On March 20, 2023, Wanhua Chemical (SH600309) 2022 annual report was released. According to the report, the company's operating income reached 165.565 billion yuan in 2022, an increase of 13.76% over the same period last year, but its net profit was 16.234 billion yuan, down 34.14% on annual basis.
Wanhua Chemical is mainly engaged in polyurethane business, petrochemical business, fine chemicals and new materials business. In view of the fact that its income increased but profits failed to rise, Wanhua Chemical explained in its annual report that with the increase in sales of polyether polyols and the commissioning of PO/SM and several fine chemical units, the sales of the company's main products have increased, and product revenue and costs have increased accordingly. However, affected by the rise in global raw materials and energy prices, product costs rose more than revenue growth, and gross profit margin fell compared with the same period of last year.
Specifically, Wanhua Chemical's main raw materials include pure benzene, chemical coal, propane liquefied petroleum gas and butane liquefied petroleum gas, with year-on-year price changes of 13%, 26%, 15% and 19%, respectively. The main energy is electricity, and the price change rate was 16%.
Overall, the gross profit margin of Wanhua Chemical’s chemical business was 16.57%, down 9.89 percentage points year on year. Among them, the gross profit margin of polyurethane products was 24.45%, down 10.62 percentage points from the same period of last year, and that of petrochemical products was 3.74%, down 13.35 percentage points on annual basis. These two parts of the business were the main sources of revenue for Wanhua Chemical, with revenues of 62.896 billion yuan and 69.635 billion yuan respectively in 2022, accounting for 80% of Wanhua's revenue without taking into account offsets between products.
