Soaring crude oil prices lead to a sharp increase in costs Hengli Petrochemical's revenue maintained steady growth

Hengli Petrochemical disclosed the third quarter of 2022 performance report on the evening of October 28, the company achieved operating income of 170.
357 billion yuan in the first three quarters, a year-on-year increase of 12.
46%, and realized a net profit attributable to shareholders of listed companies of 6.
087 billion yuan, a year-on-year decrease of 52.
12%.

Affected by the sharp rise in crude oil prices, the cost side of the petrochemical industry has risen sharply, coupled with the sluggish global economic growth, the continuous downturn in investment and consumption has affected terminal demand, the downstream inventory of petrochemical products has increased, the price gap of chemical products has continued to narrow, resulting in further compression of industry profits, and the petrochemical industry as a whole is also facing huge operating pressure
.
In this context, Hengli Petrochemical's operating income still maintained steady growth
.

It is worth noting that during the difficult period of the industry, the company recently issued a large shareholding increase plan, and the actual controller, controlling shareholder and their concerted actors of the company plan to increase their holdings of the company's shares by no more than 1.
5 billion yuan through centralized bidding transactions.

While the large-scale increase plan has aroused great attention and heated discussions in the market, it also fully shows that the company's controlling shareholders and actual controllers have firm confidence
in the company's future development prospects and growth value.

The company said in the third quarterly report that on the basis of the "big chemical platform" with unique advantages in the industry that deeply integrates "oil, coal and chemical", relying on the first and second phase of the fine chemical park project, it will accelerate the construction of a high-end fine chemical industry cluster, and actively promote the layout
of new energy and new material products including lithium battery separator, electrolyte, PET copper foil base film and photovoltaic backsheet base film.

Based on the advantages of industrial chain integration of its own "big chemical" platform, the company has accelerated the layout of high-tech barriers and high value-added incremental demand products, of which 1.
6 million tons/year high-performance resin and new material projects (including 200,000 tons/year battery-grade DMC) are expected to be put into production in the second quarter of 2023, and projects such as 800,000 tons/year of functional films and plastics, 600,000 tons of BDO projects, and 1.
6 billion square meters/year of lithium battery separators are in full swing
。 At the beginning of this year, the company invested in the construction of two major projects
, including a 1.
6 million tons per year high-performance resin and new materials project and an annual output of 2.
6 million tons of high-performance polyester project.

At the same time, the company is constantly promoting the planning, construction and landing of more blockbuster projects and products, and constantly growing, deepening and refining the downstream new chemical materials business sector
.
It is understood that major projects such as the second phase of the company's fine chemical park project and the second phase of the lithium battery separator project are also accelerating the pace of
planning demonstration and approval.

It is estimated that after all the above projects reach production, the net profit will increase by more than 10 billion yuan, which will greatly enhance the profit center
of Hengli Petrochemical.
In the short term, as the company's refinery resumes full operation, and international oil prices gradually pull back and stabilize, the company's entire industry chain anti-risk ability and flexible profit capture ability will also be further exerted, "refining + ethylene + new materials" the whole industry chain synergistic, the fourth quarter performance is expected to be greatly improved
.

In the next stage, the listed company will fully rely on the Dalian Changxing Island Petrochemical Industrial Park, which has world-class integrated production capacity, public and auxiliary supporting facilities and integrated management, through internal core technology research and development and external cooperation, deeply anchor the high-tech barrier, high value-added high-growth track, actively build the "Dalian Changxing Island" fine chemical and new materials industry chain ecosystem, and make every effort to build a platform-based leading enterprise
in the whole industry chain of chemical new materials research and development and manufacturing.