On the evening of March 15, 2021, Wanhua Chemical released its annual performance report, stating that the net profit attributable to shareholders of listed companies in 2020 was approximately 10.04 billion yuan, a year-on-year decrease of 0.87%; operating income was approximately 73.433 billion yuan, a year-on-year increase 7.91%; basic earnings per share was 3.20 yuan, a year-on-year decrease of 0.93%.
During the reporting period, the net cash flow from operating activities was 16,849,705,990.71 yuan. As of the end of 2020, the net assets attributable to shareholders of the listed company were 48,780,345,139.19 yuan.
Regarding the changes in performance, Wanhua Chemical said that in the second half of 2020, as the downstream demand of the global chemical industry improved rapidly, demand in some areas increased rapidly, and the sales volume of the company's main products increased, and the sales price increased. Among them, the revenue and cost of the company's polyurethane series products increased compared with the previous year, and the gross profit margin increased. This was mainly due to the increase in the sales of polyurethane series products during the reporting period and the decrease in unit cost year-on-year. The increase and the decrease in gross profit margin were mainly due to the increase in LPG trade volume during the reporting period and the decrease in petrochemical product prices year-on-year. In addition, the revenue and cost of the company's fine chemicals and new material series products increased compared with the previous year, and the gross profit margin declined, mainly due to the increase in product sales during the reporting period and the decrease in prices. In addition, domestic operating income and costs have fallen compared with the previous year, and gross profit has decreased, mainly due to the decline in petrochemical product prices; foreign operating income and costs have increased, and gross profit has increased, mainly due to the increase in product exports and trade volume.
With the continuous release of the three major series of incremental production capacity, Wanhua Chemical's continued growth will be promoted. Therefore, the net profit attributable to shareholders of listed companies in the fourth quarter is expected to increase from 91% to 113% year-on-year, which exceeds expectations.
On the same day, Wanhua disclosed an announcement that it plans to absorb and merge its wholly-owned subsidiary Yantai Zhuoneng Lithium Battery. As of December 31, 2020, Zhuoneng’s total assets of lithium batteries were 167,675,400 yuan, and the net assets were 63,857,900 yuan. In 2020, Zhuoneng’s lithium battery operating income was 6.5184 million yuan and a loss of 9,467,700 yuan.
In this regard, Wanhua Chemical said that this merger will help the company optimize its management structure, reduce management levels, and improve overall operating efficiency.
Wanhua Chemical Group Co., Ltd. is a state-owned holding company operating globally. Its business focuses on polyurethane, petrochemical, and fine chemicals, and is committed to providing high-performance new chemical materials. As a high-tech company with expertise in technological innovation, Wanhua has cultivated technological innovation as the company’s first core competitiveness, and has now developed into a global MDI manufacturer with leading technology, largest production capacity, and most comprehensive competitiveness. Advanced technology, complete supporting facilities, the most competitive propylene industry chain, as well as a large number of world-class new chemical materials and fine chemicals such as special amines, ADI, polyether, PC, TPU, surface materials, etc.
