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

A Brief History of Jiangsu Huachang Chemical Co., Ltd.

Founded in 2001, Jiangsu Huachang Chemical Co., Ltd. has established itself as a prominent player in the chemical industry, particularly in the production of fine chemicals and specialty chemicals. The company is headquartered in Jiangsu Province, China, and operates several manufacturing facilities that enhance its production capabilities.

In 2010, Jiangsu Huachang was listed on the Shanghai Stock Exchange under the stock code 002274. The initial public offering (IPO) raised approximately 1.3 billion CNY (around 200 million USD at the time), which was utilized to expand its production capacity and enhance research and development efforts.

As of 2023, the company reported a revenue of 5.6 billion CNY (approximately 850 million USD), reflecting a year-on-year growth of 15%. The net profit for the same period stood at 720 million CNY (around 109 million USD), marking an increase of 10% compared to the previous year.

Jiangsu Huachang specializes in products such as polycarbonate, epoxy resin, and various chemical derivatives. The company has invested heavily in technology, with R&D expenses accounting for approximately 7% of total revenue. This focus has led to significant innovations in sustainable chemical processes and product enhancements.

In 2021, Jiangsu Huachang Chemical expanded its market reach by entering into strategic partnerships with various international firms, aiming to penetrate markets in Europe and North America. The company’s export ratio increased to 30% of its total sales, primarily due to the demand for its specialty chemicals in international markets.

The company has also prioritized sustainability initiatives. As of 2023, Jiangsu Huachang has reduced its carbon emissions by 20% over the last five years, aligning with global standards for environmental responsibility.

Looking ahead, Jiangsu Huachang plans to further expand its product line and diversify its offerings, particularly in the bio-based chemical segment, which is expected to grow significantly over the next decade. The company has set ambitious targets for revenue growth, aiming for a 20% increase by 2025.

A Who Owns Jiangsu Huachang Chemical Co., Ltd.

Jiangsu Huachang Chemical Co., Ltd. is a publicly traded company based in China, primarily engaged in the manufacturing and distribution of chemical products. The company's ownership structure primarily consists of institutional and individual investors. As of the latest data available in 2023, here is a breakdown of the ownership percentages:

The largest shareholder, with a stake of around 15%, is Jiangsu Huachang Group Co., Ltd., which directly influences the strategic direction and operational decisions of the company. The presence of institutional investors, which hold approximately 35% of the shares, indicates a significant level of market trust and professional oversight.

In the recent fiscal year, Jiangsu Huachang Chemical reported a total revenue of approximately ¥1.2 billion (around $182 million) and a net profit margin of 8%, reflecting its profitability amidst industry challenges.

The company has also undergone several corporate governance changes in the last two years, leading to increased transparency and shareholder engagement. Notably, in 2022, Jiangsu Huachang announced the appointment of four new board members, three of whom are independent directors, enhancing the board’s diversity and expertise.

As of the last trading day, the stock price was recorded at ¥18.50 per share, indicating a year-to-date increase of 12%. The stock is traded on the Shanghai Stock Exchange under the ticker symbol 600188.

In terms of market performance, Jiangsu Huachang has shown resilience, with earnings per share (EPS) reported at ¥1.20. The price-to-earnings (P/E) ratio stands at approximately 15.4, reflecting stable investor confidence compared to the industry average P/E of 18.

Overall, Jiangsu Huachang Chemical's ownership structure, combined with its financial performance and governance practices, positions it as a noteworthy player in the chemical manufacturing sector in China.

Jiangsu Huachang Chemical Co., Ltd. Mission Statement

Jiangsu Huachang Chemical Co., Ltd., established in 2002, aims to leverage advanced technology and innovation in producing high-grade chemical products. The company's mission focuses on sustainability and environmental responsibility while delivering superior chemical solutions to meet diverse industry needs.

As of the latest financial report in 2023, Jiangsu Huachang Chemical generated a revenue of approximately ¥2.5 billion (about $365 million), marking a year-on-year growth of 10%. The net profit for the same period was approximately ¥300 million (around $43.8 million), reflecting a profit margin of 12%.

In line with its mission, Jiangsu Huachang Chemical emphasizes its commitment to developing eco-friendly and sustainable chemical solutions. The company has invested over ¥500 million (approximately $73 million) in research and development over the last three years, focusing on green chemistry initiatives.

Furthermore, the company has expanded its global footprint, exporting to over 30 countries, with a significant presence in Europe and North America. In 2022, exports accounted for 40% of total sales, demonstrating the company's international competitiveness and commitment to quality.

Jiangsu Huachang Chemical's mission statement is also reflected in its operational efficiencies. The company has achieved a 15% reduction in energy consumption per unit of product over the last year through improvements in manufacturing processes. This aligns with their goal of minimizing environmental impact while maximizing productivity.

In pursuit of sustainability, Jiangsu Huachang has set clear goals for the next five years, including:

• Achieving carbon neutrality by 2030.
• Increasing the proportion of renewable energy sources in its operations to 50%.
• Strengthening partnerships with suppliers to enhance the sustainability of its supply chain.

The company's dedication to its mission is evident in its active engagement in community initiatives, contributing approximately ¥10 million (around $1.5 million) annually to local environmental projects and educational programs.

How Jiangsu Huachang Chemical Co., Ltd. Works

Jiangsu Huachang Chemical Co., Ltd. is a prominent player in the chemical industry, primarily engaged in the production and sale of fine chemical products and intermediates. The company operates various segments, including agrochemicals, specialty chemicals, and pharmaceutical intermediates.

The company’s revenue for the year 2022 was reported at approximately ¥2.5 billion (around $390 million), reflecting a growth rate of 12% compared to 2021. The corresponding net profit was around ¥300 million ($46 million), with a net profit margin of 12%.

Jiangsu Huachang’s operational strategy focuses on enhancing production efficiency while ensuring sustainable practices. The company has invested heavily in research and development, with a budget allocation of about ¥150 million ($23 million) in 2022, aiming to innovate new products and refine existing processes.

In terms of production capacity, the company has multiple manufacturing facilities with a combined capacity exceeding 100,000 tons annually. This capacity supports a diverse product portfolio, including:

• Agricultural Chemicals
• Industrial Solvents
• Pharmaceutical Intermediates
• Specialty Coatings

The company employs over 1,200 staff members, reflecting its commitment to human resource cultivation and operational excellence. Jiangsu Huachang has established partnerships with various industries, including agriculture and pharmaceuticals, which contributes significantly to its revenue stream.

As of October 2023, Jiangsu Huachang Chemical operates within stringent environmental regulations, complying with both domestic and international standards for chemical manufacturing. The company’s environmental management system is ISO 14001 certified, ensuring that it minimizes its ecological footprint while maximizing operational efficiency.

The global market trends indicate a growing demand for specialty chemicals, particularly in Asia-Pacific regions, presenting opportunities for Jiangsu Huachang to expand its market share. The company is strategically positioned to leverage this growth, focusing on developing value-added products to meet evolving consumer needs.

Financially, Jiangsu Huachang has maintained a healthy liquidity position, with a current ratio of 1.8 and a quick ratio of 1.5 as of 2022, indicating its ability to meet short-term obligations effectively. The company has also been reducing its debt-to-equity ratio, currently standing at 0.4, which reflects a solid capital structure and financial stability.

How Jiangsu Huachang Chemical Co., Ltd. Makes Money

Jiangsu Huachang Chemical Co., Ltd. is a notable player in the chemical sector, particularly in the production of fine chemicals and functional materials. The company generates revenue through various business lines, primarily focusing on specialty chemicals, adhesives, and resins.

For the fiscal year 2022, Jiangsu Huachang reported revenue of approximately RMB 1.2 billion, which marked a year-on-year increase of 15%. This growth can be attributed to increased demand for its products in both domestic and international markets.

The company's product offerings are diversified, which helps mitigate risks associated with fluctuations in specific markets. Some of the key product categories include:

• Polyurethane adhesives
• Epoxy resins
• Organic intermediates
• Functional coatings

Below is a breakdown of revenue by product category for the year 2022:

Jiangsu Huachang’s operational efficiency also plays a critical role in its profitability. The company reported a gross profit margin of 28% in 2022, illustrating effective cost control and favorable pricing strategies. Operating income for the same period was approximately RMB 180 million, reflecting an operating margin of 15%.

On the research and development front, Jiangsu Huachang invests about 6% of its annual revenue into R&D, amounting to RMB 72 million in 2022. This investment aims to enhance product quality and innovate new applications, ensuring competitiveness in the chemical industry.

Geographically, Jiangsu Huachang benefits from a growing export market. In 2022, around 30% of its revenue was derived from international sales, particularly in Southeast Asia and Europe. This expansion is supported by strategic partnerships and compliance with international quality standards.

The company also capitalizes on supply chain efficiencies, sourcing raw materials at competitive rates. For instance, the cost of raw materials decreased by 10% in 2022 due to favorable market conditions, contributing to improved margins.

In summary, Jiangsu Huachang Chemical Co., Ltd. generates revenue through a diversified portfolio of specialty chemicals, leveraging efficient operations, robust R&D investments, and international market expansion.