Huafon Chemical Co., Ltd.: history, ownership, mission, how it works & makes money

Huafon Chemical Co., Ltd.: history, ownership, mission, how it works & makes money

CN | Basic Materials | Chemicals - Specialty | SHZ

Huafon Chemical Co., Ltd. (002064.SZ) Bundle

Get Full Bundle:
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



A Brief History of Huafon Chemical Co., Ltd.

Huafon Chemical Co., Ltd., established in 2000, is a prominent Chinese enterprise primarily engaged in the manufacture and distribution of chemical products, particularly focusing on polyol and polyurethane materials. The company has grown significantly since its inception, becoming one of the largest players in the Chinese chemical industry.

By 2020, Huafon Chemical reported total revenue of RMB 10.23 billion, with a net profit of RMB 1.07 billion. The company’s continuous expansion was supported by its strategic investments in technology and production capabilities.

In 2018, Huafon Chemical initiated a major expansion project, increasing its production capacity for polyurethane products by 30%. This move was aimed at meeting the growing demand in both domestic and international markets.

Year Revenue (RMB billion) Net Profit (RMB billion) Production Capacity (tons)
2018 8.5 0.98 150,000
2019 9.2 1.03 180,000
2020 10.23 1.07 200,000
2021 11.0 1.15 230,000

By 2021, Huafon Chemical had established partnerships with major international brands, enhancing its market presence. The company focused on sustainable practices, investing approximately RMB 500 million in green technology initiatives aimed at reducing emissions and improving efficiency in its production processes.

In the first half of 2023, Huafon Chemical reported a revenue increase of 15% year-over-year, reaching approximately RMB 6 billion. The net profit during this period was reported at RMB 675 million. This growth was attributed to the increasing demand for eco-friendly materials in various industries, including construction and automotive.

Huafon Chemical is listed on the Shanghai Stock Exchange under the ticker symbol 603200. As of October 2023, the company's market capitalization stood at approximately RMB 22.5 billion.



A Who Owns Huafon Chemical Co., Ltd.

Huafon Chemical Co., Ltd. is a publicly traded company listed on the Shanghai Stock Exchange under the stock code 603497. As of the latest data, it has a market capitalization of approximately ¥44.5 billion.

Ownership of Huafon Chemical is divided among several key stakeholders, including institutional investors and individual shareholders. The following table illustrates the major shareholders and their ownership percentages:

Shareholder Ownership Percentage Type of Ownership
Huafon Group Co., Ltd. 51.23% Controlling Shareholder
China Securities Finance Corporation Limited 5.83% Institutional Investor
Other institutional investors 15.07% Institutional Investors
Public and retail investors 27.87% Individual Shareholders

As of the most recent fiscal year, Huafon Chemical reported total revenues of approximately ¥24.8 billion with a net profit margin of 9.6%. The company’s earnings per share (EPS) stood at ¥2.71.

In addition to domestic ownership, institutional investors from outside China are increasingly holding shares in Huafon Chemical. Foreign institutional ownership is estimated at around 4% of total shares. Major foreign investors include funds that focus on emerging markets and specialty chemicals.

The ownership structure is significant because Huafon Group Co., Ltd., as the controlling shareholder, influences strategic direction and corporate governance. This firm holds a strong position in the market with a focus on chemical production and a robust supply chain management system.

Furthermore, Huafon Chemical operates within the highly competitive chemical industry, which reported an average growth rate of 7.2% per annum over the last five years. This growth reflects the increasing demand for chemical products across various sectors, including textiles, automotive, and construction.

In terms of financial health, Huafon Chemical's return on equity (ROE) was recorded at 15.4%, indicating an efficient use of shareholder equity to generate profits. The company also boasts a low debt-to-equity ratio of 0.45, showcasing a stable capital structure and lower financial risk.



Huafon Chemical Co., Ltd. Mission Statement

Huafon Chemical Co., Ltd. is a leading manufacturer and supplier of polyurethane products, committed to providing high-quality chemical materials that meet the evolving needs of various industries. The company's mission focuses on innovation, sustainability, and customer satisfaction.

As of the fiscal year ending December 31, 2022, Huafon Chemical reported revenue of RMB 12.54 billion, exhibiting a growth of 15% year-over-year. The company's net profit reached RMB 1.02 billion, a significant increase from RMB 898 million in 2021.

To support its mission, Huafon Chemical emphasizes research and development. In 2022, the company invested approximately RMB 680 million in R&D, representing about 5.4% of its total revenue. This investment aims to enhance product innovation and sustainability practices, aligning with global trends towards environmentally friendly materials.

The mission statement also reflects Huafon's dedication to environmental responsibility. In 2022, the company reported a 20% reduction in carbon emissions per unit of production compared to 2021 levels. This aligns with their goal to achieve a 30% reduction by 2025.

In terms of operational scale, Huafon Chemical operates several manufacturing facilities across China, with a combined production capacity exceeding 150,000 tons of polyurethane materials annually. This extensive capacity allows the company to serve a diverse range of industries including automotive, construction, and textiles.

Year Revenue (RMB) Net Profit (RMB) R&D Investment (RMB) Carbon Emission Reduction (%)
2020 9.63 billion 750 million 500 million N/A
2021 10.91 billion 898 million 600 million N/A
2022 12.54 billion 1.02 billion 680 million 20%
2025 (Goal) Projected Growth Projected Growth Projected Growth 30%

As part of their strategic direction, Huafon Chemical aims to expand their market share both domestically and internationally. As of 2023, they hold a market share of approximately 15% in the Chinese polyurethane market, with ambitions to increase their presence in Southeast Asia and Europe.

The mission statement also emphasizes strong customer relationships, with a customer satisfaction index reported at 85% in 2022, reflecting effective service delivery and product performance.

In summary, Huafon Chemical's mission statement encapsulates their commitment to innovation, sustainability, and customer satisfaction, driven by significant financial results and operational capabilities.



How Huafon Chemical Co., Ltd. Works

Huafon Chemical Co., Ltd., established in 1995, is a leading manufacturer in the chemical sector, specializing in the production of polyurethane materials and related chemicals. Headquartered in Shanghai, China, the company operates several production facilities across the country.

The company focuses on a diverse range of products including polyurethane elastomers, coatings, adhesives, and specialty chemicals. In 2022, Huafon Chemical reported revenues of approximately RMB 12.5 billion (around $1.9 billion), demonstrating a robust growth trajectory in the competitive chemical market.

Huafon Chemical prioritizes research and development, investing over RMB 500 million annually to enhance product innovation and process optimization. This commitment has led to an extensive patent portfolio, with more than 300 patents granted in both China and internationally.

The company's supply chain strategy is pivotal to its success, characterized by vertical integration and strategic partnerships. This approach not only ensures a steady supply of raw materials but also enhances cost efficiency, allowing for better margin management. In 2022, Huafon achieved a gross margin of 27%, significantly higher than the industry average of approximately 20%.

Huafon's operations are segmented into three primary divisions:

  • Polyurethane Products
  • Specialty Chemicals
  • Environmental Protection Materials

The following table illustrates the revenue breakdown across these divisions for the year 2022:

Division Revenue (RMB Billion) Percentage of Total Revenue
Polyurethane Products 9.0 72%
Specialty Chemicals 2.5 20%
Environmental Protection Materials 1.0 8%

Huafon Chemical's commitment to sustainability is evident in its production practices. The company has implemented advanced technologies to minimize waste and reduce emissions. In 2023, Huafon reported a reduction of 15% in carbon emissions per unit of production compared to 2021 levels.

On the financial side, Huafon's net profit margin for the fiscal year 2022 was 10%, reflecting effective cost control strategies and strong market demand for its products. The company's total assets amounted to approximately RMB 18 billion as of December 31, 2022, showcasing solid financial health and operational capacity.

Huafon Chemical is also expanding internationally, with exports accounting for roughly 30% of its total sales. Key markets include Europe, North America, and Southeast Asia. The company's strategic focus on global expansion aims to capture increasing demand for high-performance materials in various industries.

Overall, Huafon Chemical Co., Ltd. operates through a combination of innovation, strategic partnerships, and sustainability, positioning itself as a competitive player in the global chemical industry.



How Huafon Chemical Co., Ltd. Makes Money

Huafon Chemical Co., Ltd., a prominent player in the chemical industry, primarily generates revenue through the production and sale of a variety of chemical products, including polyurethane and other specialty chemicals. In 2022, the company reported a total revenue of approximately RMB 22.44 billion, showcasing an increase from RMB 19.27 billion in 2021.

The company's product portfolio is diverse, comprising several key segments such as:

  • Polyurethane (PU) products
  • Functional polymers
  • Specialty chemicals
  • Coatings and adhesives

In terms of geographic revenue distribution, as of the latest reports, Huafon Chemical has seen significant revenue contributions from both domestic and international markets. In 2022, approximately 75% of its revenue was generated from the Chinese market, while 25% came from international sales to regions such as Europe and Southeast Asia.

Segment 2022 Revenue (RMB Billion) 2021 Revenue (RMB Billion) Year-on-Year Growth (%)
Polyurethane Products 10.5 9.0 16.67%
Functional Polymers 5.0 4.5 11.11%
Specialty Chemicals 3.5 3.0 16.67%
Coatings and Adhesives 3.44 2.77 24.14%

In addition to product sales, Huafon Chemical benefits from strategic partnerships and joint ventures that enhance its market reach. For instance, the collaboration with global firms has allowed the company to tap into cutting-edge technologies, thereby improving production efficiency and reducing costs.

Operationally, Huafon has invested significantly in R&D, amounting to around 3.5% of its annual revenue in 2022, which plays a crucial role in product development and innovation. The company's focus on high-performance materials and sustainability practices has positioned it favorably in the market, attracting a diverse client base across various industries such as automotive, construction, and electronics.

Market trends also influence Huafon Chemical’s revenue streams. The increasing demand for eco-friendly products and materials has prompted the company to expand its offerings in biodegradable and sustainable chemicals, a segment expected to see growth rates of over 10% annually for the next five years.

Overall, Huafon Chemical Co., Ltd.’s revenue generation is multifaceted, driven by product diversification, strategic partnerships, innovative R&D investments, and adaptability to market trends.

DCF model

Huafon Chemical Co., Ltd. (002064.SZ) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.