Latest! Wanhua Chemical, which has surged profits for three years in a row, is about to make an appointment this year!

Over the past three years, Wanhua Chemical's net profit has remained at a scale of 10 billion yuan.
but profitability fell sharply in 2019 as the chemical industry boom cycle ended.
the evening of March 30, Wanhua Chemical released its latest financial results

. The report showed revenue of 68 billion yuan in 2019, down 6% year-on-year, and net profit of 10.1 billion yuan, down 35% year-on-year.
Wanhua Chemical attributed the decline in operating results to lower prices in the polyurethane sector.
2019, the polyurethane sector contributes about half of Wanhua Chemical's total revenue, with a gross margin of more than 41%, making it the most profitable of the company's three segments. Polyurethane is a new organic polymer material, known as the "fifth largest plastic", widely used in many areas of the national economy.
chemical polyurethane plate includes MDI and TDI and other varieties. Wanhua Chemical is currently the world's largest manufacturer of MDI, this product is mainly used in the production of polyurethane materials, can be used in automotive, home appliances and other industries. In the domestic MDI market, Wanhua Chemical's market share exceeds 40%.
2019, low prices for chemical products such as MDI led to an 18% drop in wanhua's chemical polyurethane sector and a 9 percentage point reduction in gross margin, which was a major factor in the company's decline in earnings.
two other plates of Wanhua Chemical for petrochemical series and fine chemicals and new materials series. The first half of 2016-2018 was a golden cycle for the domestic chemical industry, with chemical companies hitting new highs, but that ended last year. Total domestic chemical industry profits fell 13.9 per cent in 2019, the biggest drop in a decade, according to a report by the China Petroleum and Chemical Industry Federation.
2017, Wanhua Chemical's net profit exceeded 10 billion yuan for the first time. The company also launched its overall listing that year and completed it last year. With the overall listing, Wanhua Chemical's total MDI production capacity increased to 2.1 million tons/year, making it the world's No. 1.
2019, domestic economic growth has slowed and manufacturing sentiment has remained low, although the short-term chemical industry downturn, the overall operation of the industry is facing challenges, although Wanhua has accelerated the pace of globalization. Domestic aspects, Ningbo, Yantai, Zhuhai production base is still expanding capacity, optimization, Fujian base, Meishan base project has also been officially launched;
2019, Wanhua's gross margin was 28.00% and its net profit margin was 15.57%, both down sharply from 2018, down 5.83pct and 5.59pct respectively. In terms of cost rates for the period, the Company's sales expense rate for 2019 was 4.1%, a significant increase of 1.3pct year-on-year, mainly due to increases of 16% and 20% respectively in logistics costs and travel expenses; The company continued to maintain a high level of investment in research and development, spending 1,705 million yuan on research and development in 2019, accounting for 2.5% of total revenue. Wanhua Chemical was able to maintain a 25.44 percent decline in profits.
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