On the evening of March 3, FTSE Russell announced changes to the annual review of the FTSE China A50 Index. Among them, Hengli Petrochemical and other 3 A-share listed companies were included. The change will take effect after the market closes on March 19. Relevant sources said that the inclusion of Hengli Petrochemical in the FTSE China A50 Index this time proves that the company’s fundamental quality is very reliable and has been recognized by mainstream international institutional investors. In the future, it will also attract more foreign investors and passive index funds. Capital inflows.
The FTSE China A50 Index contains the 50 largest companies in China's A-share market by market capitalization, and is the index that best represents China's A-share market. Many international investors regard this index as an accurate indicator to measure the Chinese market. All listed companies selected for the relevant index samples have undergone very strict screening.
As we all know, Hengli Petrochemical, as the leader of private refining and chemical industry, has ranked first in private chemical companies in market value, and is also the first in the industry to achieve "crude oil-aromatics, ethylene-purified terephthalic acid (PTA), ethylene glycol-polyester (PET) —A private company with a full industrial chain layout of civil silk and industrial silk, engineering plastics, and film.
It is worth mentioning that Hengli Petrochemical achieved "100 billion in revenue and 10 billion in net profit" in 2019, becoming the first private chemical company with a net profit of over 10 billion yuan. Since 2020, in the face of a complex and changeable external operating environment, Hengli Petrochemical has continued to grow its profitability against the trend by relying on the world's leading integrated refining and chemical production capacity advantages and the integrated upstream, midstream and downstream petrochemical industry chain layout.
The financial report for the third quarter of 2020 shows that the company achieved operating income of 103.334 billion yuan, a year-on-year increase of 35.38%; net profit attributable to shareholders of listed companies was 9.896 billion yuan, a year-on-year increase of 45.16%.
During the reporting period, in the face of a complex and changeable external operating environment, Hengli Petrochemical’s performance bucked the trend and achieved quarter-by-quarter improvement.
Regarding the main reason for the substantial increase in revenue in the first three quarters of 2020, Hengli Petrochemical stated that it was mainly due to the good production of the refining and chemical projects during the current period, the PTA-4 project and the ethylene project were put into production, and the increased operating income of Hengli Petrochemical. Hengli Petrochemical’s 1.5 million tons/year ethylene plant was fully put into operation in the third quarter and contributed to the performance, which is an important reason for Hengli Petrochemical’s single-quarter performance in the third quarter. The project further opened up the Hengli Petrochemical "olefin-ethylene glycol-polyester" industrial chain, marking the completion of the entire industrial chain of Hengli Petrochemical's polyester chemical fiber, and the successful completion of the strategically significant upstream refining and chemical capacity construction. The ethylene raw materials used in this device are basically produced by upstream refineries and supplied through integrated pipelines. The design yield of ethylene is 48%, and the yield of diene is 60%, ranking among the top in the world, and the head effect is becoming more and more significant.
