Qiu Jianlin'S Son Took Over 24 Years From Chairman And Brunei Petrochemical Company. In 2020, Hengyi Group Held A Big Move.

Brunei, a small country in Southeast Asia, has an area of only 2286 square kilometers, with a population of only more than 50 thousand people. But it is a truly rich country: in 2017, the per capita GDP of the country was as high as 28 thousand dollars. According to the world bank's standards, it has been listed among the developed countries.

But this is not the peak of GDP in the country: compared with the peak of GDP per capita GDP in 2012, Brunei's GDP has fallen by nearly 40%. The volatility is so intense that we can see the country's economic structure: in 2014, oil and gas production and exports accounted for about 67% of GDP. With such a single industrial structure, it is no wonder that the economy depends on the color of oil prices.

Faced with the ups and downs of oil prices, passive acceptance is clearly not the way to develop deep processing is the permanent solution. In July, Brunei in 19, ushered in the Sinopec of a Petrochemical Industrial Park, and the builder of this enterprise is a Chinese private enterprise Hengyi petrochemical. This investment is also the largest Chinese funded project in Brunei.

Where is Hengyi petrified? The official website found the following:

Hengyi Petrochemical is committed to developing into one of the leading and world-class petrochemical industry groups in China. It persists, consolidates and promotes the core competitiveness of its main business. Now it has gradually formed the "polyester + nylon" double chain driven industrial chain and "Petrochemical + multi-level industrial layout": with petrochemical and chemical fiber industry chain as the core business, petrochemical finance and petrochemical trade as the growth. Business, chemical fiber industry, big data and intelligent manufacturing are new businesses.

If the introduction of the above is boring, then the following picture will be clear.

　　 [picture] panorama of Hengyi petrochemical industrial chain

As can be seen from the above, Hengyi Petrochemical's domestic business is mainly concentrated in PTA, CPL and PET three chemical products. Among them, the PTA industry jointly owned by Rongsheng is not only the first in the world (28%), but also two times the second Hengli Petrochemical (15%), which is called the hegemony of the PTA industry.

　　 [picture] the status of PTA in China is difficult to shake.

Despite its brilliant achievements in the field of the three chemicals, Hengyi is still not satisfied, and is going to Brunei to develop its upstream industry. How can a Chinese petrochemical enterprise invest in Brunei?

As far as the layout of Brunei is concerned, Hengyi Petrochemical is a "must". The development of upstream refining and chemical industry is the established strategy of the company, but until 2014, the state has not yet released the refinery project to private enterprises. Is the wind waiting for the wind or the wind? Heng Yi Petrochemical real controller Qiu Jianlin resolutely cast his eyes overseas, looking for "oasis".

China is the world's largest importer of crude oil and the second largest consumer of crude oil. There is a big gap in crude oil production, and nearly 70% of oil is imported. Qiu Jianlin, who is in the refining and chemical integration industry, has a deep understanding of this. In his view, obtaining the supply of raw crude oil means that the company will have greater initiative.

In addition, the foreign exchange exposure of petrochemical enterprises due to the massive import of crude oil has also aroused Qiu Jianlin's vigilance. "The raw materials of refineries depend on imports, which means that a large amount of debt is settled in US dollars, while sales revenue comes from almost all of the country, and assets are settled in Renminbi." He laughs, "the mismatch of assets and liabilities leads to fluctuations in exchange rates, and corporate accounting is like jumping" disco ".

With the arrival of Brunei refinery project, the problem is solved. "We put the middle and lower reaches in the domestic market, and the upper reaches are overseas, forming a ratio of US $45% assets and 55% domestic assets, and the distribution of assets is more balanced."

At the same time, location, freedom of trade and cost advantages are also important considerations for Hengyi site selection. Brunei entered Qiu Jianlin's horizons.

Brunei has natural geographical advantages and low logistics costs. In addition, as an ASEAN member, Brunei is close to the refined oil demand market in Southeast Asia, and the product circulation in the region can be exempt from customs duties. By purchasing crude oil and selling refined oil nearby, we can save freight at both ends of production and marketing. " He said.

"The main cost of refineries is energy costs." Qiu Jianlin said, "our Brunei refinery's thermal coal comes from Kalimantan Island, and the price of electricity and steam is low. Compared with the domestic electricity price, the self operated power plant has the advantage of 5 cents to 6 cents per kilowatt hour. The cost savings are significant under the scale of more than 1 billion kilowatt hours a year.

In November 2019, the first phase of Brunei PMB petrochemical project, which cost 3 billion 450 million US dollars, was officially put into operation and began to contribute to efficiency. The company expects profit of 2 billion 800 million yuan to 3 billion 100 million yuan in 2019, an increase of 42.71% to 58% over the same period last year.

"More importantly, Brunei has no VAT and consumption tax, and our projects enjoy the longest 24 years of exemption from corporate income tax. This gives us great advantages in competition with similar enterprises in China, "Qiu Jianlin said. On the whole, Brunei refining and petrochemical projects have a profit of about 50% higher than that of the same volume refining and chemical projects in China.

Under the Brunei project's "blessing", Hengyi presents a unique industrial structure in the competition of peers, that is, the "pillar" of Qiu Jian Lin's mouth, the upstream and downstream industry chain is relatively balanced, and it can more effectively suppress cyclical fluctuations. In the past few years, Qiu Jianlin, who flew to Brunei almost every month, can hardly conceal his pride. "Now it seems that putting the refining and chemical project in Brunei is indeed the right thing to do."

Brunei Petrochemical two phase project is also ready to go, Qiu Jianlin said, the two phase of the project will make full use of the first phase of production of some raw materials, truly "eat dry clean", produce better synergy effect. "If you give me another chance, you will still choose Brunei." Qiu Jianlin's tone is firm.

Hengyi Brunei two phase will build 14 million tons of refining and chemical projects, supporting the annual output of 1 million 500 thousand tons of ethylene and 2 million tons of PX chemical production capacity.

Qiu Jianlin's son took over the chairman of Hengyi petrochemical company. How will Hengyi develop in the future?

With Hengyi opening a new chapter, Qiu Yi Bo, the son of Qiu Jianlin, the real controller of Hengyi group, has come to the fore.

In the evening of January 16th, Hengyi Petrochemical Company announced that the company, based on the need for strategic development, adopted the thirty-sixth meeting of the tenth board of directors of the company, and deliberated and adopted the motion on the election of the chairman and vice chairman of the company. Qiu Yibo was elected chairman of the company and Fang Xian Shui served as vice chairman of the company.

According to the relevant provisions, the above duties arrangement shall take effect from the date of the thirty-sixth meeting of the tenth board of directors, and the term of office will expire until the end of the current board of directors.

It is worth noting that the current chairman of Hengyi Petrochemical is Fang Xianshui, a veteran of Hengyi. Fang Xian Shui resume shows that he was born in March 1964 and has over 20 years of experience in production management of petrochemical and chemical fiber industry. He has been the general manager of Hangzhou Hengyi Industrial Corporation, general manager of Hangzhou Hengyi Chemical Fiber Co., Ltd. and general manager of Zhejiang Hengyi Group Co., Ltd. In addition, Fang Xian Shui is one of the important shareholders of the company's controlling shareholder, Zhejiang Hengyi Group Limited. As of the announcement date, Fang Xian Shui directly owns 3 million 675 thousand shares of the company, accounting for 0.13% of the total share capital of the company.

Qiu Yibo is younger. CV shows that Qiu Yibo was born in December 1987 and has a bachelor's degree. He worked in the East China branch of Sinopec Chemical Sales Co., Ltd., now vice chairman and vice president of Hengyi Formosa Petrochemical Co. As of the announcement date, Qiu Yibo held 1 million 50 thousand shares of the company, accounting for 0.04% of the total share capital of the company. Compared to this meager stock, Qiu Yibo's other identity is Qiu Jianlin's son.

Hengyi Petrochemical disclosed that the independent directors believe that after reviewing the relevant information of Qiu Yibo and Fang Xianshui's biographical notes provided by the board of directors, we believe that their educational background, professional experience, professional competence and professionalism are in line with the company's terms of service and ability to perform their duties. The independent directors unanimously agree to the above personnel and job arrangement.

In recent years, young Qiu Yibo has appeared on public occasions from time to time. Hengyi group's official website 1 monthly publication 2018, Hengyi Group Co., Ltd. donated the ceremony to the Hangzhou Normal University Education Foundation at the A118 lecture hall of the academic exchange center of Cang Qian campus. Qiu Yibo attended and witnessed the donation ceremony as the vice-chairman and vice president of Hengyi Formosa Petrochemical Co.

How to go in the future? Qiu Jianlin put his son on the "head" position has its deep meaning, but also clearly gives the answer to Hengyi's future.

10 years 20 billion yuan, this is Qiu Jianlin allocated funds for Hengyi research and development investment. "Spending money is a very particular thing. It pursues efficiency, dedication, wisdom and responsibility rather than simply burning money." He said.

In 2018, Hengyi Petrochemical proposed "research and development ten year climbing plan". By increasing the development of high value-added and differentiated products, we realized the diversification, serialization, quality and uniqueness of product mix. Taking the antimony free polyester product developed by the company as an example, through the industrialization of melt direct spinning filament, the pollution and health problems of heavy metal antimony in polyester fiber can be solved from the source.

In the ten year, "climbing the peak", Qiu Jianlin focused on the application of the first half of the development, including the development of new products and the transformation of production processes. "Commodities are compared to quality and cost. Large scale production enterprises, at a rate of millions of tons, a new technology can reduce energy consumption and raw materials significantly, reducing the cost and increasing efficiency is the competitive advantage.

After laying a solid foundation on the application level, Hengyi Petrochemical will continue to challenge basic and original research and development. "The first person to climb Mount Everest is to open the way. For the leader of the industry, this is the price and mission. As the R & D plan enters the second half, it will gradually increase the proportion of development in the difficult area. Qiu Jianlin said.

At present, Hengyi Petrochemical has carried out long-term school enterprise cooperation with universities such as Zhejiang University and Donghua University. The company has set up a joint research and development platform such as Zhejiang University Hengyi global advanced technology research institute, Donghua University Hengyi Research Institute and so on. By building a new technological innovation system combining production, teaching and research, it will provide innovation power for long-term development. "R & D is just useless, really responsible for the enterprise and the state, and we must rely on solid work." Qiu Jianlin sighed with emotion.

For the future, Qiu Jianlin will not hesitate to talk about the current situation of overcapacity in the industry and the trend of speeding up the shuffling. Hengyi is ready to fight hard. "Our goal is to strive to break through 500 billion yuan and become the world's top 500 enterprises at the 50th anniversary level of construction enterprises." Qiu Jianlin said that as a leader in the industry, Heng Yi should continue to explore the way as the first Mount Everest climber. Heng Yi can go further and will go further.