Last Year, 5 Billion Of Longsheng'S 17 Executives Earned More Than Ten Million Yuan Annually, And 320 Thousand Tons Of Dyes And Intermediates Were Sold.

Zhejiang Longsheng group Limited by Share Ltd (hereinafter referred to as "Zhejiang Longsheng") disclosed the 2019 annual report in the evening of April 24th. During the reporting period, the company achieved operating income of 21 billion 365 million yuan, an increase of 12% over the same period, and realized a net profit of 5 billion 23 million yuan, belonging to the parent company's shareholders, an increase of 22.17% compared with the same period last year. The earnings per share were 1.58 yuan, and the company intends to distribute 2.5 yuan (including tax) for every 10 shares.

Zhejiang Longsheng's main dyestuff industry experienced a complicated business environment in 2019. Xiangshui's serious accident and Sino US trade negotiations caused the ups and downs of product prices and sales volume, which increased the difficulty of operation. The company's main intermediates industry, high technical barriers, and strict requirements for safety in production, especially after the Xiangshui serious accident has undergone hundreds of government departments at all levels of safety inspection, production has been stable operation, thereby ensuring the rapid growth of intermediate business performance, and become an important source of company earnings growth.

During the reporting period, Zhejiang Longsheng global dye sales volume of 219 thousand and 900 tons, intermediate sales volume of 104 thousand and 100 tons, dyestuff and intermediates business has become the main source of company profits, especially the intermediate business unit stable and safe production, has played a pivotal role in the growth of the annual performance.

By integrating Longsheng and Zhejiang's advantages in technology, service, brand, channel, capacity, cost and technological innovation, Longsheng has become the world's largest producer of textile chemicals. The world has over 300 thousand tons of dye production per year, an annual capacity of about 100 thousand tons of auxiliaries and an annual capacity of 110 thousand tons of intermediate capacity. Advantages, so that the company's intermediate business to maintain sustained and rapid growth.

Zhao Chen, an analyst at Orient Securities, said that Zhejiang Longsheng started with auxiliaries, and then switched to dyes and intermediates. After years of development, it has grown into the world's largest producer of textile chemicals. Its business scope is currently in the fields of dyes, intermediates, inorganic chemicals, real estate and investment. Thanks to years of technological input and environmental upgrading, we have judged that the company has established a great comparative advantage in the field of dyes and intermediates, and its profitability is significantly higher than that of its competitors.

At present, Zhejiang Longsheng has 300 thousand tons of dye design capacity and 100 thousand tons of auxiliaries in the world, of which 140 thousand tons of disperse dyes, 60 thousand tons of reactive dyes, 24 thousand tons of dyestuff dyes, 100 thousand tons of auxiliaries, and 20 thousand tons of reactive dyes of India KIRI. The scale of production capacity ranks first in the world, and is the real leader of industry pricing. And the company has always attached great importance to environmental protection and research and development. Since 13th Five-Year, environmental protection and high pressure production and marketing have not been affected, and tons of processing fees have continued to decline. Thanks to the integration of cleaner production and industrial chain, the gross profit margin has been gradually widen from its competitors. In 2018, the gross profit of the company's dyestuffs was 8700 yuan higher than that of its competitors, and the excess profit was estimated to be 1 billion 800 million based on the current 240 thousand ton sales volume and the 15% income tax.

Zhao Chen said that Zhejiang Longsheng has always attached great importance to R & D and environmental protection investment. It is the only enterprise in the industry to propose zero emission management targets. In 93 and 07 years, it invested 30 million and 60 million respectively to build sewage treatment plants. In 12th Five-Year, it invested more than 400 million in upgrading and upgrading of environmental protection. In the past two years, environmental protection investment has reached about 500 million per year. In the era when most of their peers are busy with horse racing, the company has already seen the long-term value of R & D and environmental protection for the development of enterprises, and dares to reinvest large sums of money. Undoubtedly, it has a strategic vision.

And from the past R & D expenditure and the number of technical personnel, Zhejiang Longsheng is also the most important industry. After years of accumulation and innovation, the company has successfully developed a "dye intermediate sulfuric acid water reducing agent" circular economic integration industrial park in Shangyu. In the disperse dyes section, the cleaner production integration technology such as MVR can reduce more than 70% of the waste water and more than 90% of solid waste emissions.

In the intermediate links, through the integrated production of two benzyl amine, reducing substances and resorcinol, the three step sulfuric acid ladder has been achieved, which not only solves the worries of environmental protection, but also greatly reduces the production cost. Judging from the processing fee of dye tons, the company has dropped to 4400 yuan / ton in the past 18 years, and the profit of dye ton is 8700 yuan / ton higher than that of the industry competitors. The excess profit is 1 billion 800 million based on the 240 thousand ton sales volume and the 15% income tax rate. In the future, with the increasingly stringent industry standards and environmental standards, Zhejiang's Longsheng's comprehensive advantages in technology and environmental protection will continue to expand and further consolidate its global hegemony.

In addition to dyes, Zhejiang Longsheng is the leading producer of disperse dyes in the world. At present, it has 65 thousand tons of two amino amine production capacity, 10 thousand tons of by-products of o-benzene two amine and two amine of benzene, and 30 thousand tons of resorcinol, 12 thousand tons of reducing capacity. The world's leading continuous nitrification + catalytic hydrogenation reduction + hydrolysis technology has created the strong competitiveness of the intermediate plate of the company. This technology based intangible asset has constructed a deep moat for the two benzene and two phenols, resulting in an excess profit of about 1 billion 300 million. Not only has greatly reduced the cost of production, but also is expected to break through more upstream and downstream products in the future.

Zhao Chen believes that Zhejiang Longsheng has realized the integration of disperse dyes and intermediates. For the two major intermediates of reactive dyes, HA and para ester, because of the low emission costs of small businesses and the cheaper outsourcing, the company has historically purchased outsourcing, with an average annual purchase volume of about 5700 tons and 12 thousand tons respectively. But with the improvement of environmental standards in the future, the cost and price of small businesses are also rising. At present, the company has planned 20 thousand tons of H acid and 20 thousand tons of para ester project. It is estimated that a 10 thousand ton acid project will be put into operation this year. Another 20 thousand tons of resorcinol extension, 5000 tons of resorcinol formaldehyde resin project will also be completed in the year. In the next few years, the new projects that are gradually reaching production will continue to contribute to the incremental performance, and the overall competitiveness of the company's entire industrial chain will also continue to improve.

Zhejiang Longsheng also said that in the next few years, driven by the transformation and upgrading of 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. The advantage is "industry extension" and "technology extension" as the main line of development, and the diversification and internationalization of products and businesses. 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.

Zhejiang Longsheng plan, the company's dyestuff business continues to take the opportunity of upgrading safety standards and upgrading environmental protection. Through technological transformation, the company's total capacity in the world is regulated to 350 thousand tons / year, to ensure that core business continues to lead the world. The company's intermediation business will continue to expand the market share of benzyl two amine and resorcinol, and the future production of benzene two amine will expand to 100 thousand tons / year. Resorcinol production capacity is expanded to 50 thousand tons / year, and at the same time, integration is the core to expand production of related intermediates and develop new intermediate products.

The Zhejiang Longsheng plan achieved a total revenue of 19 billion yuan in 2020, a decrease of 11.07% over the previous year, a total profit of 6 billion 220 million yuan, an increase of 0.37% over the previous year, and a net profit of 5 billion 50 million yuan attributable to the owners of the parent company, an increase of 0.54% over the previous year.