Wealth: Hengli Petrochemical, With Cash Flow Of More Than 18.1 Billion Yuan, Made A Net Profit Of 5.5 Billion Yuan In The First Half Of The Year

Hengli Petrochemical Co., Ltd. (hereinafter referred to as "Hengli petrochemical"), which has just been listed in China's fortune 500 in 2020, released its annual report for the first half of 2020 on the evening of August 12. During the reporting period, the company's operating revenue reached 67.358 billion yuan, a year-on-year increase of 59.11%; and the net profit attributable to shareholders of listed companies was 5.517 billion yuan, with a year-on-year increase of 37.20%.

During the reporting period, the operating cash flow of Hengli petrochemical company was greatly improved, and the net cash flow from operating activities was as high as 18.192 billion yuan, with a year-on-year increase of 47.00%. In the first half of the year, Hengli Petrochemical's excellent profitability and stable business anti risk ability far exceeded market expectations.

The reporter read the announcement and learned that the products are divided into three parts:

During the reporting period, the output of refined oil reached 1.7812 million tons, the sales volume reached 1.6095 million tons, and the operating income reached 6.707 billion yuan;

During the reporting period, the output of chemical products reached 10.7925 million tons, the sales volume reached 7.3105 million tons, and the operating income reached 31.219 billion yuan;

During the reporting period, PTA output reached 4.584 million tons, sales volume reached 4.3667 million tons, and the operating income reached 15.098 billion yuan;

During the reporting period, the output of polyester products reached 1.2877 million tons, the sales volume reached 1.0269 million tons, and the operating income reached 7.66 billion yuan.

According to the financial report, as the largest PTA manufacturer in China, Hengli Petrochemical has four PTA production lines, with a total annual output of 9.1 million tons of PTA, and has built and is commissioning a new production capacity of 2.5 million tons. It is the largest listed company in China with the scale of PTA equity capacity and the scale of units under construction. The total capacity of PTA will reach 11.6 million tons per year in the second half of this year, becoming the global capacity specification PTA production supplier with the largest mold, the most advanced technology and the most obvious cost advantage, and the only one equity production capacity company of more than 10 million tons in the industry.

Hengli Petrochemical is expected to put into production 600000 tons of polyester DTY, POY new capacity and 33000 tons of PBAT degradable plastic production capacity in the second half of the year. The construction of the remaining capacity is expected to be put into operation next year, and the total polyester production capacity of the company will also reach an annual output of more than 4 million tons. With the continuous improvement of production capacity structure and capacity scale of downstream polyester business plate, the market support role of upstream petrochemical raw material industry will be significantly enhanced.

According to public information, Hengli Petrochemical is the core listed subsidiary of Hengli Group, one of the world's top 500 companies, with its headquarters in Dalian, Liaoning Province. At present, it has established major business bases in pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet, pet. The company originated from Wujiang Chemical fiber weaving factory in 1994. After years of hard work, Jiangsu Hengli Chemical Fiber Co., Ltd. was officially established in 2002.

In January 2020, Hengli Petrochemical's fourth set of 2.5 million tons / year PTA project was officially put into operation, and the 1.5 million tons / year ethylene project was successfully started up at one time. In June 2020, the fifth set of 2.5 million tons / year PTA project was put into operation. Hengli Petrochemical has successfully formed the integrated development mode of "crude oil aromatics, ethylene PTA, ethylene glycol polyester filament, polyester film and engineering plastics" in the whole industrial chain, and promoted and improved the whole chain strategic layout and full coverage business operation from "a drop of oil" to "a piece of cloth".

Up to now, Hengli Petrochemical has an annual production capacity of 4.5 million tons of PX in the upstream, providing support for downstream PTA products of the company. The fourth set of PTA plant with an annual output of 2.5 million tons was officially put into operation in January 2020, and the fifth set of PTA plant was put into operation at the end of June 2020. The total PTA production capacity of the company will reach 11.6 million tons, and the leading position of PTA industry is stable. Some of Hengli Petrochemical's PTA products are for the company's polyester factory's own use, and the rest are used for export to downstream chemical fiber customers. In the downstream production field, Hengli Petrochemical has deployed about 2.8 million tons of high-end polyester production capacity, including 1.55 million tons of civil polyester filament, 200000 tons of industrial polyester filament, 200000 tons of polyester film, 650000 tons of polyester chips and 185000 tons of engineering plastics. In addition, Hengli Petrochemical is under construction with a production capacity of 1.35 million tons of polyester filament for civil use and 200000 tons of industrial yarn, and the production capacity is expected to start in 2020 The total production capacity of all kinds of polyester products of Hengli Petrochemical will exceed 4.3 million tons. The product structure of the company develops in a balanced way, and the upstream and downstream industrial chain has a strong synergistic effect.

Hengli Petrochemical's controlling shareholder is Hengli Group, one of the world's top 500 enterprises, holding 29.84% of the company's shares. The actual controllers of the company are Chen Jianhua and fan Hongwei. According to the enterprise investigation, they hold 64.60% shares directly and indirectly. The company's wholly-owned and holding subsidiaries include Hengli investment, Hengli refining and chemical, Hengli new materials and Kanghui petrochemical. Among them, Hengli investment operates PTA product business through its holding subsidiary Hengli Petrochemical (Dalian) Co., Ltd.; Hengli Refining & Chemical Co., Ltd. mainly carries out 20 million tons / year refining and chemical integration project; Yingkou Kanghui Petrochemical mainly produces polyester film, polyester chips, engineering plastics and other products; Hengli new materials mainly deals in downstream polyester filament products business, helping the company's industrial chain to extend vertically.

According to the financial report, with the completion of the refining and chemical integration industrial chain, Hengli Petrochemical's operating revenue has achieved rapid growth since 2018. At the beginning of backdoor listing in 2016, Hengli Petrochemical's business income was 19.24 billion yuan. In 2018, with Hengli investment (Dalian) Co., Ltd. and Hengli Petrochemical (Dalian) refining and Chemical Co., Ltd. injected into the listed companies, and the 20 million tons / year refining and chemical integration project was officially put into operation and continuously released performance, the company's operating revenue achieved rapid growth, and the company's revenue CAGR reached 73.67% in 2016-2019. In 2019, Hengli Petrochemical achieved a revenue of 100 billion yuan for the first time, reaching 100.782 billion yuan. In the first quarter of 2020, under the influence of the spread of global epidemic situation and the sharp drop of crude oil price, Hengli Petrochemical still achieved 29.771 billion yuan of revenue, with a year-on-year growth of 97.77%.

Jin Yiteng, an analyst at Kaiyuan securities, said that at the beginning of 2016, Hengli Petrochemical's business income mainly came from various polyester products, of which, civil polyester filament accounted for 55.79% of the total revenue, polyester chip accounted for 22.51% of the total revenue, and industrial polyester filament, polyester film and Engineering plastics business accounted for 16.13% of the total revenue. With the comprehensive production of refining and chemical integration project, the company's business scope is further expanded, and the revenue structure presents the characteristics of diversification. In 2019, the operating revenue of chemicals, PTA, polyester and refined oil business accounted for 30.08%, 28.41%, 22.65% and 12.20% of the total revenue respectively. Hengli petrochemical, as the earliest and fastest industry leader to implement the strategic development of the whole polyester chemical fiber industry chain in China, realizes the coordinated and balanced development of the upstream, midstream and downstream business sectors, which helps to enhance the company's anti risk ability.

From 2018 to 2020, Henghua Petrochemical Co., Ltd. will continue to achieve a significant leap in the net profit and return to the parent company in the first quarter of 2018. At the same time, the company's cash flow continued to improve, and the company's net cash flow from operating activities increased year by year. In 2016, the company's net cash flow from operating activities was 730 million yuan, and increased to 16937 million yuan in 2019. A healthy cash flow level helps to enhance the company's solvency, reduce the company's financial risk, and realize the long-term and stable development of the company.

Jin Yiteng said that at the beginning of 2020, the refining and chemical industry will encounter the two-way impact of the spread of the epidemic situation and the fall of oil price; at the current time point, with the oil price rising and the epidemic situation easing, the private-owned large-scale refining and chemical industry will have a favorable situation. At present, Hengli Petrochemical's 1.5 million tons ethylene project has been put into commercial operation, 2.5 million tons of pta-4 was officially put into operation in January, and 2.5 million tons of pta-5 were put into operation at the end of June. The above new capacity will continue to contribute to Hengli petrochemical. From this point of view, as the first petrochemical aircraft carrier in China's eight major petrochemical industrial bases, jinyiteng has outstanding industrial chain integration advantages and scale advantages Hengli Petrochemical has entered the performance release period and low-cost crude oil dividend period. Hengli Petrochemical's whole industrial chain layout promotes the balanced development of product structure, and greatly enhances profitability and synergy.