The market value of Wanhua Chemical is approaching 400 billion. What has this company done right?

As a leading enterprise in the chemical industry in Shandong, Wanhua Chemical (“Wanhua Chemical” for short) has been continuously increasing in market value recently. As of the close at 3 pm on July 7, Wanhua Chemical reported closing at 118.9 yuan, with a total market value of 373.347 billion yuan.

As we all know, Wanhua Chemical is mainly engaged in polyurethane (MDI, TDI, polyether polyol), ethylene, propylene and its downstream HDPE, LLDPE, PP, PVC, acrylic acid, propylene oxide and other series of petrochemical products, SAP, TPU, PC, PMMA , Organic amines, ADI, water-based coatings and other fine chemicals and new materials research and development, production and sales. In layman’s terms, this is a new chemical material company operating globally. Its products are widely used in the fields of building insulation, light industry and textiles, and automotive home appliances. At present, Wanhua has become the world’s largest manufacturer of polyurethane.

According to data, as of the end of 2020, Wanhua Chemical’s total assets reached 133.753 billion yuan, a year-on-year increase of 38.08%; sales revenue was 73.433 billion yuan, an increase of 7.91% year-on-year; net profit attributable to listed public shareholders was 10.041 billion yuan, a year-on-year decrease 0.87%; earnings per share are 3.2 yuan. In September 2019, the market value of this listed company was less than 140 billion yuan.

In less than two years, the market value of this company has approached 400 billion, and it has achieved substantial growth. People cannot help asking, what has Wanhua Chemical done right?

Figure / Wanhua Chemical’s main accounting data and financial indicators in the past three years

If you pay attention to the development path of this company in the recent period, you can find that it has been working hard in technological innovation and internationalization.

Just last month, Agilent Technologies, a leading company in the applied chemistry market, announced that it would establish a joint innovation experiment with Wanhua Chemical Group Co., Ltd. for a strategic cooperation between Wanhua Chemical and Agilent Technologies, aiming to focus on new materials and Energy and chemical related research. For Wanhua Chemical, which insists on scientific and technological innovation as the first core competitiveness, it is another landing of its corporate development philosophy.

Statistics show that since the establishment of a listed company in 1998, Wanhua’s investment in scientific research has not been capped. This policy has not been shaken even at the most difficult moment of the 2008 financial crisis. Wanhua Chemical also stated in its annual report that Wanhua will invest 2.05 billion yuan in scientific research in 2020 and will reach more than 3 billion yuan in scientific research in 2025.

And its larger handwriting comes from its investment of 6 billion yuan to build a world-class R&D center covering an area of ​​2,000 acres and accommodating 3,500 R&D personnel in Yantai Development Zone. This technical innovation team from basic research, process development, engineering development, device optimization to product application has injected development momentum into Wanhua Chemical.

In addition, Wanhua Chemical also frequently takes action in the globalization of scientific planning.

In addition to the establishment of three integrated chemical industrial parks in Yantai, Ningbo and Hungary, Wanhua Chemical’s integrated supporting capabilities for BC in Europe are gradually improving. Some people believe that with the improvement of BC’s upstream raw material supply capacity and the continuous extension of downstream industry chain capabilities, BC has become the company’s base camp for the implementation of its internationalization strategy in the European region.

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Wanhua also stated that it will grasp the trend of restructuring the global industrial chain, scientifically plan the global layout, and follow the trend of “chain” policy, and the upstream and downstream will cooperate with each other to “go global” to develop a multi-dimensional industrial chain network with close cooperation. , Strive to create a virtuous domestic and international cycle of supply and demand, and achieve more robust and sustainable development.

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