Thread Content
●The new PVC production line is operating well. After acquiring the equity of Western Chlor-Alkali Company, the equity output will be* * Increase. The company currently has a PVC production capacity of 275,000 tons, of which the subsidiary Western Chlor-Alkali has 145,000 tons and the headquarters has 130,000 tons (100,000 tons is a new project in 2007, and the start-up is relatively smooth at present, and the total operating rate for the year is expected to reach 80%). Western Chlor-Alkali is an important source of revenue and profit for the company, and currently holds 43.71% of the shares. The company is preparing to raise funds from the allotment of shares to acquire all the Western Chlor-Alkali shares held by the group. After the acquisition is completed, the company will hold 84.47% of the equity of Western Chlor-Alkali, and the equity output will increase from approximately 100,000 tons in 2007 to approximately 230,000 tons. ●PVC production capacity is expected to increase to 500,000 in 2010, and the specific project investment plan depends on the funding situation. In terms of production capacity expansion, the company plans to increase production capacity to 500,000 tons in 2010. However, due to the current high asset-liability ratio (up to 80%), its investment plan for specific projects depends on subsequent funding conditions. In addition, the high debt ratio results in higher financial expenses. The company estimates that the full-year financial expenses will be approximately 90 million yuan without considering the allotment of shares. ●The industrial chain is complete and the recycling process route is advanced. The company's calcium carbide and electricity are supplied internally and are basically self-sufficient. Regarding the waste residue generated during the production process, the company originally cooperated with Maimai Industrial to produce cement, but the situation was not ideal. It is currently mainly used as a desulfurizer for waste gas generated during the power generation process, achieving zero emission of industrial waste. This technology is being applied for * * patent. As for hydrochloric acid, another product in the PVC production process, the company mainly sells it to its partners as a raw material for the production of L-lactic acid. Compared with other domestic chlor-alkali production enterprises, the company's recycling process route has strong competitive advantages. ●Coal resources have outstanding advantages, and the rapid rise in carbon prices has a greater impact on costs. Shizuishan City, where the company is located, is rich in coal resources and the price is very low. Coal is purchased locally at about 250-300 yuan/ton, which puts little pressure on costs. However, since the beginning of 2008, due to the elimination of small blue carbon enterprises with a production capacity of about 2.9 million tons in Shenmu, Shaanxi and other regions, the price of blue carbon has risen rapidly, from about 500 yuan/ton in 2007 to more than 1,300 yuan/ton currently, causing the cost of PVC per ton to rise by about 900 yuan (the company currently consumes about 300,000 yuan of blue carbon annually), and the gross profit margin has declined. ●PVC sales are good and profitability is better than the industry average. The company's current PVC sales situation is relatively good. Basically, it is in cash and in stock. The quantity of long-term orders is small, and the price is subject to market trends. Except for shipments to the company's warehouses in Tianjin, Shanghai, Guangzhou and other regions, the freight is borne by the customer. The current ex-factory price of PVC is about 7,900 yuan/ton, and the gross profit per ton is about more than 1,000 yuan. Regarding the PVC projects that may be launched in the future, the company said that sales will not be a problem. For caustic soda, another by-product of PVC production, the sales situation is also relatively stable. The current sales price of liquid alkali remains above 2,000 yuan/ton. ●The excessively rapid increase in production capacity in the PVC industry may have an impact on the company in the future. Since the calcium carbide PVC industry is currently profitable, new projects in various places are being launched quickly, which may have a certain impact on the company's market and sales prices in the future.