Wanhua Chemical's semi-annual net profit of 10.383 billion yuan decreased by 23.26% year-on-year

On the evening of July 29, Wanhua Chemical released its 2022 semi-annual report
.
In the first half of the year, Wanhua Chemical achieved operating income of 89.
119 billion yuan, a year-on-year increase of 31.
72%; net profit attributable to shareholders of listed companies was 10.
383 billion yuan, a year-on-year decrease of 23.
26%; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 102.
22 100 million yuan, a year-on-year decrease of 22.
53%; the net cash flow from operating activities was 14.
283 billion yuan, a year-on-year increase of 28.
85%
.

In the first half of the year, Wanhua Chemical's basic earnings per share was 3.
31 yuan per share, a year-on-year decrease of 23.
20%; the weighted average return on equity was 14.
64%, a decrease of 10.
43 percentage points from the same period last year
.

Talking about the reasons for the changes in performance, Wanhua Chemical stated that in the first half of 2022, due to factors such as the conflict between Russia and Ukraine, as well as the new crown pneumonia epidemic, 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 new production capacity such as PO/SM, polyether, etc.
, and the increase in sales in overseas markets, the company achieved operating income of 89.
119 billion yuan in the first half of 2022, an increase over the same period last year.
31.
72%
.
However, affected by 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
.

In addition, in the first half of the year, the global polyurethane operating rate rebounded, the inventory remained high, and the supply and demand of MDI and other markets were basically balanced.
However, the intensified geopolitical conflict led to a mismatch between the supply and demand of global oil and gas energy and bulk chemical raw materials, and increased costs.
In addition, major countries and regions Affected by factors such as weak manufacturing demand and continued inflation, demand growth 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, the nylon 12 and bisphenol A projects will be completed and put into operation as soon as possible, and the construction of Wanhua Fujian, Sichuan Meishan and Yantai Penglai Industrial Parks will continue to be promoted
.

In terms of marketing, continue to expand sales channels, cultivate potential markets, and expand new downstream application scenarios; leverage the advantages 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 invite 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
.

On the same day, Wanhua Chemical also issued an announcement saying that starting from August 2022, the listing price of the company’s aggregated MDI in China will be 18,500 yuan/ton (down 1,300 yuan/ton from the price in July); the listing price of pure MDI will be 22,300 yuan/ton (compared to The price was lowered by 1,500 yuan/ton in July)
.

According to the data, Wanhua Chemical Group Co.
, Ltd.
, formerly known as Yantai Synthetic Leather Factory, was originally established in 1978 and undertaken the construction of the first polyurethane industrial base in the history of China's modern industry
.
In 1980, Yantai Synthetic Leather Factory broke ground.
In 1998, the joint-stock system reform was completed, and Yantai Wanhua Polyurethane Co.
, Ltd.
was established
.
On January 5, 2001, the company was officially listed on the Shanghai Stock Exchange.
In 2013, Yantai Wanhua Polyurethane Co.
, Ltd.
officially changed its name to "Wanhua Chemical Group Co.
, Ltd.
"
.
Wanhua's initial revenue was less than 600 million yuan, but after nearly 20 years of development, it has grown into the world's leading polyurethane enterprise with a revenue of more than 60 billion yuan, and has expanded its business to more than ten countries such as Europe, the United States, and Japan.
There are companies and offices in the region
.

The business is mainly divided into three major sectors: first, polyurethane business: covering MDI, TDI, polyether polyol and other polyurethane industry clusters; second, petrochemical business: propylene and its downstream acrylic acid and ester, propylene oxide, currently under construction ethylene and its downstream LLDPE and ethylene oxide, etc.
; third, functional chemicals and materials business: mainly covers polycarbonate, SAP, water-based PUD, PA emulsion, TPU, ADI series,
etc.
Wanhua has a wide variety of products and a wide range of applications.
Its main downstream applications include living and home furnishing, sports and leisure, automobile transportation, construction industry, and electronic appliances
.

At present, there are nearly 15,000 employees (including BC companies) worldwide, and nearly one third of them are foreign employees
.