(1) Main business
The company is mainly engaged in research and development, production and sales of polyurethane series, petrochemical series, functional materials series and special chemicals series. Among them, MDI product is one of the most important raw materials for preparing polyurethane. Polyurethane has both advantages of rubber and plastic, and is widely used in chemical industry, light industry, textile, construction, home appliances, building materials, transportation, aerospace and other fields. At present, the company's MDI product quality and unit consumption have reached the international advanced level, and it is the largest MDI supplier in the world. In 20 13, in order to realize the strategy of "China Wanhua changed into a global Wanhua and Wanhua Polyurethane changed into Wanhua Chemical", the company was officially renamed as "Wanhua Chemical Group Co., Ltd.". The completion of the first phase of Wanhua Yantai Industrial Park marks that Wanhua Chemical has entered the fields of petrochemical products such as acrylic acid and ester, functional materials such as waterborne coatings and special chemicals, and will become the most competitive supplier of polyurethane, petrochemical products, functional materials and special chemicals in the future.
(2) Business model
Company's business model: Wanhua Chemical adheres to the road of professional development and always focuses on the development of new chemical materials. In order to give full play to the company's advantages in technology and manufacturing, the company mainly conducts B2B business. Purchasing method: The main raw materials needed for the company's production are pure benzene, coal, liquefied petroleum gas, etc. By actively exploring domestic and foreign supply channels, the company has established a good cooperative relationship with strategic suppliers, and comprehensively adopted various procurement modes such as fixed price, floating price and contract price, thus realizing stable supply of raw materials and low-cost procurement. Mode of production: The company has a wide range of products and complicated production routes, involving high temperature, high pressure and toxic and harmful processes. In order to ensure the "stable, long and excellent" production operation and provide customers with satisfactory, high-quality, stable and good products, the company adopts the localized production management of Ningbo production base, Yantai production base and Zhuhai production base, and the production operation mode of overall coordination by the headquarters. The company makes monthly production targets according to the annual production and operation plan, and makes dynamic adjustments according to the market demand and device conditions. Sales model: The company's main business is the production and sales of chemical and new material products, and the main products are sold in the market through direct sales and distribution. (3) The industry situation shows that the company's products are closely related to daily life, and the products are widely used in construction, household appliances, automobiles, light industry, textiles and other fields. In recent years, driven by the rapid economic development in China, the downstream application market of polyurethane has grown rapidly. With the advantages of technology, production capacity and product quality, Wanhua has firmly grasped the golden development period since China joined the WTO and grown into a leading MDI supplier in the world. Since the financial crisis in 2008, MDI products have experienced serious cyclical fluctuations. Aware of the risk of profitable products and single region, the company gradually shifted its investment focus to other diversified fields of new chemical materials, forming four industrial clusters of polyurethane, petrochemical, functional materials and special chemicals. The industrial chain and production are highly integrated, but the industry cycle is different.
Second,? Analysis of core competitiveness during the reporting period √ Applicable □ Not Applicable?
Scientific and technological innovation is Wanhua's core competitiveness. At the same time, the company constantly pursues excellent operation, creates excellent culture and forms Wanhua's unique comprehensive competitiveness.
(1) Technological innovation
Wanhua's technological innovation began at 1996. After trying to introduce foreign advanced technology but repeatedly hitting a wall, he realized that the technology that is truly competitive in the market cannot be bought. In the past 20 years, the company has established a perfect process R&D framework and project management mechanism, formed an innovative R&D system from basic research, engineering development, process optimization to product application, and successfully established the national polyurethane engineering technology research center, the national engineering laboratory of polymer surface material preparation technology, the national certified enterprise technology center, the enterprise postdoctoral research center and other industry innovation platforms.
(2) Excellent operation
Under the guidance of DuPont safety management system, Japanese Toyota Lean Six Sigma management system, SAP (Enterprise Management Solution) information management system, excellent performance management and other advanced concepts, Wanhua's operational efficiency and quality have been improved year by year. With the smooth commissioning of the first phase of Wanhua Industrial Park and the further increase of business complexity, the company's investment in enterprise safety management, production process optimization, information platform upgrade and management platform systematization is also increasing. Cost management has been continuously strengthened, employees' frugality awareness and lean management ideas have been further improved, and the company's annual key controllable management expenses have decreased by 20% year-on-year. The optimal allocation of human resources has been steadily advanced. Through the adjustment of talent stock and organizational functions, the 15 module has been streamlined, and the labor productivity has been further improved. At the same time, through the implementation of 243 mechanism, team standardization, operator post skill certification, new managers and supervisors promoted to classes and other fruitful work, the continuous improvement of employees' ability was promoted.
(3) Excellent culture
Wanhua's corporate vision is an enterprise that employees are proud of. Encouraging, attracting, retaining and cultivating talents with excellent corporate culture is the focus of company culture, and team spirit, professionalism, pragmatic style and gratitude culture are deeply rooted in people's hearts through continuous practice. Youliang's corporate culture ensures the professionalism of Wanhua employees and the stability of talents. Wanhua won the honor of Best Employer of Hewitt China for four consecutive years.
Section IV Discussion and Analysis of Business Situation
I. Discussion and Analysis of Business Situation In 20 16 years, the global economy grew moderately, the effect of supply-side reform in China began to appear, the macroeconomic operation continued to improve, the prices of bulk commodities, especially crude oil, rebounded significantly, and the prices of chemical products in China bottomed out. With the joint efforts of all staff, the company has achieved good business performance. However, in 20 16, the company had the most serious safety accident since its establishment, which caused four employees to die and four employees to be seriously injured, which sounded the alarm for the company's safety management.
(I) Marketing and Marketing In 20 16 years, the company successfully completed the management system reform of domestic divisions, and changed product line management into a management system combining product line, region and key account managers, which improved work efficiency and customer satisfaction. In 20 16, overseas MDI sales increased rapidly, and its market influence was further enhanced. Optimize the customer structure and strengthen the quality customer relationship in the Asia-Pacific, Middle East and Turkey markets; In the North American market, the company has increased its market development efforts in the field of board and composite wood. At the same time, overseas refrigerator ingredients, modified pavement materials, wood-based panels, automobiles and other high-end areas of new business and new customer development have also made progress, and the company's rigid foam system materials have successfully landed in the US market. 20160,000 petrochemical business will gradually establish new market rules by giving full play to the advantages of industrial chain, innovating cycle pricing operation mode, establishing Wanhua petrochemical industrial platform. At the same time, after four years of intensive cultivation in the international liquefied petroleum gas market, Wanhua was granted the right to recommend the price of Saudi Aramco CP from 2065438 to February 2006, and successfully entered the benchmark price decision-making committee of the Middle East liquefied petroleum gas industry, becoming the first China enterprise to obtain the right to recommend the price of CP. In 20 16, the company achieved the goal of centralized business support, collection, logistics and legal affairs in Yantai and Ningbo industrial parks through information transformation, process reengineering and refined management and control, and established a one-stop service hall, which reduced the frequency of internal communication among logistics, transportation and logistics support departments, reduced manual operation, significantly improved work efficiency and reached 98% on time arrival rate. The company's brand building ability has been improved. Judging from the company's strategic development and business development needs, the company organized a number of youth-oriented responsibility care activities by participating in large-scale exhibitions at home and abroad, combining traditional media and new media, and published nearly 200 publicity articles, further strengthening Wanhua's brand building in polyurethane industry and gradually establishing Wanhua's high-end corporate image in new industries such as coatings, adhesives, SAP and PC.
(II) Production and operation of Yantai Industrial Park and Ningbo Industrial Park In 20 16 years, Wanhua Yantai Industrial Park continued to improve the automation level of various production devices through the implementation of the Industry 4.0 project, and the operation of the two industrial chains became increasingly stable and the production capacity was effectively released. Guided by the strategy of "three modernizations and one low", Ningbo Industrial Park highlights the concept of refined management, takes "strictness, delicacy and practicality" as the basic work requirements, takes the technical management system, the equipment management and maintenance system of all employees and the standardization of team production as the starting point, and creates benefits through management innovation and high-quality and stable operation of the production chain. Through the implementation of Industry 4.0, the automatic control rate, interlocking rate and alarm rate of production devices have been greatly improved, and unplanned parking has been greatly reduced year-on-year.
(III) Technological Innovation In the past 20 16 years, the Institute has conscientiously implemented the company's business policy, constantly explored the company's forward-looking research and strategic direction under the new normal, accelerated the capacity building of transforming scientific and technological achievements into productive forces, and paid close attention to equipment optimization, and achieved remarkable technological innovation results. With the cooperation of many departments, the company's independent new products and technologies ushered in a bumper harvest year. After technical transformation and optimization, the production capacity of Ningbo HDI plant will reach 40 thousand tons/year, and the product quality will reach the international first-class level; The whole industrial chain of IP-IPN-IPDA-IPDI was completed and put into production, and Wanhua became one of the few enterprises in the world to master the core technology of isophorone products in the whole industrial chain. SAP and POP industrial devices were built and successfully started at one time, and the product quality was well received by customers. New products independently developed by MIBK, MMA and PMMA are being industrialized. At the same time, two pilot plants, HEMA and CDT, started smoothly, which made a good start for the industrialization of innovative products in Yantai Industrial Park. ? The product lines and functional solutions of various new chemical materials have been continuously improved. In the whole year, 25 new waterborne coating resins, TPU 199, SAP 1 1, CPU 28 and modified isocyanate 98 were listed. Among them, one-component self-crosslinking PUD was recognized by customers, which filled the blank in the industry, vegetable oil polyurethane won the Jung Award for coatings, water-in-water colorful coatings became the industry benchmark products, formaldehyde-free wood-based panel adhesives and system application solutions were basically finalized, polyurethane system materials for high-end pipes and containers entered the market and gradually gained favorable comments from customers, and quick-release polyether compositions for refrigerators reached the leading level in the industry. In terms of innovation system, the introduction of high-level innovative talents at home and abroad is quite effective. The organizational structure of Academia Sinica was optimized and adjusted, and a high-performance materials research center and a pilot center were established. New technology platforms and research teams such as water treatment and high-performance materials have been established, and the technical field has been further expanded. The company was selected as one of the "National Top 100 Innovative Enterprises Pilot Enterprises" evaluated by nine ministries and commissions, and was approved to set up the only "National Engineering Laboratory for Preparation Technology of Polymer Surface Materials" in the industry, and the popularity and influence of the company's technological innovation reached a new level. In terms of intellectual property rights, the company newly submitted 22 domestic and foreign invention patents 122, and 48 newly authorized invention patents. Through the implementation of patent protection, the construction of confidentiality system and the implementation of strategy, multi-level and all-round intellectual property protection measures have been formed.
(IV) Management Innovation In the past 20 16 years, the company has carried out a number of management innovations in finance, procurement, excellent operation and cultural construction, and achieved remarkable results.
(1) In 2016 years, the company raised funds through multiple channels, which met the fund demand for project construction and daily operation in time. The financing cost is lower than the benchmark interest rate of bank loans for the same period, which saves a lot of financial expenses for the company.
(2) Wanhua Chemical 16 successfully raised 2.5 billion yuan for the first time since its listing, and finally issued it at a premium of 2 1.55 yuan/share. The raised funds were received on June 6, 20 17. 2. Purchasing Management In 20 16 years, the purchasing department innovated the purchasing mode through the information platform to further reduce costs and increase efficiency: Wanhua established its own e-commerce purchasing platform; JIT has been widely used, and the packaging workshop can directly issue purchasing instructions to suppliers. SRM construction was basically completed, and the proportion of online bidding reached 66%. Strategic suppliers 1 1 was signed throughout the year, and the cumulative number of strategic suppliers 17. Through the above work, the procurement cost is reduced, the response speed and service level of suppliers are greatly improved, the workload of procurement personnel is reduced and the work efficiency is improved. 3. Excellent Operation 20 16 Company introduced the concept of "Industry 4.0" in time. By optimizing the production process and improving the automation level, the automatic control rate, interlocking rate, alarm rate and mechanical integrity level of Yantai and Nanjing production devices have been continuously improved, and all the indexes have reached and are at the international advanced level; Yantai Industrial Park has initially built a 4G information and communication network, which has become a demonstration project for the construction of smart parks in Shandong Province. Through the automation transformation of in-plant and out-of-plant logistics in each park, the one-stop service center and LMS logistics system are put into operation as a whole, and the system has realized all design functions and greatly improved customer satisfaction. The company integrated the product customer service team and the quality management team, and realized the efficient integration of customer service and quality management. 4. Corporate culture 20 16, Wanhua culture has been further improved and enriched. Based on the strategic needs of the company's international development, the VI system is redefined to adapt to the company's overseas image display, brochures, exhibition halls, etc. It was rebuilt and edited to fully display Wanhua's business card. Corporate culture goes deep into the front line of production, listens to the voices of employees and strengthens the propaganda of cultural concepts. Through internal publications, WeChat official accounts and other communication channels, through commenting on current events and analyzing hot spots, Wanhua culture is widely and deeply publicized and disseminated. At the same time, 69 couples participated in the "Thanksgiving Season" family day of Wanhua Chemical Group's wedding and the interaction between employees and their families, which was positively recognized by employees, their families and all walks of life, and enhanced their pride and sense of belonging.
Two. Main business During the reporting period of 20 16 years, the company achieved sales income of 3010 million yuan, a year-on-year increase of 54.42%; The net profit attributable to shareholders of listed companies was 3.679 billion yuan, a year-on-year increase of 65,438+028.57%; Earnings per share 1.70 yuan. At the end of 20 16, the company's total assets were 50.765 billion yuan, a year-on-year increase of 6.19%; The owner's equity attributable to the parent company was 65.438+04.822 billion yuan, a year-on-year increase of 28.09%; The company's weighted average return on equity was 28. 1 1%, up 13.44 percentage points year-on-year; Net assets per share was 6.85 yuan, up 28.04% year-on-year; The asset-liability ratio was 63.88%, down 5. 1 1 percentage point year-on-year.
(IV) Analysis of industry business information √ Applicable □ Not applicable
China's supply-side reform will be beneficial to innovative and standardized enterprises; People's requirements for environmental protection performance of home building materials are conducive to the promotion of MDI products for flour and wood-based panels; Aging, comprehensive two-child policy and light weight of automobiles provide new development space for new chemical materials. However, MDI devices will be built in China and the Middle East in the next two years, which will aggravate the contradiction between supply and demand in the Asia-Pacific region; China's economy has entered a new normal, demand has entered a stage of steady and low-speed growth, and the competition in the petrochemical industry is extremely fierce, while potential competitors are eyeing the MDI industry; The company's main products are bulk chemicals, and the price changes periodically, which challenges the stability of the company's profits; The rise of global trade protectionism has brought more uncertainty to the company's overseas operations.
Management information analysis of chemical industry
1 basic information of the industry
(1). Industrial policies and their changes √ Applicable □ Not Applicable 20 16 With the deepening of the "supply-side reform" and the implementation of the new environmental protection law, the state has also put forward the "Made in China 2025 Plan", which puts forward higher requirements for chemicals and new materials.
In view of the above situation, great changes have taken place in the chemical industry since 20 16:
1, a large number of uncompetitive low-level redundant construction capacity began to gradually withdraw.
2. A large number of small and medium-sized high-pollution chemical enterprises can't maintain production because their environmental protection is not up to standard.
3. The transformation and upgrading of the manufacturing industry and the acceleration of residents' demand have gradually shifted the upstream demand for raw materials to the high end. The above changes have brought great opportunities to Wanhua's business development. 20 16, the profitability of the company's polyurethane industry gradually recovered; Optimize the competitive pattern of petrochemical industry and enhance profitability; The market demand of functional materials and special chemicals industry is strong and keeps rapid growth.
(2). Basic information of major sub-industries and the industry status of the company √ Applicable □ Not applicable.
1. Polyurethane business segment: Polyurethane business includes isocyanate and polyol. Bulk isocyanates are divided into MDI and TDI. In the global MDI market, Wanhua has a market share of more than 20%, becoming the world's leading MDI manufacturer and leading the product quality industry; In China market, Wanhua has become a leading enterprise in the industry. Relying on the technology and production advantages of MDI, the company also plans to build a 300,000-ton TDI plant, which is expected to be put into operation in 20 18. 20 16 Annual Report 16/ 14 1 polyol is an indispensable product in polyurethane board, which has a strong synergistic effect with isocyanate. Since entering the field of polyols in 2006, Wanhua has developed into a polyol manufacturer with a full range of products.
2. Petrochemical business segment: The petrochemical business mainly develops C3 and C4 olefin derivatives. China has a huge demand for propylene. Wanhua Yantai Industrial Park is a leading manufacturing base of propylene and its derivatives in China, with a propylene production capacity of 750,000 tons. Wanhua also relies on the advantages of technological innovation to develop refined products with unique advantages and high added value on the basis of propylene derivatives such as acrylic acid, butanol and propylene oxide.
3. Functional materials business segment: In recent years, the company has invested a lot of R&D and marketing forces in the functional materials segment for technology and market development. In 20 16 years, this market segment achieved remarkable results, and related products ranked in the forefront of the industry: the downstream TPU products of polyurethane were diversified and customized, with good customer stickiness, and the downstream market was dominated by consumer goods such as automobiles and electronics, with steady growth in demand. At present, the company's market share in this product series is leading in China. In the future, the company will aim at the international market and domestic high-end market to achieve a double harvest of sales and profits. SAP business is a brand-new business based on the industrial chain advantages of Yantai Industrial Park. The first phase of 30,000 tons was completed and put into operation on 20 16. SAP is mainly used in diapers for infants and adults, sanitary napkins for women and water-retaining materials for agriculture and forestry. With the liberalization of the second child policy and the development of urbanization and aging, the popularity of diaper products will continue to expand. Wanhua Industrial Park has gathered the advantages of refined acrylic acid, caustic soda and other raw materials needed for SAP products, and it is uniquely endowed to develop the SAP industry. Personal computer business relies on Wanhua's advantages in phosgenation technology to develop high-end personal computer products different from other domestic enterprises. The first 70,000-ton plant will be put into production in the first half of 2065,438+07, and the production capacity will reach 200,000 tons by the end of 2065,438+08. PC is mainly used in automobile, electronic products, optical devices, packaging and other fields. It is an engineering plastic with the lowest self-sufficiency rate in China. Wanhua not only has the advantages of production technology, but also extends to the downstream plastic alloy on the basis of the existing material processing platform to provide customers with more diversified customized products.
4. The special isocyanate business in the field of special chemicals is the crown jewel in the field of isocyanate, including HDI, H 12MDI, IPDI and other major varieties. Wanhua is one of the few suppliers with a full range of products, and the products are quickly recognized by customers after they are put on the market. Special amine business is a unique business platform built by Wanhua based on hydrogenation technology platform, and now it has become a special amine manufacturer with complete product range and high technical level in China. With the continuous development of high-end epoxy fields such as wind power, electrical appliances and ornaments, it is expected that the industry will continue to grow rapidly in the next five years. The company is also actively developing other functional chemicals based on propylene industrial chain and isobutylene industrial chain, and will further expand the product line of this business segment in the future.