Yantai, Shandong – Wanhua showed a 76% year-on-year rise in 2017 revenue to CNY 53bn ($8.4bn). Other key financial metrics also grew compared with 2016.
Net profit more than tripled to CNY 11bn, same as its estimates in January, as UTECH-polyurethane.com reported at the time. Net assets attributable to the company’s shareholders rose by 84% from 2016 to CNY 27bn.
Wanhua sold 1.8 MT of polyurethane-related products in 2017. This contributed 56% of Wanhua’s total revenue, according to its annual report released in March. The segment had 55% gross margin in 2017, up by 15% from 2016.
‘There was strong MDI demand [in 2017] while a number of global MDI facilities were not in normal operation,’ said the annual report. ‘The product’s price kept rising and reached a record high (CNY 45,000/ton) in the China market in the third quarter.’
The company claims a greater than 20% share of the global MDI market in the report. It adds that the 300kT/year TDI project at its Yantai site is slated to come on stream in October.
Overseas markets accounted for 30% of the company’s 2017 revenue. These are less profitable for the business, which said its gross margin was 29%, down by 2% from 2016. In China, gross margin was 45%.
‘China has been upgrading its massive consumer market, which will drive the growth of MDI, TDI and waterborne coatings,’ the report added. ‘China’s ageing population, two-child policy and the trend of lightweight cars will also give more play to new materials.’
Last year Wanhua spent over CNY 1bn on research and development.
The report also warns that several new MDI facilities in China and the Middle East are scheduled to start up over the next two years. Regional protectionism could also bring uncertainty to Wanhua’s overseas operations. The company expects to see CNY 51bn revenue in 2018.
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