Jinneng Technology achieved revenue of 3.714 billion yuan in the first half of the year; it invested 20.3 billion yuan to develop a circular industry chain for \"PDH + carbon black\"

Thread Content

Jinneng Technology’s revenue in the first half of the year was 3.714 billion yuan; it invested 20.3 billion yuan to develop a circular industry chain based on PDH and carbon black. Author/Source: Coal Tar Deep Processing and Hydrogenation Technology Collaboration Group. Date: August 12, 2020. Clicks: 4. On August 10, Jinneng Technology released its interim financial results, showing that the company’s revenue for the period from January to June 2020 was 3.714 billion yuan, a 11.1% decrease compared to the previous year. The average revenue growth rate in the coal mining and processing industry was -5.20%； The net profit attributable to the shareholders of the listed company was 429 million yuan, representing a year-on-year increase of 9.31%; the average net profit growth rate in the coal mining and processing industry was -24.47%. The company stated that during the reporting period, it achieved total operating revenue of 3.714 billion yuan, a decrease of 11.10% on a year-on-year basis ； Operating profit was 493 million yuan, a year-on-year increase of 10.53% ； Total profit amounted to 501 million yuan, representing a year-on-year increase of 8.69% ； The net profit attributable to the shareholders of the listed company was 429 million yuan, representing a year-on-year increase of 9.31% ； The net profit attributable to the shareholders of the listed company, after deducting non-recurring gains and losses, was 375 million yuan, representing a year-on-year increase of 13.65%. This is mainly due to an increase in the profitability of the company’s key products. The company is in good financial condition, with a stable asset-liability structure; its assets exhibit strong liquidity and solvency. At the end of the reporting period, the company’s total assets amounted to 9.353 billion yuan, representing a 7.97% increase compared to the beginning of the year ； The owners’ equity attributable to the shareholders of the listed company was 6.269 billion yuan, representing a 6.37% increase compared to the beginning of the year. Currently, Jinneng Technology is building a project for the comprehensive utilization of new materials and hydrogen energy. The total investment in this project is 20.3 billion yuan. It utilizes the production processes and technologies of Lummus in the United States and Basell in Italy, as well as a unique domestic circular production model. The project includes facilities for propane dehydrogenation with an annual capacity of 900,000 tons, as well as projects for the recycling of green carbon black with a capacity of 8×60,000 tons per year; projects for high-performance polypropylene with a capacity of 2×450,000 tons per year; a project for propane dehydrogenation that also produces 260,000 tons of acrylonitrile and 100,000 tons of MMA per year; and facilities for storing raw materials. The JinNeng Technology New Materials and Hydrogen Energy Comprehensive Utilization Project was signed on January 19, 2018, and is located in the Dongjiakou Economic Zone of Qingdao West Coast New Area; it represents the 33rd project in the new area with a value of over 10 billion yuan. This project focuses on the development of three main areas: high-performance polypropylene, the co-production of MMA from acrylonitrile, and the comprehensive utilization of clean hydrogen energy. It involves substantial investment, a high level of technological sophistication, and promising market prospects, and will contribute to boosting the development of the real economy in the new area as well as to the establishment of a modern economic system. Jinneng Technology Co., Ltd. has developed a unique \"3+3\" circular economy industrial chain based on coking, and established a business model that combines coal chemical processing with fine chemical manufacturing. The various production lines are closely integrated to enable the recycling of resources, which gives the company a competitive advantage in terms of low costs and high profit margins for its core products in the areas of coke and carbon black; the gross profit per unit of these products ranks among the highest in their respective industries. The deepening supply-side reforms in the coking industry have led to an increase in coking prices, while the widening gap between coal and coking prices has created greater profit margins; the company has offset production cuts by compensating for it with price adjustments ； Improvements in the supply and demand fundamentals of the carbon black industry are expected to support the company’s performance in this sector. The new material and hydrogen energy integration project of Jinneng Technology, which involves an annual production capacity of 900,000 tons of propylene via PDH process and 480,000 tons of green carbon black, is expected to go into operation in April 2021. The circular economy industrial chain based on the \"PDH + carbon black\" model follows the same approach as that used at the headquarters, and it is anticipated to generate an annual net profit of 770 million yuan for the company. Once the project is put into operation, the petrochemical business will become another key driver of the company’s performance, in addition to coking and carbon black. The gross profit margin from propylene is likely to exceed 30%, representing a major factor for the company’s medium- to long-term growth. At the same time, the company’s carbon black production capacity will increase threefold, and improved quality will enable it to enter high-end markets, with the potential for an increase in its market share.