Jiangsu Shengao Chemical Technology Co., Ltd. achieved a significant increase in sales in the international market this year through the change from selling products to selling services. The picture shows that at the Eleventh China International Rubber Technology Exhibition held on the 22nd of this month, Jiangsu Shengao CEO Cai Qiqi is working with Indian guests. (CFP figure)
On November 15, more than 50 domestic chemical company bosses gathered in Kunming, Chuncheng. Among them, there are both top leaders of large domestic companies and presidents of foreign companies. They are both blatant and worried. All of them came to attend the annual meeting of the China Chemical News Council and also discussed how the company should develop in the future. Then how do the companies pass this year? What ideas do they have for the future development of the "Twelfth Five-Year Plan"? The reporter interviewed these bosses of chemical companies about these issues.
This year's flies are generally good. The reporter’s first concern is: How do companies feel when the “12th Five-Year†start?
"This year is pretty good. It started well. In the first three quarters, our operating income increased by more than 50% from last year. Last year, our operating income was nearly 4 billion yuan. We have achieved more than 6 billion yuan so far this year. We are profitable. It is also better than the same period last year, said Wang Junyan, Party Secretary of Shanxi Tianji Coal Chemical Group Co., Ltd.
“This year’s situation is relatively good. The sales revenue of the company in the first three quarters has increased significantly compared with the same period of last year. The production and operation status is good, especially in the new material and fine chemical sectors.†Chairman of Shanghai Huayi Group Co., Ltd. Jin Mingda Told reporters.
"We have had a good year this year. It is estimated that this year's sales revenue will reach 4.5 billion yuan, and the profit will be higher than last year." Chairman of Hebei Chengxin Co., Ltd. is also very happy.
"This year is good, all aspects are better than last year, and it is expected that the business plan formulated at the beginning of this year will certainly be fully over-completed by the end of the year." Wang Fengtao, general manager of Juhua Group, spoke of the company's development situation this year is very excited.
Fu Xiangsheng, deputy secretary of the Party Committee of China National Chemical Industry Group, told reporters that by the end of October, the total sales revenue and profits of China National Chemical Industry Group had increased by more than 30% year-on-year, especially in the first five months.
When asked by reporters, when there is such a good start, what the main reason is that the CEOs first expressed the same feeling: This year's rise in international crude oil prices led to the general increase in petrochemical prices, especially in the second quarter, the rapid growth, so companies The profitability has greatly increased.
In addition to this common factor, the reporter learned that during the interview, the company also had some personal experience.
Jin Mingda told reporters that in recent years, Huayi Group has persisted in implementing the “going out†strategy in China, accelerating the shift from a single Shanghai production base to multiple production bases in the country, and establishing industrial bases in areas with resources and markets, such as Anhui, In Inner Mongolia and other places, it has invested and built factories, and in the first three quarters of this year, these bases gradually began to release production capacity, which showed relatively good results.
“This year's Juhua Group focused its efforts on the implementation of the 12th Five-Year Plan of the enterprise. The favorable situation in the first three quarters of the company was mainly due to the landing of key projects. In particular, some new fluorinated workers have already started construction. Such as new fluorine refrigerants, new fluoropolymers, and food safety membranes for new materials, the implementation of these projects has increased the efficiency of the company, said Wang Fengtao.
Wang Junyan told reporters that due to the price increase of coal and phosphate ore, the raw material cost of enterprises increased by 200 million yuan. Under such circumstances, it is possible to achieve a 50% year-on-year increase in marketing revenue. Companies rely on strict internal energy-saving measures. For example, this year, the company transformed its aging equipment to achieve the best operating indicators and reduced energy costs, thus digesting the impact of raw material price increases.
At the meeting, Li Yongwu, president of the China Petroleum and Chemical Industry Federation, described the achievements of the entire industry in this way: In the first three quarters of this year, the petrochemical industry realized a total output value of 8.25 trillion yuan, an increase of 34.8% year-on-year, accounting for the national industrial output value of scale. 13.3%; Enterprises above designated size in the industry have realized a total profit of 618.5 billion yuan, an increase of 29.8% over the previous year; profits and taxes turned over have reached 612.3 billion yuan, a year-on-year increase of 25.7%. Among them, the chemical industry realized a profit of 288.9 billion yuan, a year-on-year increase of 50.7%, which was 23.7% higher than the average growth rate of national industrial profits. The petrochemical industry's investment in fixed assets was 951.2 billion yuan, a year-on-year increase of 19.2%; the total import and export volume of the entire industry was 450 billion US dollars, an increase of 33.5% over the same period of last year, which was higher than the national total import and export growth by about 9 percentage points. Among them, the import of 320.9 billion US dollars, an increase of 34%; exports of 129.2 billion US dollars, an increase of 32%; cumulative deficit of 191.7 billion US dollars, an increase of 36%.
The graph is the newspaper reporter is interviewing corporate CEOs at the meeting. (Reporter Zhang Yushe)
Fearing about the international market next year Although this year's enterprises have performed well, when talking about the development of the next few years, the bosses did not boast to reporters how many billion yuan will be earned next year. Instead, they expressed a concern.
"Today's good life does not mean that tomorrow there will be no risk!" Wang Fengtao's words represent the voice of many companies.
"Although the G20 summit reached a package agreement, it did not bring substantial benefits, because in March and July of this year, a comprehensive or final solution was reached and no practical results were seen. If the European debt crisis continues to spread, China This kind of export-oriented economy is certainly affected, and the export of companies will also be affected. So we expect the economic growth rate may not be as fast as it is now, and the overall will slow down.†Fu Xiangsheng said.
"Our company's products have exported 1/3 of the country's products. The major markets are Europe, India and Japan. Although we have not felt much impact, the share of some products has begun to shrink," said Xian Yingying.
“From July onwards, our sales of fluorine-containing refrigerants have declined.†Wang Fengtao said that the reason for the decline in sales was mainly due to the decline in external demand caused by the recession in the European and American economies.
In the interview, the reporter learned that on October 27th, just one month after the WTO decided that the US-China Tire Special Protection Case won the U.S. side, the United States made a preliminary ruling on the anti-dumping investigation of China Steel Wheels, and determined that China would transfer steel wheels to the United States. There is dumping behavior. "The United States' investigation into the double-reverse of heavy-duty tires will have an impact on the export of our tire companies. We must have a full estimate of the situation in the future and may not continue such a good momentum in the beginning," said Jin Mingda.
Wang Junyan told reporters that in October this year, the U.S. Senate passed the "Currency Exchange Rate Supervision Reform Act of 2011," requiring the government to impose punitive tariffs on major trading partners whose exchange rates have been underestimated in order to force the renminbi to appreciate faster. Like many fertilizer markets in Southeast Asia, the main market of the Tianji Group is not in Europe and the United States, but companies are deeply worried about the pressure brought by the appreciation of the renminbi.
Although there are concerns about the economic situation in the future, many CEOs of the company still maintain their optimistic views on the domestic market, especially those foreign companies.
“The economic recovery in the United States is slow and the European economy is mired in a quagmire. From the point of view of foreign companies, there is no better market in the world than China. In the past few years we have been reducing production capacity in Europe and the United States. New investment, because we are the most optimistic about the Chinese market." Ashland (China) Investment Co., Ltd., vice president of Asia Pacific Zhang Baochang said. He believes that the future Chinese market will have three opportunities for chemical companies. First, new consumption will emerge in China's economic transformation. The growth mode of the Chinese economy in the future will need to be driven by investment and driven by consumption. Along with this, it will bring huge market opportunities for chemical products, especially fine chemical products, targeting the consumer goods market. Second, China’s middle-income population is growing and demand is expanding. Third, China’s urbanization is on the way. It will certainly stimulate the consumption of related chemical products in the process of urbanization. This will be a very promising market. Now Ashland's four business units, including the development direction of special additives, water technology, high-performance materials and consumer goods market (Shengpai), are completely consistent with the overall energy conservation and environmental protection strategies proposed by the “Twelfth Five-Year Plan†in China. Ashland Specialty Additives' personal care products mainly meet the needs of China's growing middle-income population; and water treatment chemicals will greatly assist industrial water treatment and achieve clean drainage into river channels. It will help China achieve air and water quality improvement, and at the same time help solve the problem of scarcity of domestic water resources; various energy products of high-performance materials, such as chemicals in the fan blade market, can ensure production at a low cost. The large-scale fan blade adapts to the demand of China for the development of new energy for new materials; the various car care products in the consumer product market (Shengpai) are also in line with the huge development trend of car maintenance-related chemical products.
Hu Xiaodong, general manager of Albergo Chemical (Shanghai) Co., Ltd. China, also very much agree with this view. Hu Xiaodong elaborated his views on the case of flame retardants, one of Yabao Chemical's main products. "China's demand for flame retardants has only just begun. The market for flame retardants has only just opened, so companies are very confident about the flame retardant market. Many of China's product markets, like flame retardants, have not really started yet. There are many opportunities," said Hu Xiaodong.
Reliance on the "old method"
In the face of uncertainties in the future economy, how can we resist risks in the economic ups and downs and grasp potential market opportunities? What the reporter heard was a familiar word: Lian Gong.
“Innovating in technology and building high-end products can only seek opportunities in the market. The key to the “12th five-year plan†for giantizing “12th Five-Year Plan†is to develop middle-to-high-end products and prevent companies from falling into excessive competition at the low end.†Wang Fengtao said that R&D has always been a huge task. The advantages of chemical industry, the "Twelfth Five-Year Plan" should start with two aspects. One is to allow scientific research results to be industrialized as soon as possible, and the other is to mobilize the enthusiasm of R&D personnel, strengthen cooperation with domestic scientific research institutions, and accelerate the development of new products.
Lin Jiashan, president of Zhejiang Xin'an Chemical Group Co., Ltd., which is principally engaged in the business of pesticides and organic silicon, told reporters that most pesticides and organic silicon products in China are concentrated in the upstream of the industrial chain compared to foreign countries, but products with large profit margins Most of them are downstream. To create an industrial chain downstream to achieve docking with the terminal, on the one hand can increase the added value of products, on the other hand make the product more close to the market, the dependence of the company on the price will naturally weaken, so that it can effectively avoid the risks of external economic changes.
Jin Mingda told reporters that the “12th Five-Year†focus of the Huayi Group’s tire industry is technological upgrading, and it is necessary to firmly develop green tires and environmentally-friendly tires. “We have specific measures, on the one hand, to increase R&D investment, and on the other hand to introduce their technology and management through cooperation with foreign companies, so as to enhance our own technological level. Recently, we set up factories in cooperation with Michelin. Create high-grade passenger car tires," said Jin Mingda.
Jiangsu Shengao Chemical Technology Co., Ltd., the main rubber additive, has achieved a significant increase in sales in the international market this year. Cai Shengqi, CEO of Jiangsu Shengao, told reporters that in the past the company simply sold its products to middlemen or distributors at home and abroad and then sold them to overseas markets. However, in the most recent year, Jiangsu Shengao changed its sales methods, directly engaged in direct trade cooperation with large global tire manufacturers, established branch companies and logistics companies in the United States and Europe, and carried out business cooperation in accordance with the operating mode of overseas large tire factories. During this period, the user asked what types of rubber chemicals are needed in the tire development process, and then Jiangsu Shengao is responsible for helping customers develop. From the traditional sale of products to the sale of services, this new sales model has been recognized by foreign customers, but also brought more market share for Jiangsu Shengao.
The early sales methods of Xinan Chemical are relatively simple. Later, with the adjustment of industrial structure, it is increasingly important to strengthen the development of downstream products in the industrial chain and solve the problems of integration of R&D, production, and after-sales services. "Can no longer follow the original sales model, with the product structure changes, the way the market operates must change, we should go downstream to meet the needs of customers." Lin Jiashan said.
In this regard, Wang Fengtao very much agrees: “Originally we were 'sitting on business', we sat at home and sold products, waiting for customers to come to the door. Now we have launched a regional marketing system to send marketing personnel to various places to deal with customers. In terms of market development, on the other hand, we can better serve our customers."
“Calm down and think about it. The slowdown in growth does not necessarily mean that it is not a good thing. Many of our regions and many units have been excessively pursuing scale and pursuing the first place. If changes in the economic situation will slow down the pace of development, the mind will slow down. Slowly, it may be a good thing for the quality of growth and for the transformation of development methods.†Fu Xiangsheng said.
The reporter found that whenever there is a sign of trouble in the market, the "self-help" approach taken by Chinese companies is to exercise internal strength. This has become the "instinctive response" of Chinese companies. On the one hand, it shows that CEOs who are deeply influenced by Chinese traditional culture understand that it is better for people to rely on their own reasons than on their own. On the other hand, it also shows that Chinese companies’ “internal strength†indeed has great potential, especially with those who Envy and admiration compared to multinational companies.
Juhua Group seeks profits from energy saving and consumption reduction. The picture shows the employees of the company are recovering waste oil. (For CFP)
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