On December 13, Aoke announced that it would invest in the construction of downstream derivatives of ethylene oxide in Yangpu, Hainan, with a total investment of 1.65 billion yuan to open up the South China market. The company expects that after the project is put into production, the average annual revenue will reach 3 billion yuan, nearly half of last year's annual revenue.
The national layout strategy of Oak shares continues to advance, and the leading product, polyether monomer, has a market share of more than 40% in major domestic fields.
As the largest and most widely distributed ethylene oxide-derived fine chemical new material manufacturer in China, with the help of scale, Aoke’s revenue growth has slowed or even declined in the past two years, but its net profit margin has increased from 1 in 2016. % Has increased to 8.05% in the first three quarters, and net profit has increased substantially for four consecutive years.
On December 13, Aoke signed an investment agreement with the Hainan Yangpu Economic Development Zone Management Committee (hereinafter referred to as the "Yangpu Management Committee"). The company plans to invest in the construction of downstream ethylene oxide derivatives projects in Yangpu, Hainan. The investment is 1.65 billion yuan.
In the first phase of the project, the company will invest 450 million yuan to build 200,000 tons of ethylene oxide derivative products, including ethylene oxide derived fine chemical new material products and 150,000 tons/year polyether high-performance water reducer. Body, 100,000 tons/year alcohol ether, 100,000 tons/year anionic surfactant, etc.
The 1 million tons/year ethylene of Hainan Refining & Chemical Co., Ltd. and the ethylene oxide produced by the refining expansion project will be coordinated and supplied by Yangpu Management Committee. After the completion of normal operation, the five-year cumulative operating income is about 5 billion yuan, and the total tax payment in five years is about 200 million yuan.
And according to the follow-up situation, Aoke will continue to invest in the second phase of the project. It is expected to invest 1.2 billion yuan in the construction of natural fatty alcohols, ethylene carbonate and special fine chemical products. After normal operation, the accumulated operating income will be about 10 billion yuan. , The five-year total tax payment is about 750 million yuan.
According to the above-mentioned plan, after this project in Hainan reaches full production capacity, the annual average revenue of Oak shares will reach 3 billion yuan, which is close to 50% of the company's 6.288 billion yuan revenue last year.
At present, Aoke Co., Ltd. owns the largest 50,000 cubic meters of low-temperature ethylene storage tank in China, a single set of 200,000 tons of commercial ethylene oxide and its deep processing equipment. It has 1.3 million tons of ethylene in Northeast, East, South, Central and Southwest China. The strategic layout of the oxygenation device has formed a complete industrial chain from ethylene to epoxy, to polyether monomer and mother liquor, non-ionic surfactant and its derivative specialty chemicals.
From the perspective of revenue distribution, the four major regions of East China, Southwest, Central South, and North China are the company's main sales markets, accounting for approximately 90% of total revenue. Under the national strategic layout, the company's northwest and northeast market sales are being cultivated and the scale is gradually expanding.
Oak shares said that the investment and construction project will fully mobilize the advantageous position of Yangpu Economic Development Zone in the construction of Hainan Free Trade Port, further accelerate the development of the Southeast Asian RCEP agreement country market, and increase the company's market share in southern China and overseas.
According to the above-mentioned Hainan project's revenue, sales in South China and overseas will account for a large proportion of the company's revenue, further consolidating the company as the most complete, largest, and most widely distributed ethylene oxide derivative fine chemical industry in China The leading position of new material manufacturing enterprises.
Deeply cultivated in the ethylene oxide deep processing industry for 27 years, Aoke's ethylene oxide deep processing industry products account for more than 40% of the domestic market share, and it is one of the world's largest suppliers of ethylene oxide-derived fine chemical new materials. It has established strategic partnerships with companies such as Kezhijie, Red Wall, Oriental Yuhong, Liby, and Sika.
Among them, the company's leading product, polyether monomer, has a market share of more than 40% in major domestic fields. In the past two years, Aoke’s polyether monomer revenue has been around 5.1 billion yuan, accounting for 82.23% of total revenue last year. The revenue scale has increased by 1.66 times from 2 billion yuan in 2015, driving the company’s overall revenue growth.
In recent years, Aoke shares have been deployed throughout the country, focusing on the production company's 500-kilometer radius to deepen the market, greatly reducing logistics costs, and after the expansion of the scale, the core competitiveness has continued to strengthen and the market bargaining power has improved. Therefore, under the slowdown in the revenue growth of polyether monomer water reducing agent, the company's gross profit margin and net profit have steadily increased.
In the first three quarters of this year, Oak’s gross profit margin reached 15.47%, and the net profit margin increased for four consecutive years. In the first three quarters of 2016-2020, the company’s net profit margin was 1%, 3.84%, 4.55%, 5.76%, and 8.05%. The net profit margin increased, and the company's net profit increased substantially for 4 consecutive years.
Take this year as an example. In the first half of the year, the sales volume of Polycarboxylic acid water-reducing agent polyether monomer, the main product of Aoke, was 280,600 tons, down 11.69% year-on-year, but gross profit was 304 million yuan, up 10.67% year-on-year. In the first three quarters, the company's overall revenue fell by 16.36%, but its net profit reached 298 million yuan, a year-on-year increase of 22.84%.
In addition, Aoke shares innovated around ethylene oxide, and has formed high-end polyethylene glycol, polycarboxylic acid water reducing agent polyether, green surfactant, high-end ester ether, new alkoxylation catalyst, new special additives, and new battery Eight project teams including materials and ethylene-derived new materials.
The development and application of the ethylene oxide-derived fine chemical special products planned to be invested by Aoke Co., Ltd. in high-end fields such as new energy, new materials, new environmental protection, and electronic chemistry are still in the growth stage and have a broad market space. With the optimized layout of the product structure, the gross profit margin of Oak shares is expected to continue to increase.
