Jiangsu Eastern Shenghong Co., Ltd. (000301.SZ) Bundle
A Brief History of Jiangsu Eastern Shenghong Co., Ltd.
Founded in 2002, Jiangsu Eastern Shenghong Co., Ltd. has established itself as a prominent player in the textile and chemical industries. The company is headquartered in Jiangsu province, China, and operates primarily in the production of polyester and related products. Over the years, Shenghong has expanded its capacity and market reach significantly.
In 2011, the company accomplished a significant milestone by completing its public listing on the Shanghai Stock Exchange under the ticker symbol 000301. This move enabled Shenghong to access capital for further expansion and technological advancements. By 2020, the company's total assets surpassed RMB 30 billion.
As of 2022, Jiangsu Eastern Shenghong reported a revenue of RMB 60 billion, reflecting a year-on-year increase of 15% compared to 2021. The net profit for the same year reached RMB 3.5 billion, indicating a profitability growth trajectory in a competitive market.
Shenghong’s production capabilities are robust, with an estimated annual production capacity of 2 million tons for polyester products. The company has invested heavily in research and development, with an R&D budget that accounted for approximately 3% of its revenue in recent years.
In 2021, Shenghong completed a major project that increased its polyester fiber production capacity by 500,000 tons per year, positioning the company as one of the largest polyester manufacturers in China. As of the end of 2022, the company employed over 10,000 individuals across various positions.
| Year | Total Revenue (RMB) | Net Profit (RMB) | Total Assets (RMB) | Production Capacity (tons) |
|---|---|---|---|---|
| 2018 | RMB 40 billion | RMB 2 billion | RMB 25 billion | 1.5 million |
| 2019 | RMB 50 billion | RMB 2.8 billion | RMB 28 billion | 1.8 million |
| 2020 | RMB 52 billion | RMB 3 billion | RMB 30 billion | 2 million |
| 2021 | RMB 55 billion | RMB 3.2 billion | RMB 31 billion | 2 million |
| 2022 | RMB 60 billion | RMB 3.5 billion | RMB 32 billion | 2.5 million |
Jiangsu Eastern Shenghong has also been actively pursuing international markets. In recent years, the company has exported its products to over 30 countries, contributing to an export revenue that accounted for approximately 20% of its total sales in 2022.
Furthermore, the company has engaged in various strategic partnerships and joint ventures to enhance its technological prowess and expand its product portfolio. For instance, in late 2021, Shenghong entered a collaboration with a European textile company to innovate sustainable textile solutions, aiming to reduce its carbon footprint by 30% by 2025.
Overall, Jiangsu Eastern Shenghong Co., Ltd. has shown consistent growth and adaptability in the textile sector, continually investing in production capacity and technology improvements to remain competitive in a rapidly evolving global market.
A Who Owns Jiangsu Eastern Shenghong Co., Ltd.
Jiangsu Eastern Shenghong Co., Ltd., a leading player in the petrochemical industry, is primarily owned by Jiangsu Eastern Shenghong Group Co., Ltd. As of the latest financial reports, the ownership structure is as follows:
| Shareholder | Ownership Percentage | Number of Shares | Type of Ownership |
|---|---|---|---|
| Jiangsu Eastern Shenghong Group Co., Ltd. | 38.45% | 1,877,020,000 | Controlling Shareholder |
| Various Institutional Investors | 25.30% | 1,250,000,000 | Institutional Ownership |
| Public Float | 36.25% | 1,760,000,000 | Retail Investors |
The company has a total of approximately 4.87 billion shares outstanding. The market capitalization of Jiangsu Eastern Shenghong Co., Ltd. as of October 2023 is approximately CNY 57.2 billion (around USD 8.05 billion), reflecting its strong position within the industry.
In the latest annual report for the fiscal year ending December 2022, Jiangsu Eastern Shenghong reported revenues of CNY 82.3 billion (approximately USD 11.56 billion), a year-on-year increase of 12%. The company’s net profit for the same period stood at CNY 6.2 billion (around USD 878 million), which marked a significant growth compared to the previous fiscal year.
According to market analysts, Jiangsu Eastern Shenghong is a key contributor to the petrochemical market, with a production capacity of over 5 million tons of polyethylene and polypropylene combined. The company’s assets include several major facilities scattered across Jiangsu province, enhancing its logistical capabilities in the region.
The company has been actively engaging in international markets, with exports accounting for approximately 25% of its total revenues. This strategic move to diversify revenue streams is expected to further bolster its market position.
Jiangsu Eastern Shenghong Co., Ltd. is also noted for its commitment to sustainability, investing over CNY 1.5 billion (around USD 211 million) in environmentally friendly technology and practices over the last three years.
Jiangsu Eastern Shenghong Co., Ltd. Mission Statement
Jiangsu Eastern Shenghong Co., Ltd. is a leading player in the textile and chemical industry in China. The company's mission statement emphasizes its commitment to quality, innovation, and sustainability, highlighting a dedication to creating value for its customers through superior products and services.
The mission reflects a strategic approach aimed at enhancing customer satisfaction while promoting environmental stewardship and social responsibility. The company’s objective is to achieve technological advancement and operational efficiency, thereby establishing itself as a global leader in the textile and chemical sectors.
| Aspect | Details |
|---|---|
| Founded | 1993 |
| Headquarters | Jiangsu Province, China |
| Revenue (2022) | ¥38 billion |
| Net Income (2022) | ¥2.5 billion |
| Total Assets (2022) | ¥60 billion |
| Number of Employees | 5,000+ |
| Key Products | Textiles, Polyester, Chemical Fibers |
| Market Share in China | 10% |
| Export Percentage | 30% |
The company’s goals include expanding production capacity, improving product quality, and enhancing innovation capabilities. Jiangsu Eastern Shenghong Co., Ltd. also prioritizes corporate social responsibility by investing in sustainable practices that minimize environmental impact. In alignment with its mission, the company focuses on reducing carbon emissions and optimizing resource usage through advanced technology and efficient manufacturing practices.
Continuous improvement in R&D is a core focus, with investments exceeding ¥1 billion in innovative textile and chemical technologies during the past fiscal year. This commitment to research underscores the company's drive towards maintaining a competitive edge and meeting the evolving demands of global markets.
Overall, Jiangsu Eastern Shenghong’s mission statement succinctly captures its strategic vision and operational ethos, reinforcing its role as an influential entity in the textile and chemical industries both domestically and internationally.
How Jiangsu Eastern Shenghong Co., Ltd. Works
Jiangsu Eastern Shenghong Co., Ltd. is a significant player in the polyester and chemical fiber industries. Founded in 2001, this company has established itself as a leading enterprise in the production of various chemical products, including polyester chips, and synthetic fibers.
As of the end of 2022, Jiangsu Eastern Shenghong reported a total revenue of approximately RMB 62.44 billion, reflecting a year-over-year increase of 14.5%. The company's gross profit stood at RMB 9.78 billion, leading to a gross profit margin of 15.7%.
In terms of production capacity, as of 2023, Jiangsu Eastern Shenghong operates with an annual production capability of:
| Product Type | Annual Production Capacity (tons) |
|---|---|
| Polyester Chips | 1,500,000 |
| Polyester Filament | 1,200,000 |
| PTA (Purified Terephthalic Acid) | 1,000,000 |
| PET (Polyethylene Terephthalate) | 800,000 |
The company utilizes advanced manufacturing processes, including the latest in polymerization technology, which enhances the quality and efficiency of its production. This technological edge has contributed to a robust market position and sustained competitive advantage.
Jiangsu Eastern Shenghong’s operational efficiency is underscored by its operating profit, which reached RMB 8.52 billion in 2022, representing an operating margin of 13.6%. Moreover, the company reported a net profit attributable to shareholders of RMB 6.45 billion, showing a net profit margin of 10.3%.
On the balance sheet front, as of June 30, 2023, Jiangsu Eastern Shenghong's total assets were valued at RMB 78 billion, while total liabilities amounted to RMB 54.3 billion, resulting in a debt-to-equity ratio of approximately 0.69.
The company has actively pursued expansion strategies, including investments in environmentally friendly production technologies. In 2022, Jiangsu Eastern Shenghong committed RMB 5 billion towards enhancing its production facilities aimed at reducing carbon emissions by 20% by 2025.
Jiangsu Eastern Shenghong's stock performance on the Shenzhen Stock Exchange illustrates its market standing. As of mid-October 2023, the stock was trading at RMB 10.75 per share, reflecting a year-to-date increase of 25%.
The company’s financial resilience is demonstrated by its strong cash flow generation, which yielded approximately RMB 7.3 billion in operating cash flow in 2022. This healthy cash flow supports ongoing investment in capacity expansion and modernization projects.
Jiangsu Eastern Shenghong also places a strong emphasis on R&D, spending around RMB 1.23 billion annually, representing about 2% of its total revenue. This investment underlines its commitment to innovation within the polyester sector.
Overall, Jiangsu Eastern Shenghong Co., Ltd. operates through a well-integrated model that combines advanced manufacturing, strategic expansion, and a focus on sustainable practices, positioning itself favorably in the competitive landscape of the polyester industry.
How Jiangsu Eastern Shenghong Co., Ltd. Makes Money
Jiangsu Eastern Shenghong Co., Ltd., established in 1993, operates primarily in the chemical and textile sectors. The company engages in the production and sale of various products, including polyester, textile materials, and other chemical products. As of 2023, Jiangsu Eastern Shenghong has reported substantial revenue streams that contribute to its profitability.
In the fiscal year 2022, the company posted a revenue of approximately RMB 41.57 billion (around USD 6.03 billion), showcasing a significant increase compared to the previous year. This growth can be attributed mainly to the rising demand for polyester products and textiles in domestic and international markets.
Jiangsu Eastern Shenghong's product portfolio includes:
- Polyester Fiber
- Polyester Filament
- Textile Raw Materials
- Chemical Products
The pricing strategy adopted by the company is competitive; for instance, the average selling price of polyester filament was reported at approximately RMB 9,500 per ton in 2022. This pricing reflects the market dynamics influenced by demand and supply fluctuations, especially in the context of the global economy recovering from the impact of the COVID-19 pandemic.
To further analyze the revenue generation, below is a detailed breakdown of Jiangsu Eastern Shenghong's revenue sources for fiscal year 2022:
| Product Category | Revenue (RMB Billion) | Percentage of Total Revenue (%) |
|---|---|---|
| Polyester Fiber | 20.5 | 49.3 |
| Polyester Filament | 15.3 | 36.8 |
| Textile Raw Materials | 4.5 | 10.8 |
| Chemical Products | 1.3 | 3.1 |
The company has also invested in expanding its production capacity. In 2022, it reported capital expenditures of approximately RMB 2.1 billion to enhance its manufacturing facilities. This investment is expected to yield incremental revenue growth by increasing operational efficiency and meeting the rising demand for products.
Moreover, Jiangsu Eastern Shenghong has strengthened its market presence through strategic partnerships and collaborations globally. Its exports accounted for roughly 30% of its total revenue in 2022, with significant markets being Europe, North America, and Southeast Asia.
In terms of profitability, the net profit margin for 2022 was reported at approximately 8.1%, which is a noteworthy increase from 6.5% in 2021. This improvement in margins is largely attributed to cost control measures and better pricing power in the market.
Jiangsu Eastern Shenghong's future growth is projected to be influenced by several factors including market expansion strategies, product diversification, and adoption of sustainable practices in production to meet global environmental standards. The company is also exploring opportunities in high-tech materials which may significantly contribute to its revenue streams in the coming years.
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