In 2020, the net worth of some Zhejiang businessmen has risen. Behind this is the rise in the stock prices of listed companies, and their market value has continuously crossed the threshold of tens of billions or even hundreds of billions.
Although 2020 ended with a lot of complaints, the wealth of entrepreneurs has not stopped growing. In the billionaire list compiled by Forbes based on the closing stock price on December 11, 2020, the wealth growth figure of China’s rich reached US$750 billion. The “2020 Hurun Rich List” also shows that the number of “2 billion entrepreneurs” on the list has increased by 32% compared with 2019, the number of “100 billion entrepreneurs” has doubled, and the total wealth of those on the list has increased by 10 trillion yuan. Set a record since the release of the list.
2020 is also a fruitful year for some Zhejiang businessmen. Behind the rise in net worth is the rise in stock prices of listed companies, with market values constantly crossing the threshold of tens of billions or even hundreds of billions.
Aside from the topical Zhejiang businessmen such as Jack Ma, Zhong Suisui, and Huang Zheng, there is no shortage of “people with a lot of food” in the net worth list of actual controllers of Zhejiang A-share listed companies. In Zhejiang A-shares In the list of net worth of actual controllers of listed companies, Rongsheng Petrochemical occupies the top spot, with the net worth of actual controller Li Shuirong exceeding 80 billion yuan. From this wealthy actual controller, we can also see a glimpse of future investment trends in the chemical fiber industry.
High market value incubates high net worth, Zhejiang Petrochemical becomes the “golden rice bowl” of Rongsheng Petrochemical
In the first three quarters of 2020, Rongsheng Petrochemical’s net profit was 5.652 billion yuan, a year-on-year increase of 206.17%. The hero behind the profit was the commissioning of the “40 million tons/year refining and chemical integration project”.
This project comes from Zhejiang Petrochemical Co., Ltd. (“Zhejiang Petrochemical”) in which Rongsheng Petrochemical holds 51% of the shares. Rongsheng Petrochemical issued an announcement on December 31, 2019, 4000 The first phase of the 10,000 tons/year refining and chemical integrated project has been fully put into trial operation, and the whole process has been opened up, ushering in a bumper harvest in 2020: In the first three quarters of 2020, Zhejiang Petrochemical Phase I contributed 3.88 billion yuan to Rongsheng Petrochemical’s net profit , is expected to contribute a net profit of 5.66 billion yuan for the whole year.
In 2018, Li Shuirong, chairman of Rongsheng Petrochemical, said that once this project is completed, the scale of Rongsheng Petrochemical will double. As he wished, in 2020, the market value of Rongsheng Petrochemical increased by 125% year-on-year, and Li Shuirong’s net worth increased by 46.088 billion yuan compared with the end of 2019.
On November 3, 2020, Rongsheng Petrochemical issued an announcement on the commissioning of the 40 million tons/year refining and chemical integration project (Phase II). The first batch of units of the Phase II project (normal Pressure reduction and related public engineering equipment, etc.) were put into operation on November 1. With the stable operation of the first phase and the full commissioning of the second phase, it is expected that Zhejiang Petrochemical’s net profit contribution to Rongsheng Petrochemical in 2021 is expected to exceed 10 billion yuan.
Rivals have become partners, and they have a say in global pricing
Zhejiang private enterprises are building a super map of the entire petrochemical industry chain.
Standing on the viewing platform of Yushan Island in Daishan County, Zhoushan, you can see a giant petrochemical project rising: the flat land between the hills and the coastline is lined with giant petrochemical production plants Facilities, gantry cranes and prefabricated houses, more than 60,000 people are working intensively on production and construction.
Zhoushan green petrochemical base rises from the ground.
This is the Zhejiang Petrochemical Refining and Chemical Integration Project with a planned total scale of 40 million tons of oil refining per year, which is expected to drive 600 billion yuan per year to the upper and lower industrial chains. It is not only the single industry project under construction with the largest investment in the world, but also the largest investment project by a domestic private enterprise so far – Rongsheng Petrochemical is the holding parent company of the investor.
Li Shuirong, chairman of Zhejiang Rongsheng Holding Group Co., Ltd., has been working hard for this scene for nearly 20 years. “The project is in line with the national strategy and allows private enterprises to engage in large-scale oil refining. Zhejiang private enterprises have the strength to do it , we have already prepared and planned.”
From the production of polyester chemical fiber cloth at the beginning of its establishment to the involvement of polyester spinning, the launch of polyester direct spinning in 2002, and then to the refining and chemical project in Zhoushan , Rongsheng Holdings moves up the industrial chain.
“The development of every industrial link will find upstream business opportunities.” Lu Ming, director of the office of Rongsheng Holdings, said that as one develops upstream, the thresholds for funds, technology, policies, etc. are also constantly increasing, ” We decided to join forces with our main competitors.”
The “opponent” mentioned by Lu Ming mainly refers to Hengyi Group, which is also headquartered in Xiaoshan District, Hangzhou. The collaboration between the two parties on the PTA project has become an industry legend.
PTA, purified terephthalic acid, is mainly used to produce polyester fiber (polyester), polyester bottle flakes and polyester film. It is an important intermediate product in the entire petrochemical industry chain.
“We are both leading companies in Xiaoshan District and are familiar with each other. We are also facing the problem of upward breakthroughs in the industrial chain.” Lu Ming revealed that for many years, PTA has mainly relied on imports, and the two companies are responsible for The two found opportunities for cooperation during their inspection abroad and hit it off immediately. Since 2003, the two parties have worked together to build PTA projects in Ningbo, Dalian, and Hainan Yangpu Port, with a total production capacity of 13.5 million tons, ranking first in the world. After the Zhejiang Yisheng New Materials PTA project under construction is put into operation, the total PTA production capacity is planned to be in 2000.� tons and above will further enhance the “discourse power” in global PTA pricing.
Continuously expand the industry’s “circle of friends” and achieve win-win development for enterprises. In 2012, Hengyi cooperated with Sinopec to build a caprolactam project, forming a unique “polyester + nylon” dual industry chain-driven model among domestic peers. “Sinopec has a lot to learn in terms of technology and institutional norms, and private enterprises can also take advantage of fast decision-making and flexible operating mechanisms.” He Bangyang, secretary of the Party Committee of Hengyi Group, said.
This advantage has become a magic weapon for the development of petrochemical private enterprises.
In Zhejiang, the first phase of the Yisheng Petrochemical PTA project took 22 months to complete and reached full capacity within one week of being put into operation.
Construction on desert islands to establish “Chinese standards” for global petrochemicals
With the increase in industry scale and the improvement of the industry chain, companies are resisting risks Ability increases accordingly.
In the first three quarters of 2020, Hengyi Petrochemical achieved revenue of 61.321 billion yuan and net profit attributable to the parent company of 3.057 billion yuan, a year-on-year increase of 38.09%.
“There are only downstream, and a large part of product profits are ‘eaten’ by the upstream.” Luo Dan, general manager of the Investment Management Department of Hengyi Group, said that opening up the entire upstream and downstream industry chain can effectively respond to the market fluctuations, ensuring the supply of high-quality raw materials and reducing operational risks, which is particularly critical during the epidemic.
Nowadays, petrochemical companies have begun to take the initiative and set their sights on development around the world
Every Tuesday, Royal Brunei Airlines will fly a plane to Hangzhou . For several years, tens of thousands of workers have taken this flight to Pulau Muara in Brunei Darussalam. This is a key project of the “One Belt and One Road” – the Hengyi Brunei Damora Island Petrochemical Project is known as the flagship cooperation project between China and Brunei, with an investment of US$3.45 billion in the first phase of the project.
It took two and a half years from the laying of the first pile to the completion of the project (project handover), and only two and a half months from the project handover to the successful commissioning of materials, creating a multi-million dollar petrochemical industry A new record for a ton-scale refinery with the shortest commissioning time, the most stable process, and the best safety and environmental performance.
“This project fully implements Chinese standards from design, manufacturing, construction to management, and the construction and production process achieves ‘zero fire, zero pollution, and zero harm’.” Rodin said proudly.
Aiming at the commanding heights of future competition in the global industry, petrochemical companies are accelerating their layout.
Rongsheng Group set up a branch in Singapore to arrange bulk commodity procurement and export of some products to enter the international market; Hengyi and Zhejiang University jointly established the Global Future Advanced Technology Research Institute to build the world A research and development base for key common technologies in level-one refining and chemical integration and high-end chemical products.
Hengyi Brunei Da Muara Island Petrochemical Project
Create opportunities in crises and open up new opportunities in changing situations. Leading petrochemical companies, represented by Rongsheng Petrochemical, have extended from mid- to low-end links to mid-to-high-end links, until they have opened up the entire industrial chain from refining to new materials; from starting in villages and towns to nationwide deployment and moving towards the world, they have rewritten the world’s petrochemical industry. The industrial landscape has also become a strong support for the new dual-cycle development pattern.
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