Representative companies in the industry: Sinopec, Satellite Chemical, Hengli Group, Zhejiang Petrochemical, Ningbo Fude, Hualu Hengsheng, etc.
Major listed companies in the industry: Rongsheng Petrochemical (002493.)SZ), Sinopec (600028SH), Hengli Petrochemical (600346SH), Hualu Hengsheng (600426SH), Shanghai Petrochemical (600688SH), Danhua Technology (600544SH), Xinjiang Tianye (600075SH), Dongfang Shenghong (000301SZ), Meijin Energy (000732SZ), Yangmei Chemical (600691SH), Satellite Chemistry (002648SZ), Yankuang Energy (600188sh) and so on.
China's ethylene glycol industry is an important chemical industry, ethylene glycol is an important organic chemical product, widely used in chemical, pharmaceutical, plastic, pesticide, coating, textile and other fields. The development of China's ethylene glycol industry has gone through a process from the initial stage to the mature stage, and has now become one of the countries with the largest ethylene glycol production capacity in the world.
The development of China's ethylene glycol industry has benefited from the growth of domestic and foreign market demand, as well as the promotion of technological progress and capacity expansion. With the increasing demand for ethylene glycol products in domestic and foreign markets, the production capacity and output of China's ethylene glycol industry are also increasing, making China one of the countries with the largest ethylene glycol production capacity in the world.
The development of China's ethylene glycol industry is also facing some challenges, such as overcapacity, environmental pollution, technological innovation and other problems. In order to cope with these challenges, China's ethylene glycol industry is accelerating the pace of technological innovation, improving product quality and reducing production costs, and promoting the development of the industry in the direction of high-end, intelligent and green.
China's ethylene glycol industry is highly competitive, mainly reflected in the following aspects. First of all, overcapacity is one of the main problems in the current ethylene glycol industry, and there are a large number of ethylene glycol production enterprises in the market, resulting in market overcapacity and fierce competition. Secondly, technological innovation and product quality is the key to enterprise competition, with the continuous progress of science and technology, enterprises need to continue to improve and innovate technology, improve product quality and reduce production costs, in order to occupy a place in the market. In addition, marketing and branding are also important aspects of competition between enterprises, and through active marketing and brand building, enterprises can enhance product awareness and competitiveness. In addition, environmental protection and safety production are also important aspects of enterprise competition, and enterprises that meet environmental protection standards and safety production capabilities are more favored by the market. Therefore, the competition in China's ethylene glycol industry is mainly reflected in production capacity, technology, market and environmental protection. Enterprises need to continuously improve their own strength in order to be invincible in the fierce market competition.
——Danhua Technology PK Elion Clean Energy Who is better in the field of ethylene glycol?
Danhua Technology PK Elion Clean Energy: Ethylene glycol business layout process
Ethylene glycol, also known as "glycol" and "1,2-ethylene glycol", referred to as EG, is a colorless and sweet liquid, as a very important bulk industrial product. Ethylene glycol is mainly used to make polyester, polyester, synthetic fiber and other products, and can also produce synthetic resin PET, fiber grade PET is polyester fiber, bottle flake grade PET is used to make mineral water bottles, etc. It is also used as an antifreeze for automobiles. The leading enterprises in China's ethylene glycol industry include Danhua Technology and Elion Clean Energy, and the layout of the two companies in the ethylene glycol business is as follows:
——Business performance: Elion Clean Energy's revenue scale is ahead of Danhua Technology
Judging from the operating income of the two companies, the overall operating income of Elion Clean Energy is larger than the overall revenue scale of Danhua Technology. From 2018 to 2021, the overall revenue of both companies showed a fluctuating downward trend. In 2021, Elion's overall operating income will exceed 12 billion yuan, a year-on-year decrease of about 4%, while the overall revenue of Danhua Technology will be about 1.1 billion yuan, an increase of about 1% year-on-year. As of the first quarter of 2022, Elion Clean Energy's overall revenue exceeded 2 billion yuan, while Danhua Technology's overall revenue was about 300 million yuan.
——Elion Clean Energy: The annual production capacity of ethylene glycol "sideline" is 400,000 tons.
Business performance: operating income fluctuated around 12.5 billion yuan
From 2018 to 2021, the company's operating income first declined and then stabilized at a level of about 12.5 billion yuan. In 2018, the company achieved revenue of about 17 billion yuan, which was the peak value in recent years, and then the revenue fell to 12.5 billion yuan, and in 2021, the company achieved operating income of more than 12 billion yuan, a year-on-year decrease of about 4%. As of the first quarter of 2022, the company's operating income was about 3 billion yuan.
On the whole, in the past two years, due to the downward trend of the chlor-alkali and polyester industries, the company's operating performance has been relatively averageAs the epidemic is gradually brought under control, the company's operating performance will improve.
——Corporate profitability: The company's ethylene glycol products are currently at the break-even point
Judging from the changes in gross profit margin, the company's ethylene glycol business has suffered losses in the past two years, and the situation has improved in 2021 and is at the breakeven point. From 2018 to 2021, the company's gross profit margin first decreased and then increased. In 2021, the gross profit margin of Elion Clean Energy's ethylene glycol business was approximately 05%。Overall, the company's current profitability is weak.
In the past two years, due to the downward trend of the chlor-alkali and polyester industries, the company's product market in the ethylene glycol industry has declined to varying degrees compared with the same period in previous years, which is also one of the main reasons for the company's unsatisfactory performance.
——Danhua Technology: Ethylene glycol performance is under pressure to seek diversified development.
Enterprise Business Operations: Ethylene glycol is the main business, and business revenue has increased
From 2018 to 2021, the company's business revenue first declined and then increased. 2018 is the peak value of the company's business revenue in the past two years, exceeding 800 million yuan;Subsequently, the company's ethylene glycol business revenue decreased year by year to about 4700 million yuan;By 2021, the company's business revenue will rise again, exceeding 600 million yuan, an increase of about 30% year-on-year. Combined with the proportion of ethylene glycol business, ethylene glycol is the company's main revenue**. As a result, the company's ethylene glycol business performance has improved, and the performance pressure has eased.
For more research and analysis of this industry, please refer to the "Analysis Report on the Development Prospects of China's Ethylene Glycol Industry and Investment Strategic Planning" by the Prospective Industry Research Institute, and the Prospective Industry Research Institute also provides solutions such as industrial big data, industrial research, policy research, industrial chain consulting, industrial mapping, industrial planning, park planning, industrial investment promotion, IPO fundraising and investment feasibility study, IPO business and technical writing, and IPO working paper consulting.