On the evening of April 5, Hengli Petrochemical (600346) released a full-year performance report for 2020 and a performance forecast for the first quarter of 2021. The announcement shows that in 2020, Hengli Petrochemical’s performance reached a new high, achieving operating income of 152.397 billion yuan, a year-on-year increase of 51.21%; net profit attributable to shareholders of listed companies was 13.462 billion yuan, a year-on-year increase of 34.29%. At the same time, in the first quarter of 2021, the company achieved a net profit of 4.137 billion yuan attributable to shareholders of listed companies, a year-on-year increase of 93.02%, achieving a “good start.”
Faced with the complex external environment, rising revenue and net profit bucked the trend, once again demonstrating Hengli Petrochemical’s excellent profitability and risk resistance throughout the industry chain. Hengli Petrochemical stated that the company’s performance can double against the trend, which is inseparable from the high-load operation of the large refinery throughout the year and the launch of new production capacity in the entire industry chain. 2020 is the first full year since Hengli’s 20 million tons/year integrated refining and chemical project was put into operation. The device has maintained a high-load, low-cost, and smooth operation throughout the year.
Secondly, the company’s wholly-owned 1.5 million tons/year ethylene project and 5 million tons/year PTA-4, PTA- Line 5 was fully put into production and achieved commercial operation in 2020. It began to contribute profits in the third quarter, and entered the fast lane of high-quality operation and full production and sales in the first quarter of this year. Its strong competitive advantages and profitability have become increasingly apparent.
At the same time, the company’s “PTA-polyester” industrial chain is operating well, especially the smooth production of degradable plastics in the fourth quarter. Hengli Petrochemical has become a domestic degradable plastic manufacturer in one fell swoop. The main raw material supplier of plastics, with its excellent performance and production capacity scale advantages, it has high market recognition and strong profitability.
Focus on the “14th Five-Year Plan” and dedicate a centenary to the founding of the party. It is reported that Hengli Petrochemical will continue to focus on its main business and empower the extended chain. While refining the industrial chain, it will focus on the field of high value-added special new materials, extend the industrial chain in depth, and create a “small cycle” of the industry. In the next three years, the company plans to put 900,000 tons of degradable materials, high-end polyester film, differentiated functional civilian polyester filament and high-performance industrial yarn into production, which is expected to bring tens of billions of dollars to Hengli Petrochemical. net profit. At the same time, the company actively explores new areas of fine chemicals, plans to build fine chemicals and new materials industrial parks, and creates a petrochemical “big cycle” to achieve in-depth coordinated development of the “big petrochemical” platform and “new materials” business. </p
