On the evening of August 16, Hengli Petrochemical released its 2021 semi-annual report. In the first half of the year, the company achieved operating income of 104.574 billion yuan, a year-on-year increase of 55.25%; net profit attributable to shareholders of listed companies was 8.642 billion yuan, a year-on-year increase of 56.65%. It is worth mentioning that Hengli Petrochemical’s half-year profit exceeded 8.5 billion yuan for the first time, setting a record high.
Enhance the advantages of the “big chemical industry” platform
As the earliest and fastest domestic leader in implementing the strategic development of the entire industrial chain of new polyester materials, Hengli Petrochemical has vigorously expanded its upstream and downstream high-end production capacity in recent years, creating a “crude oil-aromatics, olefins-PTA, ethylene glycol-polymer “Ester-civilian yarn, industrial yarn, film, plastic” world-class whole industry chain integrated and coordinated listing platform development model.
As for the reasons for the performance growth, Hengli Petrochemical said that it benefited from the impact of rising crude oil prices and the recovery of terminal consumption, coupled with the return of overseas orders, various major chemical products produced by the refining, coalification, and ethylene units in the upstream of the industry. Product prices and spreads remained and fluctuated within a strong range, supporting the company’s stable growth in performance. At the same time, new chemical materials products downstream of the industry have also benefited from the impact of raw material costs and terminal recovery, and their profitability has improved rapidly.
During the reporting period, Hengli Petrochemical continued to strengthen its upstream role as a “big chemical” platform with “refining + ethylene + coalification” as the industrial carrier, making full use of the integration of “oil and coalification” The complete raw material resources and system coupling advantages of the output will accelerate the construction of new chemical material supporting projects, accelerate the planning and improvement of the deep processing and new material radiation capabilities of the C2-C4 olefin industry chain.
Hengli Petrochemical said that in the next step, the company will rely on its existing raw material processing resources, outsourcing resource space and equipment optimization potential, benchmark new material business segments with scale advantages and leading levels, and aim at “new Consumption” and “hard technology” will develop and upgrade key breakthrough areas of new materials, and the planned development includes high-growth, high-potential new material markets such as degradable new materials industry chain, lithium battery industry chain, photovoltaic industry chain, and new engineering plastics industry chain.
The company will accelerate the planning and improvement of the company’s deep processing capabilities in the C2-C4 olefin industry chain through continuous system technology transformation, process optimization and deep processing equipment construction, and continue to strengthen the “big chemical” platform for downstream new materials. The radiation and supporting role of industrial chain development.
Strong efforts in the field of new materials
Fan Hongwei, chairman of Hengli Petrochemical, said in an interview with a reporter from China Securities News that after the company’s industrial chain has become longer, What needs to be done is to give full play to the advantages of the upstream industrial chain, broaden and deepen the industrial chain around downstream products, and establish new competitive advantages. This requires continuous efforts in the new chemical materials business segment, while strengthening the horizontal extension and expansion of new technologies, new processes, and new products under similar lines, and continuously improving the R&D attributes, technological content, and technical proportion of the company’s downstream business segments.
Currently, Hengli Petrochemical’s downstream new material business segment is mainly distributed in differentiated polyester fiber products, functional film products, engineering plastic products and PBS/PBAT degradable new material products. Areas with high R&D attributes.
In the field of differentiated polyester fiber, the Hengke Phase II 1.35 million-ton consumer yarn project under construction by its subsidiary Hengke New Materials has successfully put into operation a 600,000-ton polyester device in the second half of last year. The subsequent spinning device was completed in the first half of this year, and the company correspondingly added 250,000 tons of DTY and 350,000 tons of POY production capacity.
At the same time, Hengli Petrochemical launched the construction of a new 1.5 million-ton green multi-functional new textile material project in Jiangsu Xuanda (Hengke Phase III) to further enhance the technical thickness and R&D attributes of the company’s civilian polyester yarn business segment and product added value. In addition, the new production capacity of Deli’s second phase of 1.2 million tons of consumer yarn and Suzhou headquarters’ 1.4 million tons of industrial yarn are also in the project planning stage, and construction will be started quickly according to the approval progress or project implementation conditions.
In terms of polyester civilian yarn and industrial yarn industry, during the reporting period, its subsidiary Deli Chemical Fiber began mass production of ultrafine fiber with a single filament fineness of 0.2 denier (D) and a specification of 15D/72f. It is one of the ultrafine fibers with the finest single filament that has been mass-produced in China; its subsidiary Hengke New Materials independently developed high-density fabric ultrafine fiber 5D/6f, which has the finest fiber bus density in the country. In addition, its Hengli Chemical Fiber Industrial Fiber Project with an annual output of 200,000 tons has been fully put into production. For the first time in the industry, its products have been used in high-end industrial special fields such as oil and gas exploration and marine engineering, breaking through the industry’s technology monopoly.
In the field of functional films and engineering plastics, its subsidiary Kanghui New Materials has continued to improve its industry competitiveness in the field of mid-to-high-end functional films and new plastic materials, and has become the first-class domestic company.
At present, Kanghui New Materials has an annual production capacity of 240,000 tons of PBT engineering plastics at its Yingkou base. It is the largest PBT manufacturer in China and has an annual production capacity of 266,000 tons of BOPET functional films. It is expected that by the end of this year Three new film production lines will be put into operation, and the production capacity will be further increased to 385,000 tons; it has the largest domestic single set of PBAT production capacity with an annual output of 33,000 tons based on independent technology, which was put into operation at the end of last year and reached full production at the beginning of this year. The product advantages of recycling, easy recycling, non-toxic and harmless, and high safety are fully suitable for urgent applications in the field of degradable food grade.
Continue to promote project construction
For better�Leveraging its advantages in refining and chemical integration, Hengli Petrochemical continues to promote project construction, continuously optimizes and upgrades its industrial model, and consolidates and expands its production capacity advantages in each link. It is worth mentioning that in order to further consolidate and expand its advantages in the field of new materials, Hengli Petrochemical has launched the construction of several large-scale projects.
For example, based on the Yingkou base, Kanghui New Materials is accelerating the planning of the overall design and project construction work at the Fenhu base and Kunshan base in Suzhou, Jiangsu. After the above two bases are fully put into production, it will be equivalent to creating two “upgraded versions of Kanghui New Materials”. The company will also become the world’s largest production base of functional films, functional plastics and biodegradable new materials.
During the reporting period, Hengli Petrochemical has launched the Kanghui Dalian New Materials 450,000-ton PBS biodegradable plastics project in accordance with the progress of the preliminary preparations for the overall production capacity plan, with a total investment of 1.798 billion yuan and a main construction of 45 Ten thousand tons of PBS/PBAT biodegradable new material production capacity. After the completion of the project, it will effectively expand the production capacity and scale of Hengli Petrochemical’s degradable new materials segment and increase the market share of degradable plastics.
Hengli Petrochemical deeply explores the demand trend of new energy for new chemical materials, and relies on the strategic support of the chemical platform and years of accumulation in the downstream high-end membrane market to quickly deploy the lithium battery separator field. At present, the company has substantially started various preparations for the construction of new product production capacity for lithium battery separators.
In addition, the company also simultaneously launched the Jiangsu Kanghui New Materials project with an annual output of 800,000 tons of functional polyester films and functional plastics, with a total investment of 11.12 billion yuan. The construction content includes 470,000 tons of high-end functional polyester film, 100,000 tons of special functional film, 150,000 tons of modified PBT, and 80,000 tons of modified PBAT. </p
