Synthetic Materials Manufacturing Sector in 2006

By CPCIA   

The development speed of the synthetic materials manufacturing
sector in 2006 was much slower than in 2005. According to data
provided by the National Bureau of Statistics, China had 1 718
synthetic materials manufacturing enterprises of considerable
scale (all state-owned enterprises, and non state-owned
enterprises with sales over RMB5.0 million in 2005). Their total
asset value was RMB288.627 billion, an increase of 7.50% over
the previous year. The sales revenue was RMB333.853 billion,
down 0.37%. The total profit was RMB9.562 billion, a drop of
46.33%. Total employment was 310 600, a drop of 0.56%.

Due to difficulties in calculation by segments, Sinopec Group,
CNPC, and Shanghai Huayi (Group) Company which actually ranked
first, second and third at the top of the sector, respectively,
were not included in the statistics above.

Evaluation of the top
100 enterprises

(1) Overall economic index evaluation

The synthetic materials manufacturing sector displayed a very
strong feature of industrial concentration in 2006 and the
advantage of large scale was very prominent. According to data
provided by the National Bureau of Statistics, the sales revenue
of the top 100 enterprises amounted to RMB210.231 billion,
accounting for 62.97% of the total in the sector.

(2) Regional analysis

In the synthetic materials manufacturing sector the top 100
enterprises are mainly located in the eastern region. Eighty of
them are headquartered in the eastern region. Regarding their
distribution by province (municipality or autonomous region),
Jiangsu held the first place - 24 enterprises in the province
ranked in the top 100 enterprises. The sales revenue of those
24 was RMB47.814 billion, accounting for 22.74% of the top 100.
Zhejiang ranked second - 12 enterprises in the province were
included. Their sales revenue was RMB28.286 billion, accounting
for 13.45%. Guangdong was third with 12 top 100 enterprises in
the province. Their sales revenue was RMB25.158 billion,
accounting for 11.97%.

(3) Ownership analysis

Regarding ownership in the synthetic materials manufacturing
sector, non state controlled enterprises developed well in 2006.
In the top 100 enterprises there were 30 state controlled
enterprises, accounting for 30%. Non state controlled
enterprises accounted for 70%. The sales revenue of state
controlled enterprises was RMB75.566 billion, accounting for
35.94% of the total sales revenue in the top 100 enterprises.
The sales revenue of non state controlled enterprises was
RMB134.665 billion, accounting for 64.06%.

(4) Operating performance evaluation

The operating performance of the top 100 enterprises played a
decisive role in the synthetic material manufacturing sector.
The leading effect of large-scale enterprises was fully
displayed. Their sound operating performance promoted the
development of the entire sector. The profit/sales, the
profit/assets ratio and the per-capita profit in the top 100
enterprises were 2.57%, 2.98% and RMB47 200 respectively. The
company with the highest profit/sales was Ningbo Wanhua
Polyurethanes Co., Ltd., at 26.23%, being 23.37 percentage
points higher than the overall level in the sector and 23.66
percentage points higher than the average level in the top 100
enterprises. The company with the highest profit/assets was
Shandong Zhaoyuan Petrochemical Plant, at 94.32%, being 91.01
percentage points higher than the overall level in the sector
and 91.34 percentage points higher than the average level in the
top 100 enterprises. The company with the highest per-capita
profit was Shen Hua Chemical Industrial Co., Ltd. Its per-capita
profit was RMB1.593 million, being 51.72 times higher than the
overall level in the sector and 33.75 times higher than the
average level in the top 100 enterprises.
   As data submitted by some enterprises are not calculated by
product, there was some overlap of statistical data between
various sub-sectors of the petroleum and chemical sector. If
data submitted by various sectors were added up, the sum would
surely be larger than the total amount calculated for the
petroleum and chemical industry as a whole. (CCR2007, No. 14)
The difference in the number of enterprises was the most
prominent. The sales revenue in the report submitted by
enterprises in various sectors only referred to the total sales
revenue of these enterprises in the petroleum and chemical
sector (excluding incomes such as investment). It did not
specifically refer to the sales revenue of these enterprises in
that particular sector. There was also some overlapping of
statistical data between enterprises and their controlling
shareholders. Yantai Wanhua Polyurethanes, Ningbo Wanhua and
Yantai Wanhua Group (the latter is not included in the statistics
of the petroleum and chemical sector) were examples. It was
entirely caused by the confused equity relationship in these
enterprises. Some enterprises were divided into two
subsidiaries in the statistics of the sector, but their
financial statements were combined in the statistics of
sub-sectors. Wuxi Xingda was an example. There were also some
small problems even CPCIA was unable to explain clearly. For
example, Jiangyin Xinheqiao Chemical Co., Ltd. and Shanghai
Lianji Synthetic Fiber Co., Ltd. that arose in the synthetic
materials manufacturing sector were not ranked on the due
positions in the whole petroleum and Chemical sector.


List of the Top 100 Enterprises in the Synthetic Material
Manufacturing Sector in 2006
No.  Enterprise
     Sales revenue (million RMB)
1    Xianglu Petrochemical Enterprise (Xiamen) Co., Ltd.
     8 699.9
2    Wuxi Xingda Foam Plastics Materials Co., Ltd.
    5 883.9
3    Ningbo LG Yongxing Chemical Co., Ltd.
    5 650.3
4    Yantai Wanhua Group
    5 200.0
5    Zhejiang Hualian Sunshine Petrochemical Company Ltd.
    5 050.2
6    Jiangsu Yabang Chemical Industry Corporation (Group)
     4 553.3
7    BP Zhuhai Chemical Company Ltd.
     3 977.9
8    Guangzhou Kingfa Science & Technology Company Ltd.
     3 975.2
9    Zhongyuan Petroleum and Chemical Company Ltd.
     3 945.8
10    Jiangsu Sanmu Group Corporation
    3 920.4
11    Maoming Petrochemical Shihua Company Ltd.
    3 765.1
12    Yibin Tianyuan Company Ltd.
     3 662.4
13    Hangzhou Longda Differential Polyester Company Ltd.
     3 073.2
14    Huafeng Group Company Ltd.
     3 039.9
15    Guangdong Xinhui Meida Nylon Co., Ltd.
     3 037.5
16    Shandong Yinhe Depreux Rubber Belt Co., Ltd.
    2 882.8
17    Jiangsu Jiangdong Chemical Co., Ltd.
    2 675.5
18    Shen Hua Chemical Industrial Co., Ltd.