Hengli Group is a Fortune 500 company, a world petrochemical giant, and a world textile giant headquartered in Suzhou. It is also the largest private enterprise in Suzhou. The popularity of Hengli Group is much lower than that of Huawei, Alibaba, and Evergrande, but Hengli is not weak in strength and is a world leader in the textile and petrochemical fields.
On September 28, among the latest top 500 Chinese enterprises reported by the central financial and economic official media Economic Daily, Hengli Group ranked 28th in the country. Almost all of the top 30 companies are state-owned enterprises. As a private enterprise, Hengli’s ability to enter the top 30 shows how strong it is. Hengli Group has surpassed Alibaba, China’s largest e-commerce company, and Country Garden, the world’s largest real estate company. Large banks including China Merchants Bank and Bank of Communications are also behind Hengli. I have to give Hengli a thumbs up. A private enterprise in a prefecture-level city has achieved this. It is not easy to reach such a height.
Textile Queen Fan Hongwei is on the Forbes list of best CEOs. Hengli Group earned 5.5 billion in the first half of the year!
On August 11, “Forbes” magazine released the list of China’s Best CEOs in 2020. This list lists a total of 50 CEOs of Chinese companies, ranking among the top three They are Zhang Yong, chairman of the board of directors of Alibaba, Ma Huateng of Tencent Holdings and Ma Mingzhe of Ping An of China.
The average age of the 50 CEOs on the list is 54 years old, and the average market value of the companies they manage is 365.4 billion yuan. One of them comes from our chemical fiber industry. She is Fan Hongwei of Hengli Petrochemical, ranked 35th on the list.
Fan Hongwei was born in Wujiang, Suzhou. She is 4 years older than her husband Chen Jianhua. The two run Hengli Group together.
Fan Hongwei is the chairman and general manager of the A-share listed company Hengli Co., Ltd., and Chen Jianhua is the chairman and president of Hengli Group. The couple have been deeply involved in the chemical fiber industry for many years.
Hengli Group was founded in 1994. It is mainly engaged in four major sectors: petrochemicals, polyester new materials, real estate and weaving. Thermoelectricity, Enterprises with diversified development such as machinery, finance, and hotels. The group owns one of the PTA factories with the largest monomer production capacity in the world, one of the largest super-bright yarn and industrial yarn production bases in the world, and one of the largest weaving companies in the world.
Fan Hongwei said: “For Hengli Group, it is an established strategy and development goal to create a vertical integration of a complete industrial chain from fiber manufacturing to petrochemicals.”
Due to the downturn in the entire capital market this year, the operations of listed companies this year are still not optimistic. The market value of Hengli Holdings, owned by Fan Hongwei and her husband Chen Jianhua, has continued to soar. In the latest 2020 Fortune Global 500 list, Hengli Group has a total revenue of US$80588.3 million and a profit of US$2076.8 million, ranking among the top 500 companies in the world. No. 107.
The group’s total revenue last year was 556.7 billion yuan, ranking 107th among the world’s top 500 companies. This allows Fan Hongwei to sit back and watch other rich people “move their stools and sit back”. She catches up with a bunch of rich people in the ranking without moving and becomes the Queen of Chemical Fibers.
Net profit for the first half of the year was 5.5 billion yuan! Hengli Petrochemical took off against the trend, why?
Hengli Petrochemical disclosed its semi-annual report on August 13. The company’s operating income in the first half of 2020 was 67.358 billion yuan, a year-on-year increase of 59.11%; Net profit attributable to shareholders of listed companies was 5.517 billion yuan, a year-on-year increase of 37.20%. Basic earnings per share were 0.79 yuan.
Recently, major listed companies around the world have announced their second quarter performance reports. Due to the COVID-19 epidemic, many chemical companies have unsurprisingly experienced reduced sales and declining profits. Under such circumstances, Hengli Petrochemical has bucked the trend and achieved rapid growth in operating scale and substantial improvement in profitability. What unique competitive advantages does Hengli Petrochemical have?
Hengli Petrochemical stated in its semi-annual report that this is due to the implementation of vertical and horizontal integrated development of the entire industry chain, relying on the The world-class “Refining and Chemical Integration Project” has achieved synergistic integration capabilities from “crude oil – aromatics, olefins – PTA, ethylene glycol – polyester chemical fiber”, relying on production capacity scale, production technology, technology research and development and technology that exceed the industry average level. The long-term accumulated advantages in operation quality and the cost advantage of complete supporting facilities in power, energy, transportation, terminals, tank farms and other bases have achieved excess profitability that exceeds the industry average, and also built a deeper cost and market in the industry. and efficiency moat.
1. Development of the entire industry chain
Hengli Petrochemical is a domestic The industry leader that is the earliest and fastest to implement the strategic development of the entire polyester chemical fiber industry chain, actively promotes the coordinated and balanced development of major business sectors, vigorously expands upstream and downstream high-end production capacity, and is committed to creating a “crude oil-aromatics” enterprise.��, olefin-PTA, ethylene glycol-polyester-civilian yarn, industrial yarn, polyester film, engineering plastics” a world-class integrated and collaborative listing platform development model for the entire industry chain.
Hengli’s 20 million tons/year refining and chemical integration project has been fully put into operation, achieving a strategic breakthrough in the company’s key production capacity of refining and aromatics, and becoming the first company in the industry to own the “crude oil-PX-PTA” – An enterprise that integrates the “polyester” industrial chain. In addition, the rapidly advancing new production capacities of ethylene, PTA, polyester new materials and other new materials have been put into operation successively, building an integrated industry, production capacity structure quality, equipment scale cost, technology and process accumulation, and project The strategic leading advantage of the speed of production and the development of the listing platform.
2. Scale + technology + supporting equipment
Hengli Petrochemical has laid out plans in the upstream, midstream and downstream of the entire polyester chemical fiber industry chain based on “large-scale equipment, large-scale production capacity, structural integration, advanced technology, green environmental protection, and complete supporting facilities”. The characteristic high-quality and efficient production capacity structure is matched with public works. Whether it is a single device, total production capacity or production technology, it is at the leading processing scale and technical level in the industry, ensuring savings in unit investment costs, material and energy consumption, unit processing costs, and products. Scale advantages, operational efficiency and quality performance in terms of delivery time, product quality and diversification, coupled with complete industrial supporting capabilities in power, energy, ports, terminals, tank farms, storage and transportation, etc., in comprehensive cost savings, services The comprehensive operational advantages in terms of quality performance and operational efficiency improvement are outstanding.
Coal chemical industry, oil refining and chemical industry in the industrial park complement each other and rely on each other, forming efficient business and cost synergy, refining The chemical business is equipped with the largest coal-based hydrogen production unit in the country, which produces low-cost pure hydrogen, methanol, acetic acid, synthesis gas and other coal chemical products. Coupled with the advantages of raw material and product storage and transportation systems, the project’s operational flexibility and flexibility are greatly enhanced. Comprehensive cost advantage.
In the first half of the year, Hengli Petrochemical completed the commissioning of the world’s largest 1.5 million tons/year ethylene project and all its downstream chemical plants, further opening up the ” Olefin-ethylene glycol-polyester” industrial chain.
In addition, Hengli Petrochemical accelerated the implementation of production capacity construction in the mid- and downstream PTA and polyester links. During the reporting period, the company’s two lines The construction of a total of 5 million tons of new PTA production capacity is progressing smoothly. Among them, PTA-4 Line was successfully put into operation in January this year and started commissioning work. It was completed in May this year and officially transferred to commercial operation; PTA-5 Line The project construction and installation work has been completed, and the material input work started in June this year. It is currently under debugging and is expected to be officially put into production in the second half of this year.
As of now, Hengli Petrochemical It has 4 PTA production lines with a total annual production capacity of 9.1 million tons of PTA, and has built and is debugging a new production line of 2.5 million tons. Hengli Petrochemical is currently the listed company with the largest PTA equity production capacity and the largest unit under construction in China. The company’s total PTA production capacity will reach an annual output of 11.6 million tons in the second half of this year, making it the PTA production supplier with the largest production capacity, the most advanced technology and the most obvious cost advantages in the world.
3. High-end R&D drive
What Hengli Petrochemical is doing A development path that emphasizes market differentiation, high-end technology, device scale, and business integration. It has a market-technology linkage innovation mechanism formed through long-term accumulation and exploration. It can quickly respond to the latest changes in market consumer demand and has stable mid- and high-end customers. Resource reserves.
The four major polyester business entities Hengli Chemical Fiber, Deli Chemical Fiber, Hengke New Materials, and Kanghui Petrochemical are all national high-tech enterprises. Through meticulous management of the production process and With the continuous improvement of technical processes, independent research and development has accumulated a series of differentiated and functional products, and has mastered the production patents of a large number of products, which have been widely recognized by the market. It is currently the only company in China that can produce 7D FDY products.
In addition, Hengli Petrochemical regards “intelligent interconnection” as an important entry point for industrial upgrading and transformation, through “machine replacement”, “automatic replacement of machinery”, “complete set replacement of single units” ”, “smart exchange for digital” and other methods, gradually transform the development model of enterprises from “demographic dividend” to “technological dividend”. At the same time, a multi-disciplinary and multi-professional scientific and technological research team has been formed including refining, petrochemicals, polymer materials, chemical fiber engineering, textile engineering, electrical engineering, etc. </p
