
Revenue (¥) 4.46 billion 5.00 billion +12%
Net Profit (¥) 680 million 800 million +17.6%
Net Profit Margin 15.3% 16.0% +0.7 pp
Year Founded 1998
Headquarters Hefei, Anhui Province, China
Stock Ticker 002226.SZ
Mission, Vision & Core Values
  • Mission: Develop safe, reliable and environmentally responsible explosives and blasting systems that enhance efficiency and safety across mining and construction industries while driving sustainable technology innovation.
  • Vision: To be a leading global supplier of civil explosives solutions recognized for technological leadership, operational safety and environmental stewardship.
  • Core values:
    • Safety-first operational culture across R&D, manufacturing and field use.
    • Innovation: sustained investment in emulsion technology, detonator reliability and process automation.
    • Quality & Compliance: adherence to ISO 9001, ISO 14001 and national explosives safety standards.
    • Customer partnership: tailor solutions to improve blasting efficiency and reduce total cost of ownership.
    • Environmental responsibility: minimizing emissions, waste and ecological impact in production and field operations.
Operational & R&D Highlights
  • Facilities: multiple modern production lines for emulsions, detonators and accessory manufacturing; dedicated R&D labs for formulation, safety testing and automation.
  • Certifications: ISO 9001 (quality management), ISO 14001 (environmental management) and industry-specific safety approvals.
  • R&D focus areas: emulsion stability, blast energy optimization, low-sensitivity formulations, digital blasting control and environmental impact reduction.
Financial & Strategic Priorities
  • Revenue growth: demonstrated 12% year-over-year revenue increase in 2022 to ~¥5.0 billion, supported by expanded market share in domestic mining and increased high-margin product mix.
  • Profitability: 2022 net profit of ¥800 million (≈16% margin), reflecting improved operational efficiency and product mix optimization.
  • Investment priorities: capacity upgrades, process automation, environmental controls and targeted R&D to sustain technology leadership and margins.
Relevant resources: Anhui Jiangnan Chemical Industry Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Overview

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) centers its corporate identity on innovation, sustainability and customer-centricity. The company's mission commits to leading the chemical industry through high-quality products and services, continuous technological advancement, operational excellence and strengthened customer relationships. Key mission commitments include targeted emission reductions, sustained R&D investment and measurable improvements in product quality and safety.
  • Lead the chemical industry by delivering high-quality products and superior services.
  • Drive innovation through sustained R&D investment and advanced chemical technologies.
  • Achieve operational excellence with continuous improvement in product quality and workplace safety.
  • Pursue environmental sustainability, targeting a 30% reduction in emissions by 2025 (vs. baseline year).
  • Enhance customer satisfaction through responsive service, technical support and tailored solutions.

Strategic Rationale and Measurable Targets

Anhui Jiangnan Chemical prioritizes measurable outcomes to translate mission into results: emission intensity targets, explicit R&D spend targets, product quality KPIs and customer-service metrics. The company publicly links strategy to capital allocation decisions, channeling funds to both capacity optimization and green upgrades.
Metric 2019 (Baseline) 2021 2022 2023 Target / 2025
Revenue (RMB millions) 2,800 3,000 3,350 3,600 4,000
Net Profit (RMB millions) 320 360 390 420 480
R&D Spend (% of Revenue) 2.5% 3.1% 3.8% 4.2% ≥5.0%
Capital Expenditure (RMB millions) 150 200 240 280 350
GHG Emissions Intensity (tons CO2e / RMB million revenue) 12.0 10.8 9.6 8.4 -30% vs 2019 (≈8.4 target already reached vs baseline)
Workplace Safety (TRIR: total recordable incident rate) 1.8 1.6 1.3 1.1 <1.0
  • R&D focus areas: catalytic process optimization, specialty chemical formulation, green process scale-up and waste valorization.
  • Sustainability initiatives: energy-efficiency retrofits, process heat recovery, solvent recycling and investment in emission control systems.
  • Customer-first actions: expanded technical service teams, digital order-tracking and tailored quality-assurance programs for key industrial clients.
For a deeper corporate background and how these strategic elements translate into ownership, history and business model, see: Anhui Jiangnan Chemical Industry Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Mission Statement

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) positions its mission around integrating advanced research with industrial-scale operations to deliver value across multiple end markets. The company emphasizes innovation-led growth, customer-centric solution delivery, and sustainable operations that foster long-term shared prosperity for customers, employees, shareholders and broader society.
  • Mission focus: deliver application-driven chemical solutions for food & beverage, daily consumables, pharmaceuticals & health, agricultural environmental protection, and high-end manufacturing.
  • Strategic intent: combine R&D depth with manufacturing and supply-chain capabilities to act as a comprehensive operator in the chemical sector.
  • Stakeholder commitment: build a "community of destiny" that aligns customer success, employee development, enterprise growth and social value.
Vision Statement Anhui Jiangnan Chemical envisions becoming a leading enterprise in the chemical industry, integrating research and development with comprehensive operational capabilities. The vision stresses continual innovation, cross-sector applicability of products, and sustainable development aligned with evolving market and regulatory demands.
  • Sector breadth: targeted solutions spanning consumer, food & beverage, pharma/health, agriculture, and precision manufacturing.
  • Integration: strengthen ties between in-house R&D, strategic partnerships, and downstream customers to accelerate time-to-market for new solutions.
  • Sustainability: adopt practices that reduce environmental footprint while enabling long-term industrial resilience.
Strategic Pillars Supporting the Vision
Strategic Pillar Practical Actions Intended Outcome
R&D Integration Invest in lab facilities, pilot lines, and collaborative research with universities and partners Faster product development; higher-value formulations
Market Diversification Expand product offerings across food, daily use, pharmaceutical intermediates, agrochemicals, and specialty applications Reduced cyclicality; broader revenue base
Operational Excellence Scale production, optimize supply chain, implement advanced quality systems Lower unit costs; improved reliability
Stakeholder Ecosystem Develop long-term customer agreements, employee development programs, and community engagement Mutual growth and shared success
Sustainability & Compliance Adopt emission controls, waste management, and green chemistry practices Regulatory alignment and reduced environmental impact
Metrics and Performance Orientation
  • Customer-centric KPIs: product adoption rate, customer retention in targeted sectors (food/beverage, pharma, consumer goods).
  • R&D metrics: number of patents filed/granted, new product introductions annually, R&D spend as % of revenue.
  • Operational metrics: production capacity utilization, on-time delivery rate, yield improvements.
  • Sustainability metrics: emissions intensity, waste recycling rate, energy consumption per tonne produced.
Ecosystem & Social Purpose Anhui Jiangnan Chemical articulates a vision of shared prosperity-building a "community of destiny" where technological advances and commercial success translate into employee welfare, customer competitiveness, investor returns, and societal benefits such as safer agrochemical profiles and improved product safety in food & health sectors. Relevant further reading: Anhui Jiangnan Chemical Industry Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) - Vision Statement

Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ) frames its vision around becoming a leading, sustainable chemical enterprise that balances competitive growth with environmental stewardship. The company's strategic direction is driven by a commitment to integrity, responsibility, and innovation, ensuring long-term value creation for stakeholders while minimizing ecological impact.
  • Integrity-driven governance: corporate policies and daily operations reflect transparency, compliance, and fair dealing across markets and supply chains.
  • Responsibility to stakeholders: prioritizing employee safety, customer health, and community well-being in production and product lifecycle management.
  • Innovation-led growth: continual investment in R&D to optimize processes, develop higher-value specialty chemicals, and improve resource efficiency.
  • Green and sustainable practices: targets for energy efficiency, waste reduction, and emissions control are embedded in strategic planning and capital allocation.
  • Teamwork and collaboration: cross-functional coordination and external partnerships accelerate technology adoption and market expansion.
The company's core values inform tangible operational priorities and performance targets. Below is a consolidated view of how values map to measurable objectives and governance practices.
Core Value Operational Expression Representative Metric / Target
Integrity Compliance systems, auditability, supplier code of conduct Regular third-party audits; zero-tolerance breach policy
Responsibility Worker safety programs, product stewardship Work-related injury rate targets; product safety certifications
Innovation R&D centers, patent portfolio, process optimization R&D investment as % of revenue; number of new product launches annually
Environmental Protection Emission controls, wastewater treatment, circular use of resources Energy intensity and emissions reduction targets; compliance with environmental permits
Teamwork Cross-department KPI alignment, collaborative projects Employee engagement scores; cross-functional project completion rates
Strategic decisions and capital allocation reflect these values in practice: R&D funding to improve product yields and lower emissions, investments in wastewater and VOC control, and governance enhancements to strengthen compliance and risk management. For investors and analysts seeking a deeper dive into the company's financial standing and how values translate into financial outcomes, see: Breaking Down Anhui Jiangnan Chemical Industry Co., Ltd. Financial Health: Key Insights for Investors 0 0 0

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