Rongsheng Petrochemical Enters The Field Of High-End Materials And Strives For Sustained Growth

In the first half of 2021, Rongsheng petrochemical company achieved a total revenue of 84.42 billion yuan, a year-on-year increase of 67.9%, and the net profit attributable to the parent company was 6.57 billion yuan, with a year-on-year increase of 104.7%.
Quick release of refining products from Zhejiang Petrochemical Co., Ltd

The first batch of atmospheric and vacuum distillation units of Zhejiang Petrochemical phase II have been put into operation in November 2020, contributing to the performance increment in the first quarter of 2021. In the first half of the year, the total revenue of refining products reached 27.41 billion yuan, up 105.3% year on year. According to Zhuo Chuang data, the average price of domestic gasoline in the second quarter reached 7780.7 yuan / ton, up 49.8% year-on-year and 15.9% month on month. The average price of diesel oil reached 6280.6 yuan / ton, up 18.8% year-on-year and 11.1% month on month. The company's gross profit margin of refined products in the first quarter of 2021 increased to 30.7% from 21.0% in the same period last year due to the high price of refined products combined with a large number of low-cost crude oil stocks purchased during the epidemic period. In addition, Zhejiang Petrochemical has obtained the first batch of refined oil general trade export quota of 2 million tons in 2021. As the world economic operation gradually returns to normal, the consumption of energy and power products is expected to recover, which will open a market for refining products of phase II of Zhejiang Petrochemical Company.
There is still a large space for the development of chemical products in the future
Driven by the rising crude oil price, a variety of chemicals entered the boom cycle. In the first half of 2021, the average price of PX is 815.4 US dollars / ton, with a year-on-year increase of 34.6%, pure benzene of 6582.5 yuan / ton, a year-on-year increase of 58.4%, and ethylene of 7661.9 yuan / ton, with a year-on-year increase of 39.4%. Zhejiang Petrochemical phase I and CICC have a total production capacity of nearly 16 million tons of chemicals, fully benefiting from the rising prices of chemicals. In the first half of the year, the chemical products revenue reached 32.29 billion yuan, a year-on-year increase of 75.2%, and the gross profit rate increased by 10.5 percentage points to 39.2%. Zhejiang Petrochemical phase II ethylene and ethylene glycol units have been successfully tested in April and June respectively, and there are still polypropylene, PC, photovoltaic material EVA and other devices to be put into operation. After Zhejiang Petrochemical phase II is fully put into operation, the company will have a chemical production capacity of nearly 26 million tons, with huge development space.
Profits of polyester filament repair film remain high
In 2021, the prosperity of polyester filament industry will reverse, and the gross profit margin of the company's filament products will be repaired. In the first half of the year, the gross profit of POY, FDY and DTY are 9.0%, 11.9% and 14.4%, respectively, which is 9.6, 9.6 and 12.3 percentage points higher than that in 2020. The gross profit margin of film products was 31.8%, 1.1 percentage points higher than that of 30.7% in the same period last year.