Huayi fine chemical industry lost more than 100 million yuan

In 2018, Huayi Group's operating revenue was 44.240 billion yuan, a year-on-year increase of 1.56%; the net profit attributable to shareholders of the listed company was 1.807 billion yuan, a year-on-year increase of 218.24%. Exceeding the annual operating targets determined by the board of directors. Among them, the net profit of Shanghai Huayi Fine Chemical Co., Ltd., a subsidiary mainly engaged in coating and paint business, is - 114 million yuan. BASF Shanghai paint Co., Ltd., a joint-stock subsidiary of OEM automotive coatings, automotive parts coatings and motorcycle coatings, has a net profit of 60.3184 million yuan, while Shanghai International Paint Co., Ltd., whose main products are paints for ships, marine engineering and yachts, has a net profit of 16.6745 million yuan. Huayi Group said that during the reporting period, the company's chemical industry continued to maintain a good overall trend, with stable demand, optimized structure, and rapid profit growth. The profit margin of the main business income of the whole industry refreshed its historical level. At the same time, the industry is also facing new challenges, the external environment is undergoing profound changes, the world trade barriers continue to increase, and promote the global economic restructuring. From the perspective of price trend, affected by the price fluctuation of bulk commodities, the price of chemical products fluctuated a lot, especially since the fourth quarter, the price index of chemical industry has dropped, which has pushed the enterprise benefit down. Some chemical sub industries, including tires and other products, are still facing severe market supply and demand conflicts, and the demand continues to be weak.

In 2018, Huayi Group produced 1.4979 million tons of methanol, 2.23 billion yuan of operating revenue; 1.223 million tons of acetic acid, 4.382 billion yuan of operating revenue; 1.076 million cubic meters of industrial gas, 1.101 billion yuan of operating revenue; 335700 tons of acrylic acid and ester, 1.793 billion yuan of operating revenue; 51800 tons of paint and resin, 1.027 billion yuan of operating revenue; and tire production 9.7529 million articles, with an operating revenue of 7.759 billion yuan. According to the situation of main businesses and industries, the operating revenue of chemical manufacturing is 15694631080.11 yuan, an increase of 18.34% year on year; the operating cost is 12105842052.24 yuan, an increase of 6.15% year on year. In terms of main business and products, the operating revenue of coatings and resins was 1026949057.70 yuan, up 9.06% year on year; the operating cost was 865407917.79 yuan, up 13.16% year on year. In 2018, Huayi Group produced 51783.67 tons of coatings and resins and sold 52420.15 tons. For pricing strategy and price changes of main products, Huayi Group said that the company's product prices go with the market. In terms of fine chemicals, the overall demand of paint market has declined in 2018. The high-pressure situation of environmental protection tightening has brought huge pressure to the production and demand of traditional oil market, while the growth of oil to water market is slow. The market of dyes, reagents, industrial coatings and products is stable. The price of coil coating increased by 8%, and the price of iron oxide was basically the same as that in 2017. Based on the macro-economic situation at home and abroad and the current operation trend of the chemical market, Huayi Group expects that in 2019, the chemical market will face great challenges, the total price level will fall and the overall profit level will be recalled, which will force the industry to increase its high-quality development.

First, in 2019, the world economy is relatively weak, the downside risk is large, and the chemical market demand is generally weak; second, the global crude oil supply and demand are still relatively loose in 2019; third, the chemical industry will usher in a wave of capacity leap forward growth, and the industry competition is more fierce. In spite of many challenges, China is still in an important period of strategic opportunities. In the long run, China's economic development is basically oriented well and the conditions for supporting high-quality development remain unchanged. Therefore, in 2019, the chemical industry is still expected to maintain high-quality development and realize innovation. For the fine chemicals sector, Huayi Group expects the coatings industry to grow rapidly in 2019, and environmental protection is the key theme of the industry development, including waterborne coatings, powder coatings and other high solid environmental protection coatings, which will usher in more market share opportunities. At the same time, the development of domestic aerospace, marine engineering, rail transit, 5g and other industries will drive the coating industry to the direction of high-end products, high-quality services and overall solutions; the parallel integration, vertical integration, cross-border integration and integration of various innovation modes among enterprises will continue to emerge, and the industry concentration will be improved. The company will accelerate the development of waterborne coatings business, optimize product structure, further consolidate and expand market share, and improve market voice.