Wanhua Chemical released its semi-annual report, achieving an operating income of 89.119 billion yuan

Latest News: Wanhua Chemical announced its semi-annual report on the evening of July 28. In the first half of the year, the company achieved operating income of 89.119 billion yuan, a year-on-year increase of 31.72%; net profit attributable to the parent was 10.383 billion yuan, a year-on-year decrease of 23.26%; The net profit after deducting non-returning to the parent company was 10.222 billion yuan, a year-on-year decrease of 22.53%. The main reason for the increase in revenue but not profit is the increase in the price of raw materials.

Wanhua Chemical also announced that it will adjust the prices of its main products. Since August, the company’s listing price of aggregated MDI in China is 18,500 yuan/ton (down 1,300 yuan/ton from the price in July); the listing price of pure MDI is 22,300 yuan/ton (down 1,500 yuan/ton from the price in July).

In the first half of 2022, due to the conflict between Russia and Ukraine, as well as the new crown pneumonia epidemic and other factors, international crude oil, natural gas, coal and other basic energy prices remained high. In the context of the sharp rise in upstream raw material prices, chemical demand has been suppressed to a certain extent. The increase in raw material prices pushed up the sales prices of the company’s main products year-on-year. At the same time, with the company’s PO/SM, polyether and other new production capacity put into production and overseas market sales growth, the company achieved operating income of 89.119 billion yuan in the first half of 2022.
An increase of 31.72% over the same period last year. However, due to the sharp rise in the prices of basic energy such as crude oil, natural gas and coal, the company’s main chemical raw materials and energy costs of European BC companies increased significantly year-on-year, operating costs increased by 50.94%, and the gross profit margin of major products decreased year-on-year.

The announcement shows that in the first half of the year, the global polyurethane operating rate has rebounded, the inventory remains high, and the supply and demand of MDI and other markets are basically balanced.
However, the intensification of geopolitical conflicts has led to a mismatch between the supply and demand of global oil, gas, energy and bulk chemical raw materials, as well as rising costs. Coupled with the weakening of manufacturing demand in major countries and regions and the continued rise in inflation, demand growth has slowed down. Inflationary pressures in major overseas economies appeared, and the epidemic factor in the second quarter also suppressed or delayed downstream chemical consumption in the short term, and the overall profitability of the petrochemical industry was squeezed.

For the second half of 2022, Wanhua Chemical said that in terms of production, the company will continue to strengthen safety production management. In terms of project construction,
Complete the construction and operation of nylon 12 and bisphenol A projects as soon as possible, and continue to promote the construction of Wanhua Fujian, Sichuan Meishan, and Yantai Penglai Industrial Parks.

In terms of marketing, continue to expand sales channels, cultivate potential markets, and expand new downstream application scenarios; take advantage of product synergy to achieve real-time linkage of domestic and overseas supply chains; strengthen order status tracking in downstream industries, and predict future changes in advance; Cooperation experience, improve customer satisfaction.

In terms of research and development, in the second half of the year, we will focus on superior scientific research resources to ensure the smooth production of MDI plants in Fujian, support the expansion and upgrade of MDI in Ningbo, BC and other parks, promote the transformation of nylon 12, POE and other card neck materials, and complete battery materials and high-end separation and purification Iterative upgrade of products. In terms of management, continue to deepen the management theme of “Talent Year”, and inspire more outstanding talents to join; cultivate “six talents” with strong internal drive, learning ability and execution ability, cultivate more responsibility and fulfillment Scientists, experts, engineers, technicians and other high-tech talents who are responsible for the line will help Wanhuaxin develop by leaps and bounds.

Wanhua Chemical believes that despite the complex domestic and international environment, China provides more than 40% of the world’s chemical products, and China is the world’s fastest growing chemical market. The chemical industry is still in an important period of strategic development opportunities. The industrial structure optimization and industrial upgrading potential of the chemical industry are still huge.