Specialty Chemical Manufacturing Sector in 2006
By CPCIA

The specialty chemicals manufacturing sector maintained steady
development in 2006. The growth of its major economic indexes
was more than 30%. According to data provided by the National
Bureau of Statistics, China had 5 512 specialty chemical
manufacturing enterprises of considerable scale (all
state-owned enterprises, and non state-owned enterprises with
sales over RMB5.0 million in 2005).The total asset value was
RMB306.501 billion, an increase of 21.82% over the previous year.
The sales revenue was RMB426.685 billion, an increase of 34.65%.
The total profit was RMB28.528 billion, an increase of 32.91%.
The total employment was 823 800, an increase of 6.94%.


Evaluation of the top 100 enterprises

(1) Overall economic index evaluation

The sales revenue of the top 100 enterprises was RMB147.107
billion in 2006, accounting for 34.48% of the sector's total.
The proportion was 25.69% in 2005. Their asset value was
RMB100.488 billion, accounting for 32.79%. Their total profit
was RMB10.779 billion, accounting for 37.78%.
   Among the top 100 enterprises, the sales revenue of the top
ten enterprises was RMB61.432 billion, accounting for 14.40% of
the sector's total. The company that held the first place was
Weifang Hongrun Petrochemical Company. Its sales revenue was
RMB7.503 billion. The second-ranked company was Shandong
Jincheng Petrochemical Group. Its sales revenue was RMB5.868
billion. The company that held the third place was Zhejiang
Risheng Petrochemical Company Ltd. Its sales revenue was
RMB5.121 billion.

(2) Regional analysis

Regarding regional distribution, in the specialty chemicals
manufacturing sector 92 of the top 100 enterprises are located
in the eastern region of China. Shandong, Jiangsu, Zhejiang,
Shanghai, Guangdong and Hebei provinces held the first six
places and are all in eastern coastal areas. Shandong province
hosts the most firms. Fifty enterprises in the province were
included in the top 100 enterprises. Their sales revenue was
RMB92.128 billion, accounting for 21.59% of the sector's total.
Jiangsu held the second place, with 17 enterprises in the
province included in the top 100. Their sales revenue was
RMB16.909 billion, accounting for 3.96%. Zhejiang ranked third.
Six enterprises in the province were included in the top 100
enterprises. Their sales revenue was RMB9.190 billion,
accounting for 2.15%. By contrast, only four enterprises in the
western region were included in the top 100 enterprises. Their
sales revenue accounted for only 1.21% of the total sales revenue
in the sector.

(3) Economic type analysis

In the top 100 enterprises, the sales revenue of state controlled
enterprises was RMB37.745 billion, accounting for 25.66% of the
total sales revenue in the top 100 enterprises. The sales revenue
of non state controlled enterprises was RMB109.362 billion,
accounting for 74.34%. The non state-owned economy already
became the main player in the specialty chemicals manufacturing
sector.
   State controlled enterprises accounted for 13% of the top 100
enterprises in number, but their sales revenue accounted for
25.66%. Nevertheless, regarding operating performance in
various ownerships, state controlled enterprises had evident
deficiencies. In the top 100 enterprises, the profit/sales in
state controlled enterprises was 7.76% and the profit/assets
ratio was 10.20%, being 3.18 percentage points and 7.47
percentage points lower than the private enterprise that held
the first place. The per-capita profit was RMB63 700, being the
lowest in various ownerships and RMB76 800 lower than the
foreign-funded enterprise that held the first place.

(4) Operating performance evaluation

The profit/sales, the profit/assets ratio and the per-capita
profit in the top 100 enterprises were 7.33%, 10.73% and RMB99
400 respectively, being 0.63 percentage points, 1.39 percentage
points and RMB64 800 higher than the overall level in the sector.
The company with the highest rate of profit/sales was Atotech
(Guangzhou) Chemicals Ltd. Its rate of profit/sales was 35.07%,
being 28.37 percentage points higher than the overall level in
the sector and 27.74 percentage points higher than the average
level in the top 100 enterprises. The company with the highest
rate of profit/assets was Shandong Longkou Double Dragon
Chemical Co., Ltd. Its rate of profit/assets was 127.13%, being
117.79 percentage points higher than the overall level in the
sector and 116.40 percentage points higher than the average
level in the top 100 enterprises. The company with the highest
per-capita profit was Shanghai Cabot Chemical Co., Ltd. Its
per-capita profit was RMB1.2385 million, being 35.79 times the
overall level in the sector and 11.46 times higher than the
average level in the top 100 enterprises.