Yantai, Shandong – Wanhua posted CNY68bn ($10bn) annual revenue in 2019, down by 7% from 2018. Net profit fell by 35% to CNY10bn.
Net profit less non-recurring items decreased by 9% to CNY9bn, said the company’s annual report released on March 31. The disparity in non-recurring items mainly included CNY4.8bn less profit from its subsidiaries such as newly acquired diisocyanate maker Fujian Connell.
In 2019 Wanhua produced 2.7MT polyurethane related materials and sold 2.6MT. The company generated CNY32bn in sales, down by 19% from 2018. The segment’s profit margin dropped 9% to 41%.
‘This was mainly caused by prices falling back during the period,’ said the annual report.
Last year Wanhua had 2.1mT/year designed capacity for MDI and 550kT/year for TDI, which ran at 85% and 76% utilisation rates respectively. Its 1.83mT/year PO/AE facilities in Yantai had a 106% utilisation rate.
Nearly 56% of Wanhua’s total 2019 revenue came from the China market. In the MDI segment, the company claims a 40% China market share. Global MDI demand stood at 7.4mT in 2019, said the annual report.
Last year Wanhua spent CNY1.7bn, or 2.5% of revenue, on research and development. Employees in such positions accounted for 15% of the company’s total staff.