\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 309 Wanhua Chemical Group Co.Ltd(600309) )
Event: on March 14, 2022, Wanhua Chemical Group Co.Ltd(600309) released the annual report of 2021: the operating revenue reached 145538 billion yuan, a year-on-year increase of + 98.19%; The net profit attributable to the shareholders of the listed company was 24.649 billion yuan, a year-on-year increase of + 145.47%; The weighted average return on net assets was 42.53%, an increase of 20.33 percentage points year-on-year. The gross profit margin of sales was 26.26%, a year-on-year decrease of 0.52 percentage points; The net profit margin of sales was 17.20%, with a year-on-year increase of 3.02 percentage points.
Among them, Q4 achieved a revenue of 38.219 billion yuan in 2021, a year-on-year increase of + 57.92% and a month on month increase of – 3.64%; The net profit attributable to the parent company was RMB 5.107 billion, with a year-on-year increase of + 8.84% and a month on month increase of – 15.04%; The weighted average return on net assets was 7.71%, a year-on-year decrease of 2.41 percentage points and a month on month decrease of 2.16 percentage points. The gross profit margin of sales was 17.09%, a year-on-year decrease of 18.25 percentage points and a month on month decrease of 9.81 percentage points; The net sales interest rate was 13.49%, a year-on-year decrease of 6.32 percentage points and a month on month decrease of 1.90 percentage points.
Comments:
The volume and price of main products have risen simultaneously, helping the company’s performance to a new height
Benefiting from the effective control of the epidemic, China’s market demand and downstream overseas exports continued to grow; At the same time, the goal of carbon neutralization also promotes the supply side reform of the chemical industry, and the prosperity of the industry continues to improve; In addition, the company’s MDI technical transformation, ethylene and other new production capacity and new devices were put into operation, and the volume and price of the company’s main products rose simultaneously, which also helped the company achieve significant growth in 2021. Among them, the company achieved an annual operating revenue of 145538 billion yuan, a year-on-year increase of 98.19%; The net profit attributable to the parent company was 24.649 billion yuan, a year-on-year increase of 145.47%.
In terms of business segments, the annual revenue of polyurethane business was 60.492 billion yuan, an increase of 72.75% at the same time; The sales volume reached 3.89 million tons, an increase of 34.86% at the same time; The average annual price reached 155507 yuan / ton, an increase of 18.36% at the same time; The gross profit margin reached 35.07%, an increase of 0.61 percentage points. The petrochemical business realized a revenue of 61.409 billion yuan, an increase of 132.46% at the same time; The sales volume reached 10.04 million tons, an increase of 59.80% at the same time; The average annual price reached 6116.5 yuan / ton, an increase of 66.47% at the same time; The gross profit margin reached 17.09%, an increase of 9.45 percentage points. The business of fine chemicals and new materials achieved a revenue of 15.464 billion yuan, an increase of 94.18% at the same time; The sales volume reached 760000 tons, an increase of 36.95% at the same time; The average annual price reached 203471 yuan / ton, an increase of 42.07% at the same time; The gross profit margin reached 21.25%, an increase of 2.31 percentage points, and the volume and price of the three business segments achieved a great breakthrough. Meanwhile, in 2021, the net cash flow generated from the company’s operating activities reached 27.922 billion yuan, with a year-on-year increase of 65.71%. The strong cash flow will not only show the company’s strong liquidity, but also inject strong impetus into the company’s future development.
The improvement of production capacity contributes to the performance, and the leading position of polyurethane continues to be consolidated
In 2021, the products and solutions of polyurethane business sector were driven by two lines and worked closely together to maintain the momentum of rapid growth. Focus on “expanding market resources, broadening overseas borders, expanding synergy, deepening channel reform and improving long-term interests”. In 2021, the polyurethane business achieved a revenue of 60.492 billion yuan, a year-on-year increase of + 72.75%, and the sales volume reached 3.89 million tons, a year-on-year increase of + 34.86%; Among them, 2021q4 achieved a revenue of 16.397 billion yuan (year-on-year + 30.18%, month on month + 4.59%) and a sales volume of 983900 tons (year-on-year + 11.67%, month on month – 2.69%).
In 2021, the performance of polyurethane business achieved a big breakthrough. On the one hand, it benefited from the launch of new production capacity. Among them, the technical transformation of Yantai MDI unit was completed in February, and the production capacity was expanded from Shanghai Pudong Development Bank Co.Ltd(600000) tons / year to 1.1 million tons / year; The MDI capacity of Hungarian BC company also expanded from 300000 t / A to 350000 T / A in October. On the other hand, the price difference of MDI also showed an expanding trend in 2021. According to wind, the average market price of aggregated MDI in 2021 was 1986493 yuan / ton, a year-on-year increase of 37.41%; The average market price of pure MDI was 2233890 yuan / ton, a year-on-year increase of 25.25%. The price difference between polymerized MDI and pure benzene was 1383513 yuan / ton, with a year-on-year increase of 24.73%; The price difference between pure MDI and pure benzene was 1630911 yuan / ton, a year-on-year increase of 12.70%. At present, the company is the largest MDI supplier in the world. By the end of 2021, it has an MDI capacity of 2.65 million tons / year. At the same time, the company’s new production capacity has been promoted in an orderly manner. Among them, the 400000 T / a MDI project of Fujian base and the Shanghai Pudong Development Bank Co.Ltd(600000) T / a MDI project of Ningbo base are under continuous construction. With the continuous production of new projects, the company’s competitive advantage is expected to continue to enhance.
TDI is booming and Wanhua’s production capacity is expanding steadily
Affected by tight supply, TDI prices have continued to rise recently. According to wind, as of March 14, the average market price of Q1 TDI in 2022 reached 1859247 yuan / ton, a year-on-year increase of 25.62% and a month on month increase of 27.09%; The price difference between TDI and toluene reached 1229505 yuan / ton, with a year-on-year increase of 22.57% and a month on month increase of 40.06%. The boom continued to rise. At present, the company has a TDI capacity of 650000 tons / year, which will fully benefit from the recovery of the industry boom. Meanwhile, Wanhua Chemical Group Co.Ltd(600309) invested 1.927 billion yuan to build a 250000 T / a TDI expansion project in Fujian Industrial Park. The project and Fujian 800000 T / a PVC project were started on February 7, 2022. The TDI project is expected to be put into operation in 2023. With the steady expansion of TDI capacity, the company’s competitiveness and voice in TDI industry will continue to increase.
Million tons of ethylene operated at full capacity, and the performance of the petrochemical sector achieved a big breakthrough
The petrochemical sector will continue to adhere to the strategy of “light assets and high turnover” in 2021. At the purchasing end, “control resources, expand channels and build systems”, constantly expand global LPG strategic procurement resources, actively participate in LPG business, reduce procurement costs and control procurement risks; By investing in vlgc and other transportation resources, reasonably control the logistics cost, and improve the supply guarantee capacity and cost competitiveness of the raw material purchasing end. The sales side focuses on “value marketing, strategic marketing and cultural marketing”, and actively promotes the in-depth cooperation mode of strategic customers. The company’s petrochemical business achieved a major breakthrough, in which the annual revenue was 61.409 billion yuan, a year-on-year increase of + 132.46%, and the sales volume was 10.04 million tons, a year-on-year increase of + 59.80%; Among them, 2021q4 achieved a revenue of 18.72 billion yuan (year-on-year + 161.19%, month on month + 19.75%), and a sales volume of 2339800 tons (year-on-year + 23.71%, month on month – 10.43%). 2021 is the first year for the company’s million ton ethylene plant to start up at full capacity. The new brands of polyolefin and PVC products have been promoted in an orderly manner, the output and sales of main products have increased year-on-year, and the price of petrochemical products has also increased significantly compared with the same period last year. Throughout the year, the average price of propylene in Shandong was 7904 yuan / ton, an increase of 16.39% at the same time; The average price of Po in Shandong was 16551 yuan / ton, an increase of 38.81% at the same time; The average price of butanol in Shandong was 12269 yuan / ton, with an increase of 100.54%; The average price of acrylic acid in East China was 11902 yuan / ton, with a same increase of 72.23%; The average price of butyl acrylate in East China was 16348 yuan / ton, an increase of 95.78%; The average price of PP wire drawing in East China was 8633 yuan / ton, an increase of 9.98% at the same time; The average price of LLDPE membrane grade in East China was 8,64 yuan / ton, with a same increase of 15.64%; The average price of ethylene PVC in East China was 9624 yuan / ton, an increase of 37.94%.
ADI achieved leadership, ternary battery materials and biodegradable polyester were put into operation, and the new material business continued to expand
In 2021, the role of ADI business changed from follower to leader, the sales volume of waterborne resin business of emerging technology division increased significantly, and the battery material business continued to advance; The competitiveness of PC products of the high performance polymer business unit has been further improved, and the operating rate of PC devices in 2021 is at the leading level in China. In 2021, the business of fine chemicals and new materials achieved a revenue of 15.464 billion yuan, a year-on-year increase of + 94.18%, and a sales volume of 760000 tons, a year-on-year increase of + 36.95%; Among them, 2021q4 achieved a revenue of 4.661 billion yuan (year-on-year + 84.42%, month on month + 10.66%), and a sales volume of 227300 tons (year-on-year + 31.48%, month on month + 12.66%). During the reporting period, the 60000 T / a PBAT biodegradable polyester project and the 10000 t / a lithium ternary cathode battery material project of Meishan base in Sichuan have been successfully put into operation, and the biological experiment base was successfully handed over in 2021; Through continuous optimization of the modified device, the stability of key equipment has been significantly improved. At the same time, NMP, lithium iron phosphate cathode material and polyether amine are also under continuous planning and construction. At the same time, the company actively distributes the carbon fiber field and plans to join hands with Baowu carbon industry to set up a new joint venture Zhejiang Baowan Carbon Fiber Co., Ltd. in Zhejiang to distribute the polyacrylonitrile (Pan) based carbon fiber market, in which Baowu carbon industry holds 51% equity and Wanhua Chemical Group Co.Ltd(600309) holds 49% equity. Through cooperation with Baowu carbon industry, Wanhua will further expand its territory in the field of new materials. With the continuous expansion and landing of the company’s new material business, the new material business is expected to become a new performance growth point of the company. At the same time, relying on the resource advantages of Wanhua Industrial Park, the company plans to build an industrial cluster of high-end fine chemicals and high-performance materials in Penglai.
R & D investment continued to increase, and the driving force of technology increased steadily
The company continued to increase R & D investment. In 2021, the company’s R & D expenses reached 3.168 billion yuan, a year-on-year increase of 55.07%, accounting for 2.18% of operating revenue; Among them, Q4 R & D expenses in 2021 reached 1.019 billion yuan, with a year-on-year increase of 65.42% and a month on month increase of 9.92%, accounting for 2.67% of operating revenue. It mainly focuses on the technological incubation of new business segments, such as carbon neutral technologies, polyurethane foam degradation and recycling, degradable materials and key monomers, high performance materials (nylon 12, special PC, POE, optical grade PMMA, etc.), new energy storage and battery materials, separation and purification, and so on.
In 2021, the company’s chemical plant precise design and process optimization continued to tap potential and increase efficiency, and the core manufacturing technologies such as MDI, ADI and TDI continued to be upgraded iteratively, with their competitiveness continuously enhanced. In the field of polyurethane, the sixth generation MDI technology was successfully applied to Yantai MDI plant, realizing the stable operation of 1.1 million tons per year; The independently developed hydrogen chloride catalytic oxidation chlorine production technology is fully mature and finalized, and is shortlisted as the best practice of sustainable development in chemical week 2021; After the optimization of petrochemical units such as acrylic acid, ester and PVC, the operation stability and operation level of the unit are in the leading position in the industry. The self-developed large-scale PO / SM, continuous DMC polyether technology and aromatic polyester polyol series new products have been industrialized successfully, and the product indicators have reached the level of excellent products. At the same time, the technology of ultra fast demoulding cold insulation composite and ultra-low odor environmental protection composite representing the leading level of the industry are introduced; In terms of new application and development of polyurethane, LNG thermal insulation composite technology and fast curing and efficiency improvement technology of aldehyde free wood-based panel have been introduced, the world’s first set of industrialization key and process of continuous spraying and sizing for aldehyde free plywood have been developed, and the industrialized prototype has been manufactured and tested successfully; At the same time, it has successfully developed aldehyde free ultra-thin fiberboard technology in conjunction with industry customers and scientific research institutes, which has effectively promoted the healthy and green development of wood-based panel industry. Several new products of the company have completed the pilot test certificate, and have the conditions for industrial scale-up. Meanwhile, Wanhua Ningbo High Performance Materials Research Institute and Meishan synthetic biology pilot base were officially put into use, the phase II project of the global R & D center was capped, and the newly established carbon neutralization research center also launched a number of forward-looking technology R & D projects such as CO2 emission reduction and comprehensive utilization. Throughout the year, the company applied for 805 invention patents outside China and obtained 416 new authorizations, forming a strong intellectual property protection system.
Continuous empowerment of talent construction
Focusing on new business layout, social recruitment reached a new high, attracting nearly 400 scientific research, technical and skilled talents to join; Deepen industry university cooperation, enhance the adhesion between Wanhua and colleges and universities, expand channels, expand the source of students, absorb more than 2000 excellent graduates of undergraduate, doctoral and higher vocational colleges, and be determined to become the preferred employer in the chemical industry.
The company innovates talent training methods, and constantly optimizes projects and enriches courses around the three fields of leadership, specialization and professionalization. Leaders are invited to further improve the leadership of the company, and excellent teaching methods are shared in the field of internal management, so as to further improve the leadership of the company. In the field of specialization, design richer and more targeted training projects according to the needs of the company and departments, and strengthen the training of professional talents with the help of internal and external experts and teachers. In the field of professionalization, we will continue to strengthen cultural guidance and recognition, pay more attention to and support new employees, and help them adapt and grow rapidly. And continue to identify talents through various means to provide important reference for the company’s appointment and cultivate more six talents for the company.
The new energy battery materials business is a new field entered by the company, and the industry competition is fierce. It is an innovative business with high risks and uncertainties. In order to ensure the consistency between employees and project risks and benefits, the employee stock ownership platform holds 20% shares in Wanhua Chemical Group Co.Ltd(600309) (Sichuan) battery materials technology Co., Ltd. and Sichuan Wanlu Industrial Co., Ltd.
Relying on the resource advantages of Wanhua Industrial Park, the company plans to build an industrial cluster of high-end fine chemicals and high-performance materials in Penglai. As this business is an incremental new business with high uncertainty, in order to keep the risk and income of employees consistent with the project, Wanhua Chemical Group Co.Ltd(600309) holding 80% and employee stock ownership platform holding 20% established Wanhua Chemical Group Co.Ltd(600309) (Penglai) Co., Ltd. to promote the construction of Penglai base. In 2022, the company’s management theme is “talent year”. The company’s three industrial directions are clearly laid out, and the major bases are rapidly constructed. The urgency of talent demand is unprecedented. The process of talent training needs to be prepared in advance in quantity. At the same time, it is necessary to innovate the talent training system, accelerate talent growth and quickly build an employee team to support the company’s business development.
The company accelerated its expansion, continued to promote project construction, and highlighted a new round of growth
Wanhua Chemical Group Co.Ltd(600309) continues to accelerate, the project construction continues to advance, and the industrial production operates stably. In 2021, the cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets reached 27 billion yuan, a year-on-year increase of 16.20%; In Q4 of 2021, the cash paid by the company for the purchase and construction of fixed assets, intangible assets and other long-term assets reached 8.054 billion yuan, reaching a record high, with a year-on-year increase of 37.86% and a month on month increase of 5.46%. At the same time, by the end of 2021, the construction in progress of the company has reached 29.352 billion yuan, accounting for 45% of the fixed assets, and Wanhua Chemical Group Co.Ltd(600309) will enter a period of rapid expansion. According to incomplete statistics, based on the average price since 2022, if all Wanhua Chemical Group Co.Ltd(600309) existing planned projects are put into operation as scheduled, it is expected that 2
