The competition faced by the chemical industry companies



The competition faced by the chemical industry companies is mainly reflected in the following aspects:

Market competition pressure: The chemical industry companies is fiercely competitive, with significant fluctuations in product prices. During the reporting period, the operating revenue of Northern Huajin was 9.161 billion yuan, a decrease of 3.05% from 9.449 billion yuan in the same period last year. Although the decrease is relatively small, this change still needs to be taken seriously in an increasingly competitive market environment.

Industry transformation: The chemical industry companies is facing a new cycle of transformation, mainly reflected in the acceleration of energy transformation, the penetration of AI intelligence and synthetic biology, and the core competitiveness of green and low-carbon. Chemical new materials will develop towards high-end, differentiated, and green directions.

The performance of segmented markets varies: in the first half of 2024, the overall operating revenue and net profit attributable to shareholders of the basic chemical industry companies both declined, but the net profit attributable to shareholders of more than half of the sub industries increased year-on-year. For example, sub industries such as nylon, rubber products, and compound fertilizers showed a significant month on month recovery trend in the first half of the year. In addition, the demand for new energy related chemical materials such as lithium battery materials and photovoltaic materials has significantly increased, demonstrating strong market demand.

Profit situation: In 2024, the overall operation of China's chemical industry companies is not good, and the profitability of production enterprises is generally decreasing. Among the 50 types of bulk chemicals, although most products are still profitable, the proportion of loss making products cannot be ignored. The profit margin of most profitable products is concentrated within 10%, while the profit margin of loss making products is also mainly concentrated within 10%.

The demand for high value-added materials is growing: High value-added materials such as carbon fiber and aramid are in high demand due to their widespread application in the aerospace and rail transportation fields, and the localization rate in the domestic market has increased to over 40%.