Hengyi Petrochemical, a subsidiary of Hengyi Group, responded to its recent increase in its holdings of Tongkun shares.
On May 26, the Secretary of the Board of Directors of Hengyi Petrochemical responded to investors in the Shenzhen Stock Exchange Interactive Notes When asked, it was stated that the company’s controlling shareholder Zhejiang Hengyi Group Co., Ltd. (hereinafter referred to as “Hengyi Group”) invested in Tongkun Group Co., Ltd. (hereinafter referred to as “Tongkun Shares”) mainly “based on its optimistic expectations for the future development of the polyester industry. , and in order to enhance the core competitiveness of the company’s polyester industry, considering that the valuation of the petrochemical-chemical fiber sector is at a historically low level.”
Tongkun and Hengyi are both giants in the chemical fiber industry. In the 2018 China Chemical Fiber Industry Output Ranking announced at the China Chemical Fiber Technology Conference held in June 2019, Tongkun and Hengyi ranked first and second respectively.
Hengyi Group becomes the top ten shareholders of Tongkun Co., Ltd.
The reporter noticed that in the first quarter report of Tongkun Co., Ltd. in 2020, Hengyi Group became the top ten shareholders in one fell swoop, ranking fifth, with a shareholding of 46.9519 million shares and a shareholding ratio of 2.49%. In the list of major shareholders in Tongkun’s 2019 annual report, Hengyi Group did not appear.
As of the end of the first quarter of 2020, the major shareholder of Tongkun Shares is Zhejiang Tongkun Holding Group Co., Ltd., which holds The ratio is 25.16%, with 464 million shares held and 121 million shares pledged; the second largest shareholder is Jiaxing Shenglong Investment Co., Ltd., with a shareholding ratio of 12.19%, 225 million shares held and 39 million shares pledged; the third largest shareholder Chen Shiliang holds 5.77% of the shares and holds 106 million shares. According to the financial report, the above three shareholders are persons acting in concert.
Tongkun Co., Ltd. is a large-scale joint-stock listed company that invests in petroleum refining and manufactures PTA, polyester and polyester fiber as its main business, with total assets of more than 40 billion yuan. In May 2011, Tongkun Co., Ltd. successfully entered the capital market.
Hengyi Group is a modern large-scale private enterprise specializing in the production of petrochemicals and chemical fiber raw materials. With total assets of nearly 100 billion yuan, it ranks among the “100-billion-dollar army” with an output value. Hengyi Petrochemical, a subsidiary of Hengyi Group, was listed in 2011, and Zheshang Bank, in which Hengyi Group has a stake, was also listed on the Hong Kong Stock Exchange in March 2016.
In the first quarter of 2020, Tongkun Co., Ltd.’s performance declined sharply, achieving operating income of 7.694 billion yuan, a year-on-year decrease of 34.12%, and net profit attributable to the parent company of 428 million yuan, a year-on-year decrease of 17.82% , the net cash flow generated from operating activities was -4.164 billion yuan, a sharp decline of 316.38% year-on-year.
In contrast, Hengyi Petrochemical’s profits rose in the first quarter of 2020. In the first quarter of this year, Hengyi Petrochemical’s operating income was 18.872 billion yuan, a year-on-year decrease of 14.32%. Net profit attributable to the parent company was 811 million yuan, a year-on-year increase of 82.88%. Cash flow from operating activities was 543 million yuan, a year-on-year increase of 612.20%.
Since January 1 this year, the share price of Tongkun shares has stood at 15.05 yuan, and it remained at 15.09 yuan until January 22. Since then, it has been falling, falling to 13.72 yuan on February 28, falling to 11.73 yuan on March 31, and closing on May 26 at 11.64 yuan.
Both Hengyi and Tongkun launched projects in Qinzhou, Guangxi last year
The board secretary of Hengyi Petrochemical said that investment within the industry is conducive to enhancing the market voice. Regardless of production capacity, scale or market share, both (Hengyi and Tongkun) are leading companies in the polyester industry and are in line with their main businesses. The investment logic is conducive to improving the core competitiveness of the main business and market synergy.
The reporter has not found any cooperation projects between Hengyi and Tongkun, but both parties have launched projects in Qinzhou, Guangxi in 2019.
According to Guangxi Daily, on July 7, 2019, the Qinzhou Municipal Government and Hengyi Group signed an investment cooperation agreement for a high-end green chemical and chemical fiber integration project in Nanning.
According to the agreement, Hengyi Group will build a “Belt and Road” cross-regional cooperation and high-end green chemical and chemical fiber integration project for ASEAN in Qinzhou, with a total investment of approximately 45 billion yuan. After completion, it is expected to achieve an annual output value of approximately 50 billion yuan and a tax revenue of approximately 4.5 billion yuan.
More than a month later, Guangxi Daily reported that the Qinzhou Municipal Government and Zhejiang Tongkun Holding Group signed the “Tongkun Qinzhou Beibu Gulf Green Petrochemical Integrated Industrial Base Project Investment Contract” .
According to the investment contract, Tongkun Group will invest approximately 51 billion yuan to build the Beibu Gulf green petrochemical integration in Qinzhou, Guangxi, with an annual output of 2.8 million tons of aromatics and 5 million tons of PTA. Industrial base project. </p
