Dye Giant Zhejiang Longsheng Has Received 145 Million Government Incentives.

Local dye leader, Zhejiang Longsheng group Limited by Share Ltd (hereinafter referred to as "Zhejiang Longsheng") issued a notice recently that the company will receive a total of 145 million yuan of government reward and subsidy funds due to the relocation and exit of the road ruins factory. In December 30, 2019, it received 125 million yuan from the reward subsidy fund, and the remaining amount of 20 million yuan will be paid in 2020. In the past 12 months, the subsidiary companies in the consolidated statements of the company and their subordinates received a total of 509 million yuan of government subsidies, accounting for 12.38% of the company's net profit in 2018.

Zhejiang Longsheng is the world's leading producer of disperse dyes and two phenylene amine. In the first three quarters of 2019, Zhejiang Longsheng achieved a business income of 16 billion 620 million yuan, an increase of 14.1% over the same period last year, a net profit of 3 billion 882 million yuan, an increase of 22.13% over the same period last year. Net profit after deducting the net profit was 3 billion 380 million yuan, an increase of 9.85% over the same period, of which the net cash flow of operating activities was 4 billion 241 million yuan, an increase of 51 times over the same period last year. In the three quarter of 2019, Zhejiang Longsheng realized operating income of 6 billion 974 million yuan, an increase of 29.17% over the same period, an increase of 42.97% over the same period, and a net profit of 1 billion 351 million yuan to the parent company, an increase of 2.30% over the same period last year, and a 6.43% increase in the chain, all of which hit a new high in the single quarter.

In the first three quarters of 2019, Zhejiang's Longsheng dyes sold a total of 165 thousand tons, down 11.6% from the same period last year, and the overall dyestuff business was relatively low. Although the "321" Xiangshui incident promoted the rapid rise in the price of intermediates resorcinol and disperse dyes, the price of disperse dyes fell back to the low level of the beginning of the year after the two quarter high. The decline of the dye business slowed down the growth of the company's performance. In the three quarter of 2019, the company achieved a revenue of 6 billion 974 million yuan, an increase of 29.17% over the same period last year, and a net profit of 1 billion 351 million yuan to the parent company, an increase of 2.30% over the same period last year.

In the first three quarters of 2019, Zhejiang Longsheng sold 80 thousand and 300 tons of intermediate products, down 8.9% from the same period last year, and the average price of intermediates was 43 thousand and 700 yuan / ton, up 30.84% from the same period last year. In the three quarter, the average price of intermediates in the single quarter was 46 thousand yuan / ton, which was basically unchanged from the two quarter, and the average price continued to rise 8% in the first half of the year. At present, the company has 30 thousand tons of resorcinol production capacity and 65 thousand tons of inter amine two amine production capacity. Since 2015, it has been the focus of the establishment of the intermediate business plate, has become an important source of company earnings significantly improved. Future Ltd plans to expand the production capacity of two benzyl amine to 100 thousand tons / year, the production capacity of resorcinol is extended to 50 thousand tons / year, and at the same time, it expands the production of related intermediates with integration as the core. The intermediate business is expected to become an important source of long-term development and profitability of the company.

Gong Cheng, an analyst at Guoxin Securities, believes that Zhejiang Longsheng is a global leader in the dyestuff industry. It has a very strong industry threshold, not only in terms of capital and channels, but also more importantly, the company has accumulated a long time in the aspects of safety production management, circular production, pollution reduction and emission reduction, and has already achieved the leading level in the industry. In the chemical industry, the fine chemical industry is one of the most stringent requirements for production safety. From the observation, Zhejiang Longsheng can expand its leading position in the intermediate business and expand its market space with the help of this advantage. Zhejiang Longsheng's development in fine chemical industry is worth looking forward to. In the past two years, the company has fully enjoyed the high prosperity of dyestuff and intermediate products, and will have more capital to develop other subdivision products in the future.