On the evening of April 19, Hengyi Petrochemical disclosed its 2020 annual report. The report shows that the company achieved operating income of 86.430 billion yuan in 2020, a year-on-year increase of 8.55%; it achieved a net profit of 3.072 billion yuan attributable to the parent company, and plans to distribute 3 yuan for every 10 shares.
As of the end of 2020, the company’s total assets were 92.26 billion yuan, an increase of 7.58% from the beginning of the year; the owner’s equity attributable to shareholders of listed companies was 24.007 billion yuan, an increase of 1.12% from the beginning of the year; The net assets per share of shareholders of listed companies are 6.52 yuan; the weighted average return on net assets is 14.73%; the asset-liability ratio is 67.17%, which is at a lower level compared to peer listed companies, and the asset-liability structure is reasonable.
Affected by the epidemic, Hengyi Petrochemical has been able to achieve stable performance, mainly due to Hengyi’s advantages in the layout of the entire petrochemical industry chain.
It is reported that before the Hengyi Brunei refining and chemical project was put into operation, the polyester fiber and PTA business was the company’s main source of profit. In November 2019, the much-anticipated Brunei Refining and Chemical Phase I project was officially put into operation, and the company’s revenue and profit structure were also adjusted and optimized. In 2020, refining products contributed 18.73% of Hengyi Petrochemical’s revenue, a 554.86% increase from 2019.
As the world’s leading integrated leader in the “refining and chemical fiber” industrial chain, Hengyi Petrochemical maintains strategic focus in 2020, and the key project of “One Belt and One Road” – Hengyi Wen The Lai Refining and Chemical Project operates smoothly, continues high-load production, and its competitive advantage continues to improve; the leading competitive advantage of the PTA business segment is further consolidated, and product profitability remains at the leading level in the industry; the main chemical fiber business focuses on high-quality development, and the level of product differentiation is further enhanced Expansion, profitability increased significantly; at the same time, production became increasingly lean, brand quality continued to improve, management innovation continued to be optimized, and operation quality reached a new level.
2020 is the first year for the Hengyi Brunei project to start construction. Facing pressures from many parties such as the COVID-19 epidemic, the uncertain global economic situation, and plummeting oil prices, Hengyi Brunei has successfully withstood the test. , high load and stable operation throughout the year. The annual report shows that Hengyi Brunei’s refined oil and chemical products sold smoothly in 2020, with 8.0298 million tons of products sold throughout the year, including 2.1917 million tons of chemical products and 5.8381 million tons of refining products.
It is understood that after the completion of the second phase of the project, the total upstream refining and chemical production capacity of Hengyi Petrochemical can reach 22 million tons/year. Not only will the ranking jump to Southeast Asia’s refinery capacity The fifth position will open up huge room for growth in the subsequent release of medium and long-term production capacity.
In 2020, the company’s chemical fiber business will continue to grow. In the past year, Haining New Materials’ 1 million tons of filament production capacity and Jiaxing Yipeng’s 500,000 tons of filament production capacity have been put into production. In 2020, the production and sales of the company’s polyester products (including filament, staple fiber, and chips) continued to maintain a booming trend, with production and sales of 6.5027 million tons and 6.056 million tons respectively, a year-on-year increase of 15.56% and 8.28%.
As one of the leading companies in the PTA industry, Hengyi Petrochemical focused on strengthening production technology management and optimizing operational capabilities in the PTA business last year. Zhejiang Yisheng, controlled by the company, achieved production and sales of 4.8502 million tons and 4.8432 million tons. Zhejiang Yisheng achieved a total net profit of 1.776 billion yuan; Dalian Yisheng and Hainan Yisheng, which held shares, achieved net profits of 1.092 billion yuan and 983 million yuan respectively. In 2020, the gross profit margin of the consolidated scope of PTA business was 11.00%, continuing to maintain the leading level in the industry.
At present, the 6 million-ton PTA project of Yisheng New Materials, invested and constructed by the company in cooperation with Rongsheng Petrochemical, is progressing as scheduled. The 3-million-ton line 1# is scheduled to be completed and put into operation in the second quarter of 2021. , Line 2 is expected to be completed and put into production by the end of 2021.
It is worth mentioning that Hengyi Petrochemical maintains high growth while also paying stable dividends. The annual report shows that the company’s board of directors reviewed and approved the 2020 dividend plan, distributing a cash dividend of 3.00 yuan (tax included) for every 10 shares, with a total cash dividend of 1.104 billion yuan, accounting for 35.95% of the company’s 2020 net profit attributable to the parent company. According to statistics, from 2016 to 2020, Hengyi Petrochemical’s cash dividends were 162 million yuan, 330 million yuan, 853 million yuan, 1.137 billion yuan, and 1.104 billion yuan respectively. The cumulative dividends in the five years exceeded 3.5 billion yuan. </p
