Dongfang Shenghong disclosed its 2019 annual report on the evening of April 8. During the reporting period, the company The operating income was 24.888 billion yuan, a year-on-year increase of 6.98%; the net profit attributable to shareholders of listed companies was 1.614 billion yuan, a year-on-year increase of 67.18%; the basic earnings per share was 0.4 yuan, a year-on-year increase of 33.33%. The company plans to distribute cash of 1 yuan (including tax) for every 10 shares.
Multi-business segments are parallel and profitable, and the main business is developing strongly
Dongfang Shenghong’s main business is the research and development, production and sales of civilian polyester filament as well as the production of PTA and thermoelectricity , sales, etc. During the reporting period, the company carried out vertical integration of the industrial chain and formed a “PTA-polyester chemical fiber” business structure.
During the reporting period, the company’s chemical fiber, petrochemical, and thermoelectric segment revenue were 18.491 billion yuan, 4.298 billion yuan, and 877 million yuan respectively, of which the chemical fiber segment revenue increased by 5.79% year-on-year. Relying on the advantages of high-end differentiated production and product quality, the polyester filament business has achieved a year-on-year growth of 19.16% in product sales. Dongfang Shenghong said that the competitiveness of the company’s civilian polyester filament products has improved rapidly and is currently at the forefront of the domestic civilian polyester filament industry. In particular, functional and differentiated civilian polyester filaments have strong competitiveness in the market.
At the same time, the company continued to increase investment in independent research and development and technological innovation in 2019, with R&D investment of approximately 750 million yuan, a year-on-year increase of 6.46%. The company also introduced Su Zhen Biotechnology’s bio-based PDO and new bio-based fiber high-tech production technology through acquisitions, and achieved significant breakthroughs in various technological innovations. Dongfang Shenghong said that in the future, it will continue to enhance the market competitiveness of the chemical fiber industry through differentiation strategies, thereby enhancing the company’s sustainable profitability.
Integration benefits are evident and the construction of refining and chemical integration continues to be promoted
During the reporting period, Dongfang Shenghong carried out vertical integration of the industrial chain and acquired Shenghong Refining and Chemical and Honggang Petrochemical. 100% equity to form a complete new high-end textile industry chain structure of “crude oil refining-PX/ethylene glycol-PTA-polyester-chemical fiber”. In this regard, Dongfang Shenghong said that the injection of Shenghong Refining and Honggang Petrochemical will give the company greater vitality and expand more space for its subsequent development, and vertical integration will promote the company to enter the collaborative development among refining, petrochemicals and chemical fiber. A new stage and a new pattern.
The annual report shows that the main production body of the company’s polyester chemical fiber business segment is Guowang High-tech. Currently, Guowang High-tech has a differentiated chemical fiber production capacity of 2.1 million tons/year, and the product differentiation rate reaches 90%. There are more than 100 types of subdivided products, mainly high-end products DTY. In 2019, Guowang Hi-Tech achieved operating income of 11.641 billion yuan and net profit of 1.479 billion yuan. The main production body of the PTA business segment is Honggang Petrochemical, which currently has 1.5 million tons/year PTA production capacity and 2.4 million tons/year PTA production capacity under construction.
In addition, the company’s refining and chemical business segment is implemented by Shenghong Refining and Chemical. The Shenghong Refining and Chemical Integration Project is currently under construction, with a project scale of 16 million tons/year of oil refining and 2.8 million tons/year of refining. Xylene, 1.1 million tons/year ethylene and downstream derivatives, supporting 300,000 tons crude oil terminal, four 50,000 tons liquid chemical terminals, etc. The company expects to be put into operation by the end of 2021.
Dongfang Shenghong said that the company will continue to comprehensively promote project construction and construction based on the principles of high standards, high quality and high efficiency. At the same time, the company actively established government-guided industrial funds, opened up private equity financing channels, successfully issued green corporate bonds, and formed syndicated loans to protect the construction funds of the company’s Shenghong refining and chemical integration project. It is understood that Dongfang Shenghong’s application for a non-public issuance of A shares has been approved by the China Securities Regulatory Commission.
It is reported that after the project is fully completed, the paraxylene (PX) produced by Shenghong Refining and Chemical Co., Ltd. will be directly supplied to Honggang Petrochemical Co., Ltd. to produce purified terephthalic acid (PTA). The PTA produced by Honggang Petrochemical Co., Ltd. The ethylene glycol (MEG) produced by Shenghong Refinery will be further provided to Guowang Hi-Tech to produce differentiated chemical fibers (POY, FDY, DTY, etc.), forming a full industry chain business from “a drop of oil” to “a thread” business. </p
