Recently, Wanhua Chemical issued 12 announcements, disclosing its annual report for the first half of 2021, asset transfers and other matters.
Net profit in the first half of the year was 13.53 billion yuan, a year-on-year increase of 377.21%
In the first half of 2021, Yantai MDI equipment completed technical transformation and expansion of 1.1 million tons/year Yes, the company’s MDI production capacity has been further improved, new devices such as million tons of ethylene have been put into operation, and the output and sales of major products have increased year-on-year. In addition, as the global COVID-19 epidemic eases, demand in the downstream market improves; some chemical plants in overseas areas are affected by factors such as extreme weather, resulting in tight global supply and rising prices of chemical raw materials. The company’s main products have increased in volume and price compared with the same period last year, and operating results in the first half of the year have increased significantly year-on-year.
During the reporting period, the company achieved operating income of 67.657 billion yuan, an increase of 118.91% over the same period last year; operating profit 16.141 billion yuan, an increase of 382.54% over the same period last year; and achieved net profit attributable to shareholders of listed companies. 13.530 billion yuan, an increase of 377.21% over the same period last year.
Image source: Wanhua Chemical
Polyurethane business segment: Wanhua Chemical achieved a polyurethane series output of 2.0148 million tons in the first half of 2021 , sales volume was 1.8949 million tons; operating income was 28.419 billion yuan, a year-on-year increase of 111.78%; operating profit was 13.16 billion yuan, a year-on-year increase of 180.59%. In the first half of 2021, the global polyurethane market demand recovered significantly, and market demand continued its upward trend. Europe and the United States have implemented quantitative easing policies and consumer demand is strong. China has benefited from its complete industrial chain, production capacity advantages and strong epidemic prevention and control measures, attracting the return of overseas orders. The popularity of the shipping market also confirms the strong demand for product exports. At the same time, the domestic economy is improving and consumption upgrades have further boosted demand for polyurethane. Consumption upgrades, product quality improvement, spandex products are more used in textile fabrics, and the spandex industry continues to be booming in both supply and demand; formaldehyde-free has become a trend in customized furniture, and has begun to penetrate into the general decoration market; modern cold chain business is developing rapidly, and polyurethane Insulation boards have made great progress in this field with their excellent performance; “carbon neutrality” has also created a good external environment for the use of polyurethane in the field of building energy conservation.
Petrochemical business segment: In the first half of 2021, the petrochemical series output was 1.8866 million tons, and the sales volume was 5.0879 million tons; operating income was 27.057 billion yuan, a year-on-year increase of 159.81%; operating profit was 4.87 billion yuan, a year-on-year increase of approximately 1,200 times . In the first half of 2021, petrochemical products as a whole showed an upward trend due to rising crude oil prices and abnormal overseas installations. The price of Brent crude oil rose from US$51.8/barrel at the beginning of the year to US$75/barrel, creating a strong cost push for ethylene and polyolefin products. Domestic demand for chemical products has grown steadily, and overseas demand has gradually returned to normal levels. However, abnormalities in some overseas installations have caused most global petrochemical product prices to rise in the first half of the year.
Fine chemicals and new materials business segment: In the first half of 2021, the output of fine chemicals and new materials series was approximately 357,200 tons, and the sales volume was approximately 331,000 tons; operating income was 6.591 billion yuan, a year-on-year increase of 106.23% ; Operating profit was 1.878 billion yuan, a year-on-year increase of 203.39%. In the first half of 2021, due to factors such as overseas epidemics and extreme weather, the supply of raw materials for new chemical materials was tight. With China’s effective prevention and control of the epidemic, economic development has fully recovered, and the demand for new chemical materials market has continued its upward trend.
Transfer tens of billions of assets to a wholly-owned subsidiary
Wanhua Chemical also announced that it plans to transfer assets related to the ethylene industry chain and its associated The claims, liabilities and labor force were transferred to the wholly-owned subsidiary Wanhua Chemical (Yantai) Petrochemical Co., Ltd. (hereinafter referred to as the “Petrochemical Company”). As of May 31, 2021, the book value of the assets related to the ethylene industry chain that the company plans to transfer is 11.071 billion yuan, of which the net book value of assets is 1.871 billion yuan, and the book value of liabilities is 9.200 billion yuan. The personnel involved in this transfer will be taken over by the wholly-owned subsidiary in accordance with the principle of “people follow the assets”.
The loan entity of the subject assets transferred this time will be changed from Wanhua Chemical Group Co., Ltd. to a petrochemical company. In order to meet the petrochemical company’s needs for applying for bank loans and credit and carrying out normal business, Wanhua Chemical plans to Increase the joint liability guarantee with a guarantee limit of 12 billion yuan.
It is understood that the Petrochemical Company is a wholly-owned subsidiary of Wanhua Chemical and was established in 2015. As of June 30, 2021, the main financial data of the Petrochemical Company: total assets of 16.668 billion yuan and net assets of 5.655 billion yuan. billion, the main business income in the first half of the year was 22.730 billion yuan, and the net profit was 2.801 billion yuan.
Wanhua stated that this transfer of assets is based on the needs of the overall development strategy, integrating internal resources, in order to improve the efficiency of asset operations, create a unique petrochemical business industry cluster, extend the industrial chain downwards, and achieve integration. In order to optimize chemical advantages and resource allocation, Wanhua Chemical will transfer assets related to the ethylene industry chain to a petrochemical company, which will assume the production, operation and sales functions of petrochemical products.
Wanhua Fujian 800,000-ton PVC Project Environmental Impact Assessment
On July 29, the Fuqing Municipal People’s Government website released the Fuzhou Jiangyin Port City Economic Zone Management Committee The meeting will publish the environmental impact report (full version) and public participation instructions of Wanhua Chemical (Fujian) Co., Ltd.’s annual output of 800,000 tons of PVC project.
Project construction background: Wanhua Chemical (Fujian) Co., Ltd. plans to build a new 400,000 tons/year MDI and 250,000 tons/year TDI projects. A large amount of by-product hydrogen chloride is produced during the production process of the MDI/TDI project. In order to digest this part of the by-product hydrogen chloride and improve the comprehensive utilization rate of resources, Wanhua Fujian proposed to build 800,000 supporting facilities. tons/year PVC production device, using the by-produced HCl to manufacture polyvinyl chloride, forming the idea of comprehensive recycling of chlorine resources.
Project overview: The annual output of 800,000 tons of PVC project is located in Fuqing, Fujian Province The western area of Jiangyin Port City Economic Zone, Jiangyin Town, has a total investment of 4.632 billion yuan. The total equipment area is 183,451m2, of which the first phase covers an area of 91,491m2. It is an important link in the Wanhua Fujian MDI/TDI Industrial Park. The project is constructed in two phases. , the first and second phases will build 400,000 tons/year VCM and PVC devices and supporting facilities respectively.
Project construction content: The main product scale of the project is VCM 800,000 t/a and PVC 800,000 t/ a. The by-product 25%wt hydrochloric acid is 75,200 t/a, and a new VCM device and PVC device are built, and it is also equipped with an EDC tank farm, a VCM tank farm, a freezing station, a low-temperature warehouse, a PVC packaging plant, a VCM/PVC device substation and cabinets Interval and other public auxiliary facilities.
Project progress:
On June 15, 2021, Wanhua Chemical (Fujian) Co., Ltd. issued the environmental impact assessment information of the 800,000-ton PVC project annually. Second announcement.
On the morning of May 17, 2021, China Chengda Engineering Co., Ltd. and Wanhua Chemical Group Co., Ltd. held an annual production 80 Signing ceremony of the EPC general contracting project for the first phase of the 10,000-ton PVC project.
On March 15, 2021, Wanhua Chemical (Fujian) Co., Ltd. conducted its first environmental impact assessment of the 800,000-ton PVC project per year. Announcement.</p
