Year-on-year growth of 118%! BASF, Dow, DuPont, and other chemical giants post explosive earnings! Which company is the most profitable?

Recently, major global chemical companies have successively released their full-year 2021 financial reports, with many achieving record-high performance. Abroad 01 BASF In 2021, BASF’s sales reached €78.6 billion (approximately $82.6 billion), up 33% year-on-year from 2020; earnings before interest and tax (EBIT) excluding special items amounted to €7.8 billion—a staggering 118% increase year-on-year—more than double the 2020 figure and up 67% compared to pre-pandemic 2019 levels. 02 Dow Inc. Dow’s full-year 2021 net sales totaled $54.968 billion (versus $38.542 billion in 2020); operating EBIT was $9.5 billion; full-year net income reached $6.311 billion (versus $1.225 billion in 2020). Profit margins rose across all operating segments; operating cash flow stood at $7.1 billion, and annual return on capital exceeded 22%. 03 DuPont DuPont’s 2021 net sales totaled $16.653 billion, up 16% year-on-year; net income was $6.467 billion (compared to a net loss of $2.951 billion in 2020); operating EBITDA was $4.2 billion, up 21% year-on-year; adjusted earnings per share for the full year were $4.30. 04 SABIC (Saudi Basic Industries Corporation) SABIC’s 2021 net profit surged 124% to $11 billion; free cash flow reached $10.75 billion (versus $4.91 billion in 2020); capital expenditures rose 18% year-on-year to $3.19 billion, primarily driven by increased activities related to crude oil output expansion, the Tanajib gas plant, and exploration drilling programs; its balance-sheet leverage remained robust, with a debt-to-asset ratio of 14.2% at end-2021 (down from 23.0% at end-2020). 05 LG Chem LG Chem’s 2021 sales totaled ₩42.6547 trillion (approx. $35.5 billion), up 41.9% year-on-year; operating profit reached ₩5.255 trillion (approx. $4.4 billion), up 178.4% year-on-year—both annual sales and operating profit hit new all-time highs. 06 LyondellBasell LyondellBasell’s 2021 revenue totaled $46.173 billion (versus $27.753 billion in 2020); full-year net income was $5.617 billion (versus $1.427 billion in 2020). 07 Linde Linde’s 2021 sales totaled $30.793 billion (versus $27.243 billion in 2020); full-year net income was $3.826 billion (versus $2.501 billion in 2020). 08 Air Liquide Air Liquide Group’s 2021 revenue totaled €23.335 billion (approx. $24.5 billion), up 13.9% year-on-year; full-year operating profit was €4.16 billion, up 9.8% year-on-year; full-year net income was €2.572 billion, up 5.6% year-on-year.

Behind DuPont’s antitrust investigation: The 'golden fiber'—long subject to technological blockade for 30 years—is finally breaking through.

1. Background ・Hot event: On April 4, China’s State Administration for Market Regulation launched an antitrust investigation into DuPont China Group. This chemical giant—which commands roughly half the global aramid fiber market—is now facing profound adjustments in the Chinese market. ・Market impact: Stocks linked to the aramid fiber industry rose against the broader market trend; Taihe New Materials and Minshida, for example, posted weekly gains of over 15%, as investors began betting on domestic substitution opportunities for these “bottleneck” materials. ・Industry trend: Driven by China’s strategy of self-reliance in high-end manufacturing, the aramid fiber industry—once monopolized by foreign firms—is undergoing a fundamental value reconfiguration. Data show that for aramid paper alone, domestic manufacturers are projected to recapture a ¥2-billion ($275 million) market share within the next three years. 2. Key Company Analysis Company 1: Taihe New Materials (Stock Code: 002254) ・Niche area: The only domestic company achieving leadership in both meta-aramid and para-aramid fibers. ・Thematic relevance: Controls 16,000 tonnes/year of meta-aramid capacity (60–70% domestic market share) and 16,000 tonnes/year of para-aramid capacity (40–50% domestic market share); deeply integrated with Minshida to secure full industrial-chain control. ・Key highlights: 1. Its bulletproof materials have passed military certification; unit price is triple that of standard aramid fibers. 2. A 4,000-tonne/year para-aramid project under construction is scheduled to commence operations in 2025, capable of meeting structural component requirements for domestically produced large aircraft. 3. Holds a 66% equity stake in Minshida, establishing a closed loop from raw materials to finished products. ・Potential opportunity: Should DuPont’s sales in China be restricted, Taihe could rapidly replace DuPont in the high-end protective equipment segment. Company 2: Tongyi Zhong (Stock Code: 688722) ・Niche area: Emerging as a new force in aramid paper via M&A integration. ・Thematic relevance: Completed acquisition of 75.8% equity in Supermeis in late 2024, adding 2,000 tonnes/year of aramid paper capacity. ・Key highlights: 1. Existing 5,000-tonne/year aramid fiber capacity ensures self-sufficiency in raw materials. 2. A 1,500-tonne/year aramid paper project under construction employs military-grade manufacturing processes. 3. Its products have been included in the State Grid Corporation’s list of approved insulation material suppliers. ・Potential opportunity: The electrical equipment sector consumes approximately 8,000 tonnes/year of aramid paper; the domestic substitution potential here amounts to ¥3 billion ($410 million). Company 3: Minshida (upcoming IPO) ・Niche area: World’s second-largest specialized aramid paper manufacturer. ・Thematic relevance: Commands 15% global market share; the only domestic producer capable of mass-producing aviation-grade aramid paper. ・Key highlights: 1. Current 3,000-tonne/year capacity operates at full utilization; a 1,500-tonne/year expansion project under construction targets demand from 5G base stations. 2. Product performance reaches 95% of DuPont’s Nomex® standard, yet sells at 20% lower price. 3. Parent company Taihe New Materials secures stable raw-material supply.