Analysis of Market status and Competition Pattern of basic chemical industry in 2022 In 2021, the annual performance of the chemical industry grew significantly

First, the chemical industry annual report and a quarterly summary

We included 372 listed companies in the chemical industry (classified by Shenwan chemical industry in 2021), sorted out the 2021 annual report and the overall development of the chemical industry in the first quarter of 2022 from the aspects of revenue scale, profitability, and operating conditions, and further analyzed 31 key sub-industries.

1.1 Performance analysis of chemical industry

Under the background of low base in 2020, the annual performance in 2021 increased significantly: in 2021, Shenwan chemical industry as a whole achieved operating income of 5.79 trillion yuan, an increase of 35.6%; Net profit attributable to the parent was 356.5 billion yuan, up 128.7 percent year on year.

Although some areas have been repeatedly affected by the epidemic since March 2022, the overall revenue and profit of the chemical industry in the first quarter still showed a synchronized upward trend: in the first quarter of 2022, the overall operating income of Shenwan chemical industry was 1.63 trillion yuan, an increase of 33.8%. Net profit returned to the mother was 105.7 billion yuan, up 31.2 percent year-on-year.

We set the revenue and net profit growth rate of listed chemical companies as high growth, 0-30% as stable growth, and less than 0 as negative growth, and obtained 173 companies with high revenue growth in 2021, an increase of 137. There were 168 stable growth companies, 16 fewer than the same period last year. There were 31 negative growth companies, 121 fewer than the same period last year. The net profit of 194 companies achieved rapid growth, an increase of 62; There were 73 stable growth companies, a decrease of 38; There were 105 negative growth companies, a decrease of 24 year-on-year. The number of high-growth companies increased significantly year-on-year, the number of negative growth companies decreased significantly year-on-year, and the supply and demand of the industry promoted the income and profit of chemical enterprises to achieve rapid growth, so the number of corporate performance growth also reached a historical high.

In the first quarter of 2022, 126 companies achieved high revenue growth, a decrease of 109; There were 173 stable growth companies, an increase of 53 over the same period last year. There were 73 negative growth companies, an increase of 56 year-on-year. The net profit of 146 companies achieved rapid growth, 104 fewer than the same period last year; There were 69 stable growth companies, down 8 year-on-year; There were 157 negative growth companies, an increase of 112 year-on-year. The same ratio of the number of high-growth companies declined significantly, and the number of stable growth and negative growth companies rebounded, indicating that on the one hand, the production and operation of enterprises were still affected to a certain extent in the context of the repeated epidemic in the first quarter of this year. On the other hand, the high volatility of commodity prices this year has led to the narrowing of profits of chemical companies.

The product price index of the chemical industry fell in the fourth quarter of last year, and has shown a rebound trend this year. Since the third quarter of last year, with the release of the policy of limiting electricity and production, the price index reached a historical high of 6467 points on October 19, and then with the fading of the influence of the policy, the price index showed a continuous decline. Since the beginning of this year, under the influence of high fluctuations in commodity prices and the outbreak of the Russian-Ukrainian war, the price index of chemical products has entered a new round of rising cycle, and the CCPI price index reached 5793 points by March 31, 2022, an increase of 11.7% compared with the beginning of the year.

The traditional domestic demand has fallen, the demand for new energy has increased significantly, and the new chemical materials sector is expected to continue to benefit. In the real estate industry, affected by the relevant policies of "housing without speculation", the year-on-year growth rate of new housing construction area began to fall sharply after the second quarter of last year, and the growth rate of new housing construction area fell from a high of 64.3% in February to -17.5% in March this year. Textile and garment industry, in the first half of last year, the textile and textile garment industry began to recover from the low point, the prosperity index rose from 47.97 in February to 51.82 in July and continued to decline, and the prosperity in February this year bottomed out and rebounded slightly, reaching 49.08 in March, although there is a recovery but it is still at a low level compared with last year. In the automotive industry, the overall output growth of the industry in the context of repeated epidemics this year is limited, and the cumulative output growth rate in the first quarter of this year is only 4.9%; However, the growth of new energy vehicle plate is still extremely outstanding, and the cumulative output growth rate in the first quarter of this year is as high as 140.8%. In terms of agricultural product prices, agricultural prices also showed an upward trend this year against the backdrop of high commodity prices. Overall, it seems that the growth of the new energy vehicle and photovoltaic industry is still relatively significant, and it is expected that the current high growth trend will continue under the long-term support of the dual-carbon policy, and the related chemical new materials field can achieve rapid growth with the help of excellent tracks.

1.2 Analysis of profitability of chemical industry

Gross profit margin: The overall gross profit margin of the industry in 2021 will be 20.4%, an increase of 1.2% year-on-year; 2022Q1 The overall gross profit margin of the industry was 20.2%, down 1.5% year-on-year.

Net interest rate: The overall net interest rate of the industry in 2021 is 6.8%, an increase of 2.7% year-on-year; 2022Q1 The overall net interest rate of the industry was 7.2%, down 0.2% year-on-year.

Overall, in 2021, under the background of the impact of the 2020 epidemic, the profitability of the chemical industry has significantly improved; In the first quarter of 2022, because of the repeated epidemic and high fluctuations in raw material prices, the profitability of the industry has fallen.

Expense management capabilities were optimized, and the industry's period expense rate continued to fall. Sales expense ratio: In 2021, the sales expense ratio of the chemical industry was 1.94%, down 0.88% year-on-year; Sales expense ratio in 2022Q1 was 1.69%, down 0.89% year-on-year. Overhead rate: In 2021, the overhead rate of the chemical industry was 2.72%, down 0.68% year-on-year; 2022Q1 was 2.22%, down 0.80% year-on-year. Financial expense ratio: The financial expense ratio of the chemical industry in 2021 is 0.85%, down 0.32% year-on-year; 2022Q1 was 0.72%, down 0.23% year-on-year.

1.3 Operational efficiency of the chemical industry

The overall inventory and accounts receivable scale of the industry has been greatly improved, and the efficiency of use also needs to be improved. In 2021, the total inventory of the industry increased by 48% year-on-year to 660.4 billion yuan, and the number of days of inventory turnover decreased by 5 days year-on-year to 44 days; The scale of accounts receivable increased by 27% year-on-year to 303.9 billion yuan, and the turnover days of accounts receivable decreased by 3 days year-on-year to 17 days. 2022Q1 The total inventory of the industry increased by 50% year-on-year to 786.3 billion yuan, and the number of inventory turnover days increased by 4 days year-on-year to 50 days; The scale of accounts receivable increased by 33% year-on-year to 391.4 billion yuan, and the turnover days of accounts receivable decreased by 1 day year-on-year to 19 days.

1.4 Asset scale and leverage ratio of chemical industry

Fixed assets and construction under construction: The chemical industry fixed assets growth rate rose from a relatively low in 2020, reached 10.6% in 2021, and increased to 13% in the first quarter of 2022; The growth rate of the same ratio of construction in progress continued to pick up after 2019, reaching 38.9% in 2021 and falling slightly to 35.1% in the first quarter of 2022. From the data of the proportion of projects under construction, it fell to a relatively low 8.5% in 2020, began to pick up significantly in 2021, and reached 9.5% in the first quarter of 2022, indicating that the construction investment in the chemical industry is still relatively high.

Industry assets: In 2021, the industry's net operating cash flow scale is 566.9 billion yuan, an increase of 34.3%; In 2021, the overall asset-liability ratio of the industry was 51.8%, an increase of 0.7% year-on-year, and the asset-liability ratio continued to rise to 52.7% in 2022Q1. Industry asset structure still needs to be optimized.