Recently, Rongsheng Petrochemical released its first half annual report for 2021. The announcement showed that the company’s half-year operating income was 84.42 billion yuan, a year-on-year increase of 67.9%, and the net profit attributable to the parent company was 6.57 billion yuan, a year-on-year increase of 104.7%.
For performance growth, Rongsheng Petrochemical said that the increase in production capacity and the expansion of the price difference of raw material products have contributed. During the reporting period, various projects of the “40 million tons/year refining and chemical integration project” invested and constructed by Rongsheng Petrochemical in Zhoushan Green Petrochemical Base were progressing smoothly. It is reported that the first-phase project of Zhejiang Petrochemical has achieved stable full-load operation, and the first batch of units of the second-phase project was put into operation in November last year. The overall output of the refining and chemical project has increased. At present, the atmospheric and vacuum units, ethylene units and some downstream units of the second phase are in the trial operation stage, and the trial operation of the remaining units is progressing steadily. Based on the operation experience of the first phase of the project, the second phase is expected to be fully operational in 2021. Compared with the first phase, the second phase of Zhejiang Petrochemical has a smaller proportion of refined oil products, and the downstream structural varieties of ethylene are more abundant than the first phase, including C5/C9 deep processing projects, such as EVA, ABS, polyether polyols, butadiene rubber, butadiene rubber, etc. Chemicals with higher added value such as styrene rubber. As the second phase of Zhejiang Petrochemical’s production capacity is gradually put into operation, the company’s performance has significant room for profit growth. In addition, the recovery of the crude oil-PX-PTA-polyester and crude oil-chemical industry chains has also increased the gross profit of the company’s products.
The three major development stages of “evolutionary history”
Public information shows that Rongsheng Petrochemical started in the downstream textile business and gradually Expanding into upstream PTA, PX, and refining has formed the current business layout of the entire refining-chemical fiber industry chain. With the first phase of Zhejiang Petrochemical put into operation in December 2019, Rongsheng Petrochemical’s “crude oil-aromatics (PX), olefins-PTA, MEG-polyester-spinning-texturing” integrated industrial chain was completed. The “evolutionary history” of Rongsheng Petrochemical can be called a transformation model for private chemical fiber and petrochemical enterprises. Every major development step of Rongsheng Petrochemical comes from its upstream expansion.
The first stage:
Yisheng Petrochemical PTA has continued to expand since 2005. During the period from 2008 to 2011, when PTA was most profitable, PTA continued to create excess value. After 2012, PTA significantly expanded its production, which led to the weakening of profits in the PTA segment. By 2015, most PTA companies were on the verge of profit and loss.
Second stage:
In 2015, Zhongjin Petrochemical, a subsidiary of Rongsheng Petrochemical, was put into production, which meant that Rongsheng Petrochemical once again expanded into the upstream PX of PTA raw materials. . After CICC Petrochemical went into production, Rongsheng Petrochemical became an important domestic PX supplier in addition to two barrels of oil. During the 2015 domestic stock market crash, Rongsheng Petrochemical relied on the high profits of PX to continue to increase its net profit attributable to the parent company, driving the stock price Bucking the trend higher.
The third stage:
In December 2019, Zhejiang Petrochemical was put into operation. Rongsheng Petrochemical once again completed its expansion from PX to upstream refining and became a domestic private company. The backbone of the great refining industry.
In addition, with the production of Yisheng Hua 1 million tons/year, Hainan Yisheng 500,000 tons/year bottle-grade slices, Zhongjin Petrochemical 200,000 tons/year xylene and Yongsheng Technology 250,000 tons/year poly The ester film expansion projects have been put into production one after another, as well as the continuous advancement of the Zhejiang Petrochemical Phase II project, Yisheng New Materials PTA project, Yongsheng Technology polyester film expansion project, Shengyuan Phase II project, etc. Rongsheng Petrochemical will enter a stage of rapid development in the future. It will become a leading enterprise in the domestic private refining and chemical industry.
Vertical and horizontal two-way cross-shaped development strategy
Rongsheng Petrochemical has always adhered to the vertical and horizontal two-way cross-shaped development strategy, vertically extending upstream to expand the industry chain, Rongsheng Petrochemical Petrochemical has gradually grown from a weaving factory to a private petrochemical and chemical fiber giant, becoming the first listed company in China with an integrated industrial chain of “crude oil – aromatics (PX), olefins – PTA, MEG – polyester – spinning, film, and bottle flakes” company. Horizontally, we continue to develop new chemical fiber products to improve the differentiation rate, and our comprehensive energy consumption is at the advanced level in the industry.
Petrochemical sector:
Rongsheng Petrochemical’s PX production capacity in 2020 is 5.6 million tons/year (including 4 million tons/year of Zhejiang Petrochemical and Zhongjin Petrochemical 1.6 million tons/year), accounting for approximately 21.5% of the country’s total production capacity; pure benzene production capacity is 1.67 million tons/year (Zhejiang Petrochemical 1.27 million tons/year, Zhongjin Petrochemical 400,000 tons/year), accounting for approximately 10.3% of domestic production capacity %; acrylonitrile production capacity is 260,000 tons/year, accounting for approximately 10.4% of domestic production capacity; butadiene production capacity is 200,000 tons/year, accounting for approximately 4% of domestic production capacity; the above products are put into production with the second phase of the Zhejiang Petrochemical Project Production capacity will further increase in the future. The styrene production capacity is 1.2 million tons/year, accounting for about 10% of the domestic production capacity, and is mainly sold externally; the ethylene glycol production capacity is 850,000 tons/year, accounting for about 4.5% of the domestic production capacity, and is mainly used by subsidiaries to produce polyester; The production capacity of ethylene and polypropylene is 750,000 tons/year and 900,000 tons/year respectively, accounting for 3.3% and 3.2% of the domestic production capacity respectively; the polycarbonate production capacity is 260,000 tons/year, accounting for approximately 12.3% of the domestic production capacity; PIA The production capacity is 300,000 tons/year, accounting for 66% of the national production capacity. As one of the leading companies in the PTA industry, Rongsheng Petrochemical has strategically located three major PTA bases in Dalian, Liaoning, Ningbo, Zhejiang, and Yangpu, Hainan along the coastline from north to south. Its controlling and equity-holding PTA production capacity totals approximately 13 million tons, ranking first in the world in terms of scale.
Polyester sector:
China is the world’s largest textile producer and exporter. Rongsheng Petrochemical continues to increase the proportion of differentiated fiber varieties; Accelerate the development of customized products to meet the differentiated and personalized needs of the market. At present, the production scale, raw material consumption and product quality of Rongsheng’s polyester and spinning and texturing supporting projects are at the forefront of domestic peers. The total production capacity is 4.5 million tons per year, and the scale ranks among the top in the country.
Anytime�Zhejiang Petrochemical Phase II project has been put into operation in an orderly manner. Rongsheng Petrochemical will become one of the top five refineries in the world and the largest domestic refinery. In addition, the long-term planning of Zhejiang Petrochemical Phase III and Sinopec Petrochemical refining and chemical projects is expected to create an 80-million-ton world-class refinery. chemical base. In addition, Rongsheng Petrochemical also joined hands with Zhejiang Energy Group to establish Zhejiang Petroleum, which will take the lead in deploying refined oil retail business. According to the plan, Zhejiang Petroleum will invest 60 billion yuan in the future to build a 10 million-ton crude oil storage facility and a refined oil storage and transfer facility with a capacity of 15 million cubic meters. , 1,000 kilometers of oil transportation pipelines, and fuel filling facilities with a capacity of 1 million tons. It is expected to build 700 integrated energy supply stations in 2022 and 1,000 integrated energy supply stations in 2025. </p
