Zhejiang Longsheng, Whose Performance And Share Price Have Reached A New High, Will Enter The 22 Billion Yuan Revenue Club This Year.

The Zhejiang Longsheng group Limited by Share Ltd, the local dye leader, has released a fairly handsome 2018 performance report. During the reporting period, the company achieved a total revenue of 19 billion 76 million yuan, up 26.32% from the same period last year, and realized a profit of 5 billion 88 million yuan, an increase of 49.38% over the same period last year. The net profit attributable to the shareholders of the parent company was 4 billion 111 million yuan, an increase of 66.2% over the same period last year, and a double breakthrough in operating income and profit has achieved a record high in the year of 2018.

The company intends to distribute 2.50 yuan (including tax) for every 10 shares.

Zhejiang Longsheng is currently the leading textile company in the world, and has been the leading company in the world for its textile chemicals business and intermediates based on two phenylene amine and resorcinol.

The company's main dyestuff industry, the company has been focused on the establishment of the intermediate business segment, has become an important source of substantial profits.

According to the earnings report, the average price and sales volume of Zhejiang Longsheng dyestuff in the four quarter of 2018 were slightly lower than that of the same period in 2017.

In the 4 quarter of 2018, net profit of 776 million yuan, 1 billion 82 million yuan, 1 billion 321 million yuan and 933 million yuan were achieved respectively, of which 628 million yuan was deducted from the 4 quarter net profit. Most of the government's non recurrent gains and losses were 407 million yuan (a total of 213 million yuan a year) and investment income (172 million yuan a year) was confirmed in the 4 quarter.

The company achieved a net profit of 4 billion 111 million yuan a year, a record high in history, and a gross profit margin and net profit of 45.43% and 22.08% respectively.

According to the financial report, in 2018, Zhejiang Longsheng sold 241 thousand and 900 tons of dye and 107 thousand and 300 tons of intermediates, with sales revenue of 11 billion 100 million yuan and 3 billion 640 million yuan, gross profit of 5 billion 310 million yuan and 2 billion 297 million yuan respectively, and the gross profit margin of intermediates reached 63.01%, significantly exceeding that of dye business.

The intermediates of the company are mainly two benzyl amine and resorcinol, which have maintained a good profit level for a long time. With the expansion of the scale, gross profit increased from 171 million yuan in 2008 to 2 billion 297 million yuan in 2018, and the annual compound growth reached 30%.

Guoxin Securities analyst Wang Nianchun believes that as the world's leading enterprises in the dyestuff industry, Zhejiang Longsheng has a very strong industry threshold, not only in terms of capital and channels, but also more importantly, the company has accumulated long-term accumulation in the aspects of safety production management, circular production, pollution reduction and emission reduction, and has already achieved the leading level in the industry.

In the chemical industry, the fine chemical industry is one of the most stringent requirements for production safety. From the observation, Zhejiang Longsheng can expand its leading position in the intermediate business and expand the market space with the help of this advantage for a long time.

The company's development in fine chemicals is worth long-term optimism. In recent years, the company has enjoyed the high prosperity of dyestuff and intermediate products, and will have more capital to develop other subdivision products in the future.

Zhejiang Longsheng has become the world's largest producer of textile chemicals by integrating the technologies, services, brands, channels, capacity, cost and technological innovation capabilities of Longsheng and de star. It has the world's annual production capacity of over 300 thousand tons of dye and its annual production capacity of about 100 thousand tons of auxiliaries, ranking first in the global market.

The company has an annual capacity of 110 thousand tons of intermediate capacity, the cost and environmental advantages of integrated production, so that the company's intermediates business to maintain sustained and rapid growth.

Zhejiang Longsheng has the world's complete product development, process development, color application service (CSI) and sustainable development solution technology research and development system. At present, it has nearly 1900 patents from home and abroad, and strong R & D capabilities provide powerful technical support for the company's product development in the high-end market.

In 2018, Longsheng Research Institute implemented 35 projects in a total of 8 projects, including 35 projects under construction and 40 new projects.

The implementation of disperse dye and water saving project will effectively enhance the core competitiveness of the disperse dye business.

In the manufacturing sector, Zhejiang Longsheng global dye sales volume of 241 thousand and 900 tons, intermediate sales volume of 107 thousand and 300 tons, dyestuff and intermediates business has been neck and neck to become an important pillar of the company's profits, especially intermediates business actively grasp the international and domestic market limited capacity of the favorable situation.

In terms of real estate business, Zhejiang Longsheng focuses on Shanghai Huaxing new town project, Datong base project and Mount Huangshan road project.

The Huaxing new town project actively cooperated with the Jingan District government in doing the demolition work. It has completed the relocation of all the residents, hired the world's top design firms to complete the overall design plan, and included in the major projects in Jingan District in 2019.

The construction of Datong base project was started in July, and it is expected to start pre-sale in 2020.

Mount Huangshan road project phase 1 Civil Engineering and installation works have been completed to ensure the realization of 2019 and confirm revenue.

Zhejiang Longsheng said that in the next few years, driven by the pformation and upgrading of the domestic industrial structure, the company will continue to develop rapidly in the field of special chemicals, and pay close attention to the fields of clean production technology research, such as new materials and heavy polluting products, and pay attention to the advantages of scale, technology, quality and branding through the integration of "endogenous technology development" and "extensive acquisition and merger".

At the same time, we should use the comprehensive advantages of the company to expand diversified businesses such as real estate, and plan for the future performance improvement.

In the field of manufacturing business:

Special chemicals business: we will re plan the existing capacity distribution, and improve the product and industrial chain through technological breakthroughs. We will double the scale of Shangyu base without increasing land and other factors, improve the level of automation control, and strengthen cleaner production processes and comprehensive recycling. The final products will cover disperse dyes, reactive dyes, anthraquinone dyes, acid dyes, benzene intermediates, naphthalene intermediates, heterocyclic intermediates, and their core raw materials.

Dyestuff business: continue to enhance safety standards and upgrade environmental protection as an opportunity. Through technological pformation, the total dye production capacity of the world has reached 350 thousand tons / year, ensuring that core business continues to lead the world.

Taking advantage of the opportunity of gathering and upgrading of downstream printing and dyeing industry, we should actively promote the pformation of downstream printing and dyeing methods, try to explore new environmentally friendly technologies and flexible production in the downstream, and provide a full range of printing and dyeing products, printing and dyeing technology and environmental protection support for the downstream, and promote the establishment of products, ecological chains of dyes, printing and dyeing, clothing retailers and consumers.

Intermediate business: will continue to expand the market share of two benzyl amine and resorcinol, expand the capacity of benzene two amine to 100 thousand tons / year in the future, expand the production of resorcinol to 50 thousand tons / year, and expand the production of related intermediates with the integration as the core, develop new intermediate products, integrate and extend the upstream of the dye supply chain, continue to improve and upgrade the industrial chain, strengthen the control position of strategic intermediate raw materials, and create a pparent factory that is safe and digitalized.

Real estate business: Zhejiang Longsheng will use clear financing channels and low financing costs to make clear Shanghai's first tier cities, actively promote Huaxing new city project, Datong base project, Mount Huangshan road project and other old district pformation work. In upgrading Shanghai's city level level, it will also lay a foundation for the company to build quality brand in Shanghai, and for the company's considerable development in the next few years and even longer.

In 2019, the Zhejiang Longsheng plan achieved a total revenue of 22 billion yuan, an increase of 15.33% over the previous year, with a total profit of 6 billion 300 million yuan, an increase of 25.05% over the previous year, and a net profit attributable to the owners of the parent company: 5 billion yuan, an increase of 21.61% over the previous year.