Shandong Dongyue Organosilicon Materials Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Shandong Dongyue Organosilicon Materials Co., Ltd.

Shandong Dongyue Organosilicon Materials Co., Ltd., established in 1992, is a leading manufacturer in the organosilicon materials industry in China. The company is headquartered in Yantai, Shandong Province, and focuses on the research, production, and sale of silicone products. Over the years, it has positioned itself as a major player in the organosilicon market, driven by extensive investments in technology and capacity expansion.

In 2010, Dongyue went public on the Shenzhen Stock Exchange under the ticker symbol 300140. This move helped the company raise approximately 1.29 billion RMB (around 190 million USD) for further development and expansion.

Throughout the 2010s, Dongyue's revenue steadily increased, reaching 7.9 billion RMB in 2019, reflecting a compound annual growth rate (CAGR) of approximately 12% from 2015. The company’s growth can be attributed to the rising demand for silicone products across various industries, including construction, automotive, electronics, and consumer goods.

By 2021, Dongyue reported a revenue of 9.2 billion RMB, with a net profit of 1.23 billion RMB, showcasing its robust market presence and operational efficiency. In the first half of 2022, the company achieved a revenue of 4.5 billion RMB, indicating a year-on-year growth of 15%.

In terms of production capacity, Shandong Dongyue Organosilicon Materials boasts an annual capacity of approximately 300,000 tons of silicone products as of 2022. The company has continuously invested in technological upgrades, enhancing its product quality and production efficiency, thereby securing a competitive edge in the market.

As part of its sustainability efforts, Dongyue has been focusing on eco-friendly production methods, aligning with global trends toward sustainability. In 2021, the company invested 300 million RMB in research to develop sustainable silicone solutions. This investment is part of a broader strategy to address environmental concerns and meet the regulatory standards set by both domestic and international markets.

Shandong Dongyue has also expanded its international footprint, exporting to over 70 countries and regions. The company has established strategic partnerships, enhancing its distribution networks and increasing brand visibility in global markets. In 2020, exports represented approximately 30% of total sales, showcasing the company's growing international presence.

As of the latest financial reports, the company's market capitalization is approximately 20 billion RMB (around 2.9 billion USD), reflecting robust investor confidence and strong fundamentals. Dongyue continues to explore new markets and applications for its products, particularly in the health and technology sectors.

A Who Owns Shandong Dongyue Organosilicon Materials Co., Ltd.

Shandong Dongyue Organosilicon Materials Co., Ltd. is a publicly traded company on the Shenzhen Stock Exchange under the ticker symbol 002081. It specializes in the production of organosilicon materials, which are utilized across multiple industries including construction, automotive, and electronics.

As of the latest financial reports, the major shareholders include institutional investors, company executives, and other private entities. The following table summarizes the ownership structure of Shandong Dongyue Organosilicon Materials Co., Ltd.

As of the fiscal year ending December 2022, the company reported revenues of approximately RMB 3.5 billion, showcasing a growth rate of 15% year-over-year. Net income for the same period stood at RMB 550 million, translating to a net profit margin of 15.7%.

The stock performance of Shandong Dongyue Organosilicon Materials Co., Ltd. over the past year has shown resilience, with a return on equity (ROE) of 12% and a price-to-earnings (P/E) ratio of 18, indicating a relatively healthy valuation in the context of the industry average P/E of 20.

In terms of governance, the company’s board of directors consists of prominent figures from the chemical industry, enhancing its strategic direction and operational oversight. Executive compensation has been aligned with performance, with the CEO receiving a salary of approximately RMB 2 million along with performance bonuses linked to revenue targets.

Shandong Dongyue has maintained a competitive edge through continual investment in research and development, allocating about 8% of revenues to R&D activities, which has resulted in several new product launches and improvements in production efficiency.

Shandong Dongyue Organosilicon Materials Co., Ltd. Mission Statement

Shandong Dongyue Organosilicon Materials Co., Ltd., a prominent player in the organosilicon materials industry, emphasizes innovation and sustainable development in its mission statement. The company aims to be a leader in the research, production, and marketing of silicone products, focusing on advanced technology and environmental responsibility. Their mission embodies a commitment to high-quality products and customer satisfaction while upholding a dedication to sustainable practices.

Core Values

• Innovation: Continuously improving products and processes.
• Quality: Adhering to stringent quality standards to ensure the reliability of products.
• Sustainability: Promoting eco-friendly practices in production.
• Customer-Centric: Prioritizing customer needs and satisfaction.

Key Financial Metrics

In 2023, Shandong Dongyue reported a significant growth in both revenue and net income, highlighting its commitment to expanding its market presence. The company's operating margin showed a slight improvement, indicating efficient cost management alongside revenue generation.

Market Position

Shandong Dongyue holds a substantial market share in the silicone materials sector, competing with major firms like Wacker Chemie AG and Dow Inc. The company is recognized for its specialized products used in diverse applications, including construction, automotive, and electronics.

Recent Developments

• In September 2023, Dongyue launched a new line of eco-friendly silicone sealants, aligning with its sustainability goals.
• The company invested ¥200 million into expanding its production capacity for silicone rubber, enhancing output to meet increasing global demand.
• Collaborations with tech firms have driven innovation in specialty silicone applications for electronics.

Future Goals

Shandong Dongyue plans to further enhance its product portfolio and technological capabilities. The company is targeting a 15% growth in revenue by 2024, leveraging advancements in research and development and expanding into international markets.

Overall, Shandong Dongyue Organosilicon Materials Co., Ltd. demonstrates a robust financial profile, a progressive mission statement, and a strategic approach towards sustainable growth and innovation in the organosilicon domain.

How Shandong Dongyue Organosilicon Materials Co., Ltd. Works

Shandong Dongyue Organosilicon Materials Co., Ltd. is a prominent player in the global organosilicon industry, primarily engaged in the production of silicone materials. The company specializes in various silicone products, including silicone rubber, silicone oil, and silicone resin, catering to multiple sectors such as construction, automotive, electronics, and personal care.

In 2022, Shandong Dongyue reported a revenue of approximately RMB 7.12 billion, reflecting a year-over-year growth of 12.5%. The operating profit was around RMB 1.25 billion, with a profit margin of 17.5%.

The company’s production capacity has reached significant levels, with an annual capacity of over 300,000 metric tons of silicone products. This capacity is supported by a well-integrated supply chain, from raw material sourcing to distribution.

The primary raw materials for production include silicate materials and various chemical additives. Shandong Dongyue has invested in enhancing its production technology, leading to improved efficiency and reduced costs. In 2022, the company reported a 8% reduction in manufacturing costs due to these technological advancements.

According to the latest market research, Dongyue holds approximately 15% of the domestic silicone market share in China and is expanding its presence in international markets, targeting regions such as North America and Europe.

The company’s dedication to research and development is evident, with an annual investment of around RMB 200 million, accounting for 2.8% of its total revenue. This investment focuses on developing new products and improving existing formulations to meet customer demands and regulatory requirements.

In terms of financial health, as of the end of Q3 2023, Shandong Dongyue reported total assets worth RMB 10.5 billion and a net asset value of RMB 6.8 billion. The company’s debt-to-equity ratio stands at 0.45, indicating a solid balance sheet and manageable debt levels.

Shandong Dongyue is also committed to sustainability. The company has set a goal to reduce its carbon emissions by 20% by 2025 through enhanced production efficiency and waste management practices.

In summary, Shandong Dongyue Organosilicon Materials Co., Ltd. operates with a strong focus on innovation, market expansion, and financial stability, positioning itself as a leading manufacturer in the silicone industry.

How Shandong Dongyue Organosilicon Materials Co., Ltd. Makes Money

Shandong Dongyue Organosilicon Materials Co., Ltd. is a leading manufacturer in the organosilicon materials sector, focusing on producing silicone products. The company generates revenue primarily through the production and sale of various silicone derivatives, which find applications in numerous industries, including construction, textiles, automotive, and personal care.

In 2022, Shandong Dongyue reported a revenue of approximately RMB 5.5 billion (about $850 million), marking a year-on-year increase of 15%. The company’s operating profit for this period stood at around RMB 1.2 billion, reflecting an operating margin of 21.8%.

The core products include silicone oil, silicone rubber, and silicone resin. As of 2022, the breakdown of revenue by product type is as follows:

The company has established a robust distribution network both domestically and internationally, with exports constituting roughly 30% of total sales in 2022. Major markets include North America, Europe, and Southeast Asia, contributing significantly to its revenue streams.

In terms of cost structure, Dongyue's primary expenses are raw materials, labor, and logistics. The company reported raw material costs of RMB 3.0 billion in 2022, accounting for approximately 54% of total sales. This highlights the critical importance of maintaining strong supplier relationships and managing supply chain efficiency.

Moreover, the firm has been investing heavily in research and development (R&D) to enhance product offerings and derive innovative applications for silicones. In 2022, R&D expenditure was RMB 300 million, approximately 5.5% of total revenue, underscoring its commitment to innovation and competitive advantage.

Shandong Dongyue has also benefited from increasing demand for eco-friendly silicone products, aligning with global trends towards sustainable manufacturing. The company anticipates that its new biodegradable silicone line will further boost revenue, capitalizing on rising consumer preferences.

Financially, the company remains strong, with total assets estimated at RMB 8.2 billion and a net profit margin of around 12% in its latest reporting period. The company’s return on equity (ROE) stands at 18%, indicative of effective management and strong profit generation capabilities.

In conclusion, Shandong Dongyue’s business model revolves around diversified product offerings, efficient supply chain management, and a strong focus on R&D, driving sustainable growth and profitability in the highly competitive organosilicon materials market.