Rongsheng Petrochemical Leveraged Capital Market &Nbsp; Leading Polyester Polyester Industry In China.

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Rongsheng Petrochemical is located in Xiaoshan, Zhejiang, which has the advantage of polyester industrial cluster. It is a large PTA and polyester filament production enterprise in China. Its main products include PTA, PET chips, polyester drafting yarn (FDY), polyester preoriented yarn (POY), polyester and elastic wire (DTY) three series, and has gradually formed a complete industrial chain of petrochemical, polyester, spinning and elastic integration production.

As the sixth largest polyester polyester production enterprise in our country, Rongsheng petrochemical company currently has the production capacity of 600 thousand tons of polyester, polyester fiber spinning (FDY, POY) 570 thousand tons, polyester terylene and DTY (250 thousand tons). In addition, the holding subsidiary of Yisheng and shares company Zhejiang Yisheng has 1 million 200 thousand tons and 1 million 60 thousand tons PTA design and production capacity respectively.

Giving full play to competitive advantages and upgrading

At present, China's polyester polyester industry is in the stage of adjustment and upgrading. On the one hand, the industry is fiercely competitive, and the dominant enterprises in the industry are perfecting the industrial chain by investing in the industry to obtain economies of scale and reduce paction costs; backward production capacity of disadvantaged enterprises gradually withdraw from the market, and the concentration of industries gradually increases, and production resources are gradually concentrated to dominant enterprises.

On the other hand, fierce competition in the industry has prompted enterprises in the industry to intensify technological pformation, strive to develop new products, increase value-added products, and accelerate the upgrading of the industrial structure.

In recent years, Rongsheng Petrochemical has brought into full play the integration advantages and scale advantages of PTA polyester polyester industrial chain, as well as the advantages of location and brand in the PTA and polyester filament industry.

According to the requirements of the "11th Five-Year development plan" of China polyester industry, in order to improve the self-sufficiency rate of raw materials in the polyester industry, the State encourages state-owned, private and foreign capital to participate in the construction of polyester raw materials in various ways of cooperation, especially encouraging qualified polyester enterprises to develop upstream, forming an integrated raw material supporting advantage.

Rongsheng Petrochemical Co., Ltd. has owned the PTA, polyester, spinning and firing integrated industrial chain through Yisheng holding company and Yisheng holding company, which has reduced the impact of market price fluctuations on the overall profitability of the company. Under the condition of insufficient supply of PTA in Zhejiang, it ensured the stable supply of raw materials and reduced the main business cost of the company.

With the help of industry chain integration, Rongsheng petrochemical company can bring new profit growth point to the company. On the other hand, the overall coordinated development of the industrial chain is also conducive to improving the company's ability of steady growth, continuous profitability and risk resistance.

In addition, the scale advantage has further enhanced the market competitiveness of Rongsheng petrochemical company.

As of June 30, 2010, the total assets of Rongsheng Petrochemical amounted to 9 billion 325 million 166 thousand and 500 yuan, belonging to the parent company's stockholders' equity amounting to 2 billion 93 million 362 thousand and 800 yuan. In 2010 1, June, the operating income was 7 billion 56 million 896 thousand and 900 yuan, and the net profit attributable to shareholders of the parent company was 575 million 239 thousand and 500 yuan.

Rongsheng Petrochemical holding company Yanda Shanda PTA production capacity of 1 million 500 thousand tons, ranking third in the country, the company is still the sixth largest polyester polyester production enterprise, currently has 600 thousand tons of polyester production capacity, the production scale of all kinds of fiber filament products also occupies the leading position in the industry.

The expansion of production scale has effectively increased the production efficiency of Rongsheng Petrochemical Company, reduced the unit investment cost and unit energy consumption of the product, enhanced the market competitiveness of the company's products, and the gross profit margin of all kinds of products has been increasing steadily.

The role of location advantage in enhancing the market share of a company can not be ignored.

Located in Xiaoshan District of Hangzhou, Rongsheng Petrochemical is one of the important textile industrial bases in China. It is also a key industrial cluster area for chemical fiber raw materials, fabrics and clothing production in China. Market demand and product pactions are very active.

Rongsheng Petrochemical is closely related to China's famous chemical fiber Town, yayqian Town, Xiaoshan District, Hangzhou. It also owns China's textile purchasing Expo City and the largest chemical fiber trading market in the country, Qian Qing market.

Location advantage brings great convenience to the production and sale of polyester products, which enables the company to get market demand information timely, produce marketable products and arrange stock rationally.

In addition, after years of accumulation, Rongsheng Petrochemical has made some achievements in its brand strategy.

The "RONGXIANG" brand has been appraised as a famous trademark in Zhejiang province. In September 2007, it was also known as "China famous trademark". "RONGXIANG" brand polyester filament was awarded the title of "China famous brand product" and was listed as "national inspection free product".

In February 2010, the Zhengzhou Mercantile Exchange approved the PTA of Yexing production as the futures delivery brand and was identified as the futures free inspection delivery brand.

Leveraging capital market to achieve leapfrog development

Rongsheng Petrochemical raised funds to invest in Yanda Shenghua annual output of 1 million 200 thousand tons PTA project and Shengyuan chemical fiber annual output of 100 thousand tons of environmental health and multifunctional fiber technology pformation project.

According to industry analysis, the construction of 1 million 200 thousand tons PTA production base in Yanda was completed in April 2009. After the project was put into operation, the PTA market share of the company was greatly improved, which is conducive to solving the problem of raw material supply and improving the profitability of the company.

At the same time, the company through the sale of PTA products to fully enjoy the benefits of the domestic PTA industry boom, become an important profit growth point of the company.

And Shengyuan chemical fiber 100 thousand tons of environmental health and multifunctional fiber technology pformation project will further increase the differential rate of polyester products, which is the extension and upgrading of the existing main product line, and helps to improve the technical content and economic value added of the product, and promote the adjustment and optimization of product structure.

In addition, in terms of finance, the net assets and liquidity of Rongsheng Petrochemical will increase substantially after the fund is raised, and the asset liability ratio and cash flow situation will be improved. It can further optimize the assets and liabilities structure, effectively improve the company's financial status and enhance its ability to withstand risks. At the same time, when the fund is put in place, the diversified investment entities will be introduced, and the ownership structure of the company will also be further optimized. The net assets and net assets per share will increase significantly. With the gradual production of the capital raising investment projects, the efficiency of the project will gradually appear, and the profitability of the company will continue to rise, thereby promoting the steady increase of the net assets yield.