From "A Drop Of Oil" To "A Cloth", Tell You The Secret Of Hengli Group'S Whole Industry Chain Operation.

Starting from scratch, if the output value will exceed 500 billion yuan this year, Hengli Group has made remarkable commercial legend in 25 years, becoming a microcosm of the development of China's private enterprises. Founded in South of Jiangsu Hengli Group, today's business layout extends to many provinces and cities. In particular, this year's 20 million ton / year refinery and chemical integration project is to enable Hengli Group to operate from "one drop of oil" to "one piece of cloth" all industrial chain operation. Hengli Group is ranked the top forty-sixth among the top 50 Chinese companies. At the same time, it ranks among the thirteenth manufacturing enterprises in China.

Chen Jianhua, chairman of Hengli Group, said in a recent media interview that the whole industry chain operation mode made Hengli Group realize the qualitative change of the overall capacity structure and business mode upgrading, and broke the unfavorable situation of high dependence on the import of aromatics in China, and further strengthened the international discourse power of the national chemical industry. In the future, the company will focus on high quality development, give full play to the core role of the 20 million ton / year refining and chemical integration project, continuously enhance innovation capability and comprehensive competitiveness, and build Hengli Group into a world-class competitive enterprise with global competitiveness.

"Do the best in the industry"

Born in Suzhou, Chen Jianhua founded a small factory with only 27 employees and three mu three points in 1994 - Wujiang chemical fiber weaving factory, becoming the first batch of private entrepreneurs in Suzhou after the reform and opening up.

At that time, 104 silk looms, 8 winding machines, 35 twisting machines and 4 thread splicing machines were all in front of them. Since then, through a series of equipment upgrading and upgrading, the company has launched 1200 Ingrid network vehicles, water jet looms and other advanced international level equipment, greatly improving production capacity, and laid a solid foundation for Hengli Group's development and growth in the future.

Chen Jianhua said that one of the principles of the company's development is "to do the best in the industry". Even if the main business of the company was textile and chemical fiber, the structure was relatively simple, but the scale should be the biggest and the quality should be the best.

Since then, Hengli Group has been working hard to establish Jiangsu Boya Textile Co., Ltd. in the textile field. In 2007, it invested in the Hengli (Suqian) Industrial Park, the largest project of South North Industrial Transfer in Jiangsu Province, and set up Jiangsu de Shun textile and Edward textile. Hengli Group has 12000 water jet looms and air-jet looms.

With the expansion of weaving capacity, Hengli Group did not stop in front of the glory. The company realizes that sooner or later the textile industry will face the challenge of continuous rising labor costs, and it is the only way for enterprises to continue to develop as far as possible to the upstream industry with more lucrative profits. As a result, Hengli Group continued to expand polyester polyester business.

In the field of polyester new materials, Hengli Group established Hengli Chemical fiber into the chemical fiber industry as early as 2002. Over the next ten years, Hengli Chemical fiber melt direct spinning civil silk production line, 200 thousand tons / year super bright wire project, 200 thousand ton / year polyester industrial yarn project, deli chemical fiber 200 thousand tons / year differential fiber project polyester production line, Yingkou Kang Hui Petrochemical Co., Ltd. two PBT polyester engineering plastics production line, BOPET production line and a series of projects, Hengke new material phase 400 thousand tons / year differential polyester filament project has been put into operation one after another. In 2018, Hengli Group rapidly promoted Hengke new material two phase 1 million 350 thousand tons of high quality differential textile new material project. At present, Hengli Group has reached 2 million 810 thousand tons of polyester annually.

Under the idea of "do the best in the industry", Hengli's polyester polyester business is developing at a differentiated and high-end way. It also has the advantages of scale cost and technological R & D, and the product has the characteristics of "high barriers, high specification and high premium".

A chemical industry people said that Hengli polyester production capacity in the current FDY based, large capacity, and are mainly fine denier, ultra fine high-end products. At the same time, Hengli is one of the few companies that have both the production capacity of civilian silk and industrial yarn at the same time. It has deep layout in the field of polyester with high technology and R & D content, and its business structure is more perfect. At the same time, while giving full play to its own technological advantages, it effectively balances the profit cycle risk of civilian silk.

　　 Open up the whole industry chain

The main raw material of polyester comes from petroleum refining and chemical industry. In order not to be constrained by upstream raw materials, Hengli Group began to enter the petrochemical industry.

In 2010, Hengli Petrochemical (Dalian Changxing Island) Industrial Park was opened and Hengli Group entered the PTA industry. In 2012, the first phase PTA project of the industrial park was put into operation. In 2015, the two phase PTA production line was successfully delivered at one time. At this point, Hengli petrochemical PTA production capacity reached 6 million 600 thousand tons, is one of the world's largest single capacity PTA plant.

"In what era do we have to do anything in the era?" Chen Jianhua said, "with the growing scale of the company and the establishment of leading position in the field of chemical fiber and polyester new materials, Hengli must expand to the upstream refining and chemical links to solve the problem of raw material necking."

In polyester industry chain, PX-PTA- polyester is the core of the spindle. Affected by many factors such as environmental pressure, domestic PX capacity is seriously insufficient, and Industry Supply and demand is seriously unbalanced. In the first half of 2018, China's PX dependence reached more than 60% of its historical highs, becoming the last competitive link of China's polyester industry chain.

Affected by this, most of the industrial chain profits have been directed to PX manufacturers in Japan, Korea and Singapore for many years. "The domestic and downstream enterprises are mainly working for foreign PX manufacturers, and the situation that PX relies heavily on imports is changing." An industry insider told the China Securities Journal reporter.

At the end of 2014, the planning and layout plan for petrochemical industry, issued by the Ministry of national development and Reform Commission and the Ministry of industry and commerce, was released. Upgrading the self-sufficiency rate of raw materials such as ethylene and PX was one of the background of this plan. The above plan has set up seven major petrochemical industrial bases in Changxing Island, Dalian and other provinces. At the same time, part of the project approval authority has been delegated to the provincial level. Huge opportunities lie ahead of Hengli Group.

Since 2015, Hengli Group has expanded its oil refining and chemical industry to create a full industry chain operation mode. In December of that year, Hengli 20 million ton / year refinery and chemical integration project started. This project is the largest and most complex major project ever built by Hengli Group. In addition, the 1 million 500 thousand ton / year ethylene project related to refining and chemical projects will be built in full scale and will be put into operation in the fourth quarter of this year.

Chen Jianhua said that the operation and development of enterprises should see changes in the macro market environment and treat the band changes in the market dialectically. In the cold winter, we should seize the opportunity to practice ourselves, accumulate our strength and wait for the coming of a new round of opportunity.

Today, the Hengli Group, which has been established for 25 years, has built a complete industrial chain of "crude oil, arene, ethylene terephthalic acid (PTA), ethylene glycol polyester (PET) - civilian silk and industrial yarn, engineering plastics, film and textile". It has become the world's first comprehensive petrochemical textile enterprise to complete the whole industrial chain.

Capital market assistance

The petrochemical industry is a capital intensive technology industry with strong investment intensity. The polyester industry chain has a cyclical cycle, and the enterprises that are the first to be put into production are conducive to the exclusive industrial chain dividends and effectively resist the risk of cyclical fluctuations from the downstream polyester. At the same time, financing capacity is related to project life and death.

Hengli Petrochemical is the most important subsidiary of Hengli Group, and is also the most important capital operation platform of Hengli Group. By the end of 2015, Hengli Petrochemical had injected 10 billion 800 million yuan into big rubber and plastic products to achieve backdoor listing. After listing, Hengli Petrochemical has gradually injected the assets of related industrial chain into a listed company through a series of restructuring, and the related asset prices have been revalued, and the cost of financing has been significantly reduced.

　　 In 2017, Hengli Petrochemical launched a major asset restructuring plan to buy 100% stake in Hengli investment and 100% stake in Hengli refinery for 11 billion 500 million yuan, and PTA assets will be injected into listed companies, including the 6 million 600 thousand tons / year PTA production unit with the largest capacity in the world. At the same time, no more than 11 billion 500 million yuan matching funds will be raised for Hengli 20 million ton / year refining and chemical integration project.

The implementation of this reorganization means that the whole industrial chain of "crude oil aromatic PTA polyester civil silk and industrial yarn" has been injected into the listed companies, laying a solid foundation for Hengli Petrochemical to enter the upstream refining and chemical link step by step, and become a landmark event of Hengli Group's overall structural replacement and Hengli Petrochemical's leaping development.

After the reorganization and implementation, the complete industrial chain will greatly enhance Hengli Petrochemical's ability to resist market risks and the ability of industry to guide. Chen Jianhua said.

Hengli 20 million ton / year refining and chemical integration project is the world's largest petrochemical construction project with the largest scale, the most complicated technological process, the longest processing flow, the highest degree of business integration and the most complete industrial support. It is also the largest petrochemical project with the fastest construction and earliest production in China's seven major petrochemical industrial bases. The capital market has become one of the boosting forces for the rapid implementation of the project.

　　 With this project, Hengli Petrochemical has achieved about 14000000 tons of chemical products by processing 20 million tons of crude oil, and the chemical product rate is as high as 70%. It has pioneered the largest oil production rate, the highest rate of chemical products and the highest value added production of refining and chemical enterprises. The 4 million 500 thousand ton / year Aromatics Complex can increase domestic aromatics production by 30%, supplement aromatics supply short board, and reverse the long-term dependence on imports.

Chen Jianhua said that the project is the key to Hengli Petrochemical to open up the upstream and downstream industrial chain, and it can effectively lock all links profits. At the same time, we can guarantee the supply of raw materials, drive the cluster development of downstream industries, further enhance the company's ability to resist risks and profitability.

It is reported that the important matching project of the project is the 1 million 500 thousand ton / year ethylene project and the 2 million 500 thousand ton / year PTA-4 project, which is planned for the fourth quarter of this year. In addition, 2 million 500 thousand tons / year PTA-5 project, 1 million 350 thousand ton / year multi-functional high quality textile new material project and 200 thousand tons / year high performance automotive industrial yarn technical transformation project will be put into operation next year. By 2020, all projects under construction will be released. Hengli Petrochemical (Dalian Changxing Island) Industrial Park is expected to achieve output value of 300 billion yuan and profits tax of 65 billion yuan.

　　 With the completion of the 20 million ton / year refinery integration project and the comprehensive opening up of the upstream and downstream industry chain, Hengli Petrochemical has continued to improve its profitability. In the first half of this year, Hengli Petrochemical achieved a profit of 42 billion 333 million yuan, an increase of 60.04% over the same period last year, and a net profit of 4 billion 21 million yuan attributable to shareholders of listed companies, an increase of 113.62% over the same period last year. In the first half of the year, its performance exceeded the profit level of last year. At the same time, the scale and profitability of semi annual revenue reached a record high.

The development of Hengli Petrochemical has been recognized by the capital market. The market value of the company has exceeded 110 billion yuan in recent years and has become the highest listed company in the northeast region.