Wanhua Chemical Revenue Last Year, 60 Billion Net Profit Of 15 Billion 900 Million, The Average Daily Profit Of Shandong Enterprises Tens Of Millions.

The world's largest MDI manufacturing enterprise, Wanhua chemical group, Limited by Share Ltd (hereinafter referred to as Wanhua chemical), Limited by Share Ltd of Wanhua chemical group, the largest MDI manufacturing enterprise in the Asia Pacific region (hereinafter referred to as "Wanhua chemical") has released 2018 annual performance bulletin. During the reporting period, the company achieved operating income of 60 billion 621 million yuan, an increase of 14.11% compared with the same period last year, and the net profit attributable to shareholders of listed companies was 15 billion 977 million yuan, down 4.71% compared with the same period last year.

Wanhua chemical said that during the reporting period, sales volume of all business sectors increased, but the market performance of polyurethane products began to decline in the second half of the year, and the annual business performance declined slightly.

According to the results of the report, the polyurethane products are still the main source of company profits. In the first half of 2018, the income accounted for 56%, and the gross profit ratio was 79%. The MDI price fluctuation had a great impact on the company's performance.

It is worth the industry's concern that Wanhua chemical evening announcement February 27th, since March 2019, the increase in China's aggregate and pure MDI listing price, respectively, is 2000 yuan / ton and 1000 yuan / ton, this is the first time since 2018 September.

Analysts think, aggregate MDI price significantly downlink the performance of the company, it is understood that in the two quarter of 2018, the domestic aggregate MDI price opened the downlink channel, last year, Shandong region aggregated MDI mainstream average price of 19184 yuan / ton, compared with 2017 average price of 28.6%, 2018 aggregate MDI average gross profit of 6172 yuan / ton, compared with 2017 Maori level 54.5%.

After entering the four quarter, due to the weakening of downstream demand and the impact of the international oil price slump, prices quickly entered the downstream channel. The average price of Shandong in the fourth quarter dropped to 12567 yuan / ton, a sharp decline of 57.1% compared with the same period last year, and the lowest price dropped to 11200 yuan / ton. At the same time, the gross profit level of the industry dropped by 99.1%, and the whole industry basically entered a break even state.

Yang Lin, a Southwest Securities analyst, said that Wanhua chemical has MDI production capacity of 1 million 800 thousand tons. The decline in MDI prices and the decline in profitability are the main reasons for Wanhua's 2018 performance decline.

But at the same time, Wanhua chemical company's net profit in 2018 only declined by 4.7%, which fully demonstrated the excellent cost control ability of the company, and the rapid development of petrochemical business and new material business segment in 2018.

In addition, Wanhua chemical absorption and merger of Yantai Wanhua Chemical Co., Ltd. and related party pactions have been completed. In the future, Wanhua chemical holding 100%BC shares, Wanhua Ningbo 25.5% and Wanhua chlor alkali power 8% will be injected into the listed companies to achieve the overall listing of Wanhua's chemical assets and solve the problem of interindustry competition which has been existing in Wanhua industry after the acquisition of BC chemistry in 2011.

Yang Lin pointed out that Hungary BC is the largest manufacturer of MDI and TDI in central and Eastern Europe, with MDI capacity of 300 thousand tons and TDI capacity of 250 thousand tons, covering Europe, the Middle East and Africa, and the eighth largest polyurethane manufacturer in the world.

After BC is incorporated into the listed company, Wanhua chemical will become the world's largest MDI supplier (2 million 100 thousand tons capacity), and will realize the layout of the three major markets in Asia, Europe and the Americas, and will also achieve the global production and operation of the company.

Meanwhile, in the fourth quarter of last year, the TDI project of Wanhua chemical industry, the next 1 million tons of ethylene projects, MMA/PMMA and many other new material projects will further open up the growth space of the company and continuously enhance the performance level of Wanhua chemical industry.

According to public information, Wanhua chemical is a global operation of new chemical materials company, covering MDI, TDI, polyether polyols and other polyurethane industrial clusters, acrylic acid ester and propylene oxide, and other petrochemical industrial clusters, water-based PUD, PA emulsion, TPU, ADI series and other functional products and materials industry cluster.

The service industries mainly include: living home, sports and leisure, automobile pportation, construction industry, electronic and electrical appliances and so on.

The actual control of the company is made by the Yantai SASAC.

Wanhua chemical has many advantages, such as capacity, technology and cost, and has risen to be the world leader in MDI.

After continuous technological pformation and new construction, expansion and expansion, the company's MDI capacity expanded from 10 thousand tons in 1994 to the current 1 million 800 thousand tons, plus Hungary's BC 300 thousand tons capacity, the company's capacity reached 2 million 100 thousand tons, ranking first in the world.