On June 11, the Secretary of the Board of Directors of Rongsheng Petrochemical revealed in an interaction with investors: The second phase of Zhejiang Petrochemical is currently in the trial production stage. At the same time, on June 10, the official website of the Liuheng Management Committee of Zhoushan Islands New Area in Zhejiang made the second announcement of the environmental impact assessment of the “Zhoushan Green Petrochemical Base Expansion Zone Master Development Plan”.
On April 16 this year, Zhejiang Petrochemical No. The 1.4 million tons/year ethylene plant in phase 2 of the project produces qualified ethylene products. The plant is operating smoothly and the project was successfully started at the first try. Recently, good news came from Zhejiang Petrochemical Company. According to China Chemical No. 4 Company, the 2#800,000 tons/year ethylene glycol unit of the project (Phase II) constructed by China Chemical Company No. 4 was successfully commissioned and tested, with an output of qualified ethylene glycol. Glycol products. It is understood that the fourth company undertook the construction and installation of two sets of 800,000 tons/year ethylene glycol at 2#/3# in the second phase of the project, the installation of 1 set of high-density polyethylene equipment and the construction of some public works.
There has been a lot of news about Zhejiang Petrochemical recently. On June 10, Juhua Co., Ltd. (600160), a well-known domestic chemical company, issued an announcement saying that due to the short-term It was difficult to reach an agreement on the core terms of the transaction plan and decided to terminate the major asset restructuring matter. The termination of asset restructuring mentioned here refers to the chemical giant Zhejiang Petrochemical.
Earlier on September 18, 2020, Juhua Co., Ltd. stated that it planned to acquire Zhejiang Petrochemical held by Juhua by issuing shares and paying cash. Co., Ltd.; at the same time, the company plans to raise supporting funds from a non-public issuance of shares from no more than 35 specific investors.
It is worth noting that currently, Rongsheng Petrochemical is the largest shareholder of Zhejiang Petrochemical, holding 51% of the shares of the target company. If this reorganization is successfully implemented, Juhua Co., Ltd. will become the second largest shareholder after Rongsheng Petrochemical and tied with Tongkun Investment, which is a subsidiary of Tongkun Co., Ltd.
On September 18, 2020, Juhua Shares and the counterparty Juhua Investment signed a framework agreement, agreeing that the company intends to purchase Juhua through the issuance of shares and payment of cash Investment holds 20% equity of Zhejiang Petrochemical Company. Unfortunately, this acquisition unexpectedly ran aground.
Zhejiang Petrochemical was established on June 18, 2015. It is a subsidiary of Zhejiang Rongsheng Holding Group Co., Ltd., Tongkun Holding Group Co., Ltd., Juhua Group (Juhua The controlling shareholder of the company) and Zhoushan Marine Comprehensive Development Investment Co., Ltd. were invested and established. The above companies hold 51%, 20%, 20% and 9% of the shares respectively. Among them, the controlling shareholder of Juhua Investment is Juhua Group, and Juhua Shares is also a subsidiary of Juhua Group.
Zhejiang Petrochemical’s main business is petroleum refining. After the completion of its 40 million tons/year refining and chemical integration project, it will mainly produce 40 million tons/year of oil refining, With 10.4 million tons/year of aromatics and 2.8 million tons/year of ethylene products, the refinery capacity is expected to rank first in the country and among the top five in the world. Its process routes and technical equipment have reached the international leading level.
The 40 million tons/year refining and chemical integration project invested and constructed by Zhejiang Petrochemical is located in the Zhoushan Green Petrochemical Base, creating oil for the China (Zhejiang) Free Trade Pilot Zone It is an important supporting project to implement the “three bases and one center” development strategy. The project has a planned total area of 41 square kilometers and a total investment of 173 billion yuan. It will produce more than 20 petrochemical products such as National VI gasoline and diesel, jet fuel, paraxylene (PX), high-end polyolefins, and polycarbonate.
The project is planned at one time and implemented in two phases: the first phase has an annual processing capacity of 20 million tons of crude oil, an annual production of 5.2 million tons of aromatics, and an annual production of 1.4 million tons of ethylene. , has been completed and put into production at the end of December 2019. At present, the second phase of the project is accelerating the annual processing of 20 million tons of crude oil, the annual production of 6.6 million tons of aromatics, and the annual production of 2.8 million tons of ethylene.
After the completion of the third phase of Zhejiang Petrochemical Company in the future, its refining scale will rank second in the world, with a total scale of 60 million tons per year, second only to India’s Reliance Company’s Jamnagar combined refinery has a capacity of 62 million tons per year, ranking second in the world.
Earlier, on November 1, 2020, Zhejiang Petrochemical held a commissioning ceremony for the second-phase atmospheric and vacuum unit, marking the first batch of units of the second-phase project, including : Atmospheric and vacuum pressure and related public engineering equipment were officially put into operation. In October 2019, the construction of the second phase of the atmospheric and vacuum unit of Zhejiang Petrochemical Company officially started. Due to restrictions in the contract, materials, site, epidemic and other conditions in the early stage, the actual effective construction period of the atmospheric and vacuum unit was compressed to 8 months.
Juhua Group suddenly terminated its major asset restructuring just as the second phase of Zhejiang Petrochemical was about to start production, which shocked the market! Why exactly?
Although the acquisition of Juhua shares is regarded as an opportunity to strengthen the layout of the petrochemical industry, open up regional development space, and practice Zhejiang Province’s efforts to build a world-class green petrochemical advanced Strategic investment in manufacturing cluster policies is of great strategic significance.
But Juhua Co., Ltd. said that due to the asset size of the target company involved in this restructuring, The impact of the new coronavirus pneumonia epidemic and related prevention and control work arrangements has led to the extension of the relevant work hours involved in this restructuring, and the work of intermediaries to carry out target company audits, evaluations, on-site due diligence and other work has been affected by the impact of the new coronavirus pneumonia epidemic and related prevention and control work arrangements. Chemical shares failed to meet the stipulationsA notice of the general meeting of shareholders to review the reorganization will be issued within �� time.
Up to now, the financial status, profitability and operating conditions of the target company have changed significantly compared with the initial planning of this restructuring. The company’s stock price has been lower than the original pricing basis. The daily level has also changed significantly.
Therefore, it is difficult for both parties to reach an agreement on the core terms of the transaction plan in the short term. The conditions for continuing to promote this restructuring are not yet mature at this stage, and there are major uncertainties. Certainty. In order to effectively safeguard the interests of Juhua Shares and all shareholders, the company decided to terminate this restructuring matter after careful study and friendly negotiation with the counterparty.
However, Juhua shares stated that the termination of this transaction has no substantial impact on the company It will not have a negative impact on the company’s current production and operation activities and financial status, and will not harm the interests of the company and its small and medium-sized shareholders.
Observers said that Juhua Co., Ltd. is a long-established large-scale chemical company in China. It has made great achievements in the chemical industry and has a complete fluorine chemical industry chain. It is a leading enterprise in this field, and its fluorine refrigerant products are world-renowned. Juhua Co., Ltd. also has petrochemical product production capacity of 150,000 tons/year of caprolactam, 110,000 tons/year of cyclohexanone/year, and 50,000 tons/year of n-propanol, and has accumulated certain production and technical experience. A company-specific “benzene-cyclohexanone-caprolactam” industrial chain has basically been formed, with high brand recognition and market recognition.
Industry analysts believe that in recent years, Zhejiang Petrochemical’s profitability has been relatively good. Data shows that the first phase of Zhejiang Petrochemical’s “40 million tons/year refining and chemical integration project” has been fully put into production, driving performance growth. Zhejiang Petrochemical’s net profits in 2018, 2019 and the first half of 2020 were 7.1537 million yuan, 665 million yuan and 4.481 billion yuan respectively.
From 2014 to 2019, Juhua’s net profits were 164 million yuan, 164 million yuan, 154 million yuan, 917 million yuan, and 2.183 billion yuan respectively. yuan, 918 million yuan, of which the proportion of investment income in the consolidated net profit was 46.93%, 23.73%, 25.98%, 7.82%, 9.01%, and 10.58% respectively.
In 2020, Juhua’s total operating revenue was 16.054 billion yuan, a year-on-year decrease of 0.09%; the net profit attributable to shareholders of the parent company was 95.3752 million yuan, a year-on-year decrease of 89.39%.
According to predictions, the second phase of the Zhejiang Petrochemical Project will be fully After it is put into production, it is expected that the average annual operating income will be 190.566 billion yuan and the net profit will be 18.159 billion yuan. If the investment income is estimated based on this data, the investment income brought to Juhua Co., Ltd. by participating in Zhejiang Petrochemical is expected to reach 3.632 billion yuan. Unfortunately, Juhua Group did not successfully achieve this goal.
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