On April 24, Xinjiang Tianye released its 2020 annual report. The report showed that the company achieved revenue of 8.993 billion yuan in 2020, a year-on-year increase of 5.21%; net profit attributable to shareholders of listed companies was 887 million yuan, a year-on-year increase of 63.01% . In the first quarter report of 2021, Xinjiang Tianye achieved revenue of 2.510 billion yuan, a year-on-year increase of 62.93%; net profit was 466 million yuan, a year-on-year increase of 1553.81%.
In addition, Xinjiang Tianye also announced a profit distribution plan for 2020: Based on the total share capital of 1.42 billion shares, a cash dividend of 1 yuan (tax included) will be distributed to all shareholders for every 10 shares ), distributing a total of 142 million yuan in cash dividends. It is worth noting that in order to actively reward investors and guide investors to establish long-term investment and rational investment principles, Xinjiang Tianye has also released a shareholder return plan for the next three years (2021-2023).
Xinjiang Tianye’s performance in 2020 and the first quarter of 2021 is outstanding, thanks to the completion of the acquisition of Tianneng Chemical and Tianwei Cement, its asset scale, operating income and overall Profitability levels increased significantly. Affected by the epidemic in the first half of 2020, the market demand for PVC paste resin gloves, anti-epidemic supplies, and the combined effects of factors such as the sharp increase in prices of paste resin, polyvinyl chloride and other products in the third and fourth quarters, the company’s operating profit and net profit achieved substantial growth. In addition, Xinjiang Tianye has continued to pay dividends in recent years, reflecting the company’s abundant cash flow and relatively stable financial position.
Integrated industrial advantages promote enterprise development and efficiency improvement
Report During the period, Xinjiang Tianye achieved a double increase in revenue and net profit. On the one hand, due to the persistence of the new coronavirus pneumonia epidemic, the demand for PVC paste resin gloves for epidemic prevention products remained at a high level. The high-load production of glove manufacturers promoted the demand for PVC paste resin gloves. The demand for resin glove materials has increased, and the price of PVC paste resin glove materials has increased strongly. On the other hand, it is attributed to Xinjiang Tianye’s active use of capital operations to support industrial operations and its strategic layout of continuously enriching the company’s business and product structure.
In 2020, Xinjiang Tianye completed the asset restructuring of 100% equity of Tianneng Chemical and Tianwei Cement. After the reorganization was completed, the company built a complete integrated industrial linkage green and environmentally friendly circular economy industry chain of “self-produced electricity → calcium carbide → polyvinyl chloride resin and by-products → cement production from calcium carbide slag and other wastes”, forming a 650,000-ton PVC (including 450,000 tons of ordinary PVC, 100,000 tons of special PVC, and 100,000 tons of PVC paste resin), 470,000 tons of ion membrane caustic soda, and 1.34 million tons of calcium carbide production capacity. It also has 2×300MW and 2×330MW self-owned thermal power stations and With a scale of 4.05 million tons of new dry process cement production and waste heat utilization production line equipment, it has become the domestic calcium carbide acetylene process polyvinyl chloride manufacturer with complete supporting facilities for chlor-alkali chemical industrialization and the largest variety of products. The scale effect is beginning to show.
In recent years, Xinjiang Tianye has also been unswervingly developing its core chemical industry and divesting non-main businesses. The chlor-alkali chemical industry and syngas downstream diversified products complement each other’s advantages, achieving product diversification in the industrial chain and improving the company’s competitiveness. The asset restructuring measures in the past year have not only enriched Xinjiang Tianye’s product varieties, but also exerted synergy and scale effects with the original industry, further enhancing the company’s competitiveness in the chlor-alkali industry.
From the perspective of technological innovation and R&D projects that support the sustainable development of enterprises, Tianneng Chemical, Tianwei Chemical, Tianwei Cement, and Tianneng Cement have all been recognized as national high-tech technology companies. Xinjiang Tianye revised 6 corporate standards that year and drafted and released 1 corporate standard. In November 2020, Tianwei Chemical successfully passed the third-party certification of the “Enterprise Intellectual Property Management Standards”.
Industry analysts believe that the concentration of my country’s PVC industry has further increased in recent years, and advantageous chlor-alkali companies have achieved the extension of the industrial chain and location through acquisitions, mergers, reorganizations, joint ventures and other forms. complement each other to enhance its scale advantage and industry competitiveness. The chemical industry is expected to see a round of supply contraction due to supply-side reform, environmental protection inspections, and safety rectification. The production capacity of the chlor-alkali chemical industry will also be concentrated in high-quality parks and leading companies. Among them, high-quality companies with advanced production technology and strong cost control capabilities will Enterprises will usher in a new round of development opportunities.
Continue to build an operating model driven by both capital operation
and industrial operation
In 2021, Xinjiang Tianye’s production and operation goals are: to improve the economic quality and efficiency of the enterprise, to comprehensively achieve new breakthroughs in production and operation, and to achieve a steady increase in operating income and operating profit compared with the previous year. Establish the chlor-alkali chemical industry as the main line, keep up with new industrial development policies, achieve product diversification in the industrial chain, further transform the product sales model and technical service model of the agricultural water-saving industry, strive to improve the fundamentals of Tianye water-saving, and enhance the company Competitive strength business plan. Establish core business advantages by continuing to build an operating model driven by capital operations and industrial operations.
In recent years, Xinjiang Tianye and its controlling shareholders have made great achievements in innovation and transformation, freight forwarding logistics and scale advantages, and integrated and linked green and environmentally friendly circular economy industry chains. Advantages, agricultural water savingRemarkable results have been achieved in terms of technological innovation advantages and other aspects. The company and its controlling shareholder jointly invested in the Tianye Huihe 1 million tons/year synthesis gas to low-carbon alcohol first-phase 600,000 tons/year ethylene glycol project. Currently, all production lines have been opened. According to the test run and production increase, it is expected to complete the rectification before June 2021, reach the production standard in the second half of 2021, and transfer to formal production.
In March this year, Xinjiang Tianye and Donghua Technology signed an agreement in Shihezi, Xinjiang to jointly invest in and construct the polybutylene adipate/terephthalate (PBAT) project . The overall project plan is 500,000 tons/year. The first phase of the 100,000 tons/year PBAT project has met the construction conditions in March and the construction period is expected to be one year. Xinjiang Tianye said that new chemical materials such as degradable plastics have increasingly become the leading direction for high-quality development of the industry. The project will give full play to the company and its controlling shareholder’s production experience, performance and management capabilities in calcium carbide, BDO, and ethylene glycol. Donghua Technology’s experience, performance and technical strength advantages in engineering device amplification and contract construction have opened up new business areas for the healthy development of both parties.
Industry insiders believe that polyvinyl chloride resin (PVC), paste resin, caustic soda and other chemical products are the basic raw material industries, and the growth of chlor-alkali chemical product output over the years has maintained a high correlation with GDP growth. . With the release of domestic GDP in the first quarter, economic expectations have further improved. It is expected that the domestic economy will maintain a stable and progressive trend in 2021, driving steady growth in demand from the chlor-alkali chemical industry from terminal demand. In the future, chlor-alkali companies with strong competitiveness will continue to carry out cross-regional and cross-ownership reforms and reorganizations to promote the integrated development of upstream and downstream industries. Therefore, the market-oriented operation of corporate mergers and reorganizations will continue, and there will still be room for further improvement in the concentration of the PVC industry.
As a leading company in the chlor-alkali industry, Xinjiang Tianye said that in the future, the company will continue to give full play to its main advantages in the integrated industry-linked green and environmentally friendly circular economy industry chain, and continue to implement major Reorganize assets, expand and optimize the PVC product structure, continue to promote the divestiture of non-main business assets, develop in coordination with Tianye Group, and jointly promote the company’s industrial structure adjustment. And relying on the industrial advantages, technological advantages and chemical industrial park advantages of Tianye Group, we will establish a development pattern with chemical industry as the main line and product diversification. </p
