Shandong Shida Shenghua Chemical Group Company Limited: history, ownership, mission, how it works & makes money

A Brief History of Shandong Shida Shenghua Chemical Group Company Limited

Founded in 1973, Shandong Shida Shenghua Chemical Group Company Limited has established itself as a leader in the Chinese chemical industry. Headquartered in Shandong Province, it specializes in the production of various chemical products, including methanol, formaldehyde, and urea. The company has adopted advanced production technologies and is committed to sustainable development.

In 2002, Shida Shenghua was listed on the Shenzhen Stock Exchange under the ticker symbol 000830. This marked a significant milestone in its history, allowing the company to access capital for expansion efforts. As of the end of 2022, the company reported total assets of approximately RMB 22.8 billion and achieved revenues of around RMB 18.4 billion, demonstrating its robust financial performance.

In 2010, the company made a substantial investment of RMB 1.5 billion to enhance its methanol production capacity. This expansion effort increased their annual production capabilities from 1 million tons to over 2 million tons, allowing Shida Shenghua to solidify its position as one of the top methanol producers in the region.

Shandong Shida Shenghua Chemical has also focused on research and development (R&D) to innovate and improve its product offerings. The company invests about 3% of its annual revenue into R&D activities. In 2021, this translated to an investment of approximately RMB 550 million, which has resulted in the development of several new chemical products and environmentally friendly technologies.

The company's commitment to sustainability is reflected in its production methods. By implementing energy-efficient processes, Shida Shenghua was able to reduce its carbon emissions by 15% from 2018 to 2022, in line with China's targets for reducing greenhouse gas emissions.

The following table summarizes key financial metrics for Shandong Shida Shenghua Chemical Group over the past five years:

Shida Shenghua has also engaged in international trade, exporting its products to North America, Europe, and Southeast Asia. In 2022, exports accounted for approximately 18% of its total revenue.

Looking ahead, Shandong Shida Shenghua Chemical Group aims to further expand its production capacity and invest more heavily in sustainable chemical technologies, in alignment with global trends towards greener practices in the chemical industry. The company’s strategic plans include increasing its methanol production by an additional 500,000 tons by 2025.

A Who Owns Shandong Shida Shenghua Chemical Group Company Limited

Shandong Shida Shenghua Chemical Group Company Limited, listed on the Shenzhen Stock Exchange under the ticker symbol 000823, primarily operates in the chemical manufacturing sector, with a strong focus on chemical products and materials.

As of October 2023, the ownership structure of Shandong Shida Shenghua is characterized by a mix of institutional and individual shareholders. The major shareholders include:

• Shandong Shida Investment Group Co., Ltd.: Holds a controlling stake of approximately 37.68%.
• China National Chemical Corporation: Owns about 10.52% of the shares.
• Hong Kong Securities Clearing Company Limited: Holds 5.94% of the shares.
• Public Float: Approximately 45.86% consists of individual investors and other institutions.

The following table illustrates the detailed ownership distribution of Shandong Shida Shenghua as of the latest financial filings:

In terms of recent financial performance, Shandong Shida Shenghua reported a revenue of approximately ¥14.2 billion (Chinese Yuan) in its latest annual report for the fiscal year 2022, marking a year-on-year increase of 12.3%. The net profit for the same period stood at around ¥1.8 billion, representing a profit margin of approximately 12.7%.

The company's strategic focus on expanding its production capabilities and enhancing product offerings has contributed to its growing market capitalization, which currently exceeds ¥30 billion. The stock has demonstrated resilience, with a year-to-date increase of approximately 18% as of mid-October 2023.

Shandong Shida Shenghua Chemical Group Company Limited Mission Statement

Shandong Shida Shenghua Chemical Group Company Limited is committed to becoming a leading enterprise in the chemical industry by adopting advanced technologies and sustainable practices. The company's mission centers around innovation, quality, and environmental responsibility, aiming to create a better future through its chemical products and services.

The company focuses on the production and research of petrochemical products, with a strong emphasis on the development of high-performance materials. As of 2022, it reported revenue of approximately RMB 8.86 billion, reflecting a year-on-year increase of around 10%.

In terms of production capacity, Shida Shenghua has a significant presence in the chemical manufacturing sector. The company’s key products include urea, ammonium sulfate, and methanol. Here are some key figures from the company’s recent operational performance:

Shandong Shida Shenghua also emphasizes sustainability in its mission statement, aiming to reduce carbon emissions by 20% over the next five years. The company has invested heavily in green technologies, with a total investment of RMB 500 million in environmental protection initiatives as of 2023.

The company’s market position is bolstered by its strategic partnerships and continuous improvement in operational efficiencies. In 2023, Shida Shenghua reported a gross margin of 15% and a net profit margin of 8%.

Shida Shenghua is listed on the Shenzhen Stock Exchange under the ticker symbol 002580. As of October 2023, the stock price was approximately RMB 12.45, reflecting a 5% increase year-to-date.

Furthermore, the company is actively engaging in research and development, with an R&D investment representing about 3% of its total revenue, highlighting its commitment to innovation aligned with its mission statement.

How Shandong Shida Shenghua Chemical Group Company Limited Works

Shandong Shida Shenghua Chemical Group Company Limited, a significant player in the chemical industry, specializes in producing chlor-alkali products, polyvinyl chloride (PVC), and other chemical raw materials. The company operates several production facilities, primarily located in Shandong Province, China. Its product lineup includes chlor-alkali products, hydrochloric acid, and various chemical derivatives.

As of the latest financial report in 2022, Shandong Shida Shenghua reported revenues of approximately RMB 6.78 billion, reflecting a year-on-year increase of 15.2%. The net profit attributed to shareholders stood at RMB 1.2 billion, with a profit margin of 17.7%.

The company has a robust production capacity, which includes:

Shandong Shida Shenghua has invested heavily in research and development, allocating approximately 7% of its annual revenue to R&D initiatives. This has enabled the company to optimize production processes and develop new products, thereby enhancing its competitive edge in the market.

In terms of geographical reach, Shandong Shida Shenghua has expanded its operations not only within China but also internationally. The company exports its products to over 30 countries, including the USA, India, and several European nations. In 2022, exports accounted for about 20% of total revenue.

The operational efficiency of Shandong Shida Shenghua is evident in its production costs, which have decreased by 5% over the past year due to improved manufacturing practices and economies of scale. The company’s cost of goods sold (COGS) was reported at RMB 5.5 billion, leading to a gross profit of RMB 1.28 billion.

Financially, the company's balance sheet indicates a solid position with total assets amounting to RMB 10.6 billion and a current ratio of 1.8, signaling good liquidity. The company's debt-to-equity ratio stands at 0.5, indicating a balanced approach to leveraging.

Shandong Shida Shenghua's strategic focus on sustainability includes efforts to enhance energy efficiency and reduce environmental impact. In 2022, the company reduced CO2 emissions by 10,000 tons through the implementation of cleaner production technologies.

With these operational insights and financial metrics, Shandong Shida Shenghua Chemical Group Company Limited continues to solidify its position as a leader in the chemical manufacturing sector in China and abroad.

How Shandong Shida Shenghua Chemical Group Company Limited Makes Money

Shandong Shida Shenghua Chemical Group Company Limited, a publicly traded company on the Shenzhen Stock Exchange under the ticker symbol 000822, primarily generates revenue through the production and sale of chemical products. These products mainly include methanol, urea, and other derivatives used in various industries such as agriculture, pharmaceuticals, and manufacturing.

Revenue Breakdown

In 2022, Shida Shenghua reported total revenue of approximately RMB 15.6 billion, a significant increase from RMB 12.5 billion in 2021. The following table illustrates the revenue distribution by product line for the fiscal year 2022:

The company's methanol production capacity stands at approximately 1.2 million tons per year, which accounts for a significant portion of its total output. The rising global demand for methanol, particularly in the production of formaldehyde and various plastics, has bolstered sales, contributing around RMB 8.2 billion to revenues in 2022.

Cost Structure

Shida Shenghua's cost structure is predominantly influenced by raw material prices, energy costs, and labor. In 2022, the company reported a gross profit margin of 18.5% compared to 15.3% in 2021. Detailed costs associated with core products in 2022 are as follows:

Market Position and Strategy

The company holds a strong position in the Chinese chemical industry, benefiting from strategic partnerships and export opportunities. In 2022, approximately 25% of its products were exported to international markets, including Southeast Asia and Europe. This diversification has allowed Shida Shenghua to tap into higher pricing for certain chemicals not readily available in local markets.

Recent Financial Performance

In its latest earnings report for the first half of 2023, Shandong Shida Shenghua Chemical Group posted revenues of around RMB 9.5 billion with a net profit margin of 12.9%. The company anticipates continued growth, driven by an expected increase in methanol prices and expanding production capabilities.

Overall, Shandong Shida Shenghua Chemical Group's financial strategy focuses on optimizing its production processes, controlling costs, and expanding its market reach, enabling it to maintain a robust profit trajectory in the competitive chemical sector.