Rong Sheng Petrochemical Industry Chain Integration &Nbsp; Win The Opportunity To Win.

Rongsheng Petrochemical Company, the leading enterprise of polyester production, will welcome online purchase today.

With "heaven, earth, and people", the development of the company will benefit from the upward trend of PTA, the scale economic effects of industrial clusters and the advantages of integrated production of industrial chains.

The sixth largest polyester in China

Rongsheng Petrochemical is the sixth largest polyester manufacturer in China, mainly engaged in the production and sale of PTA and polyester fiber (Dacron) related products.

The main products are PTA and polyester drafting yarn (FDY), polyester preoriented yarn (POY), polyester filament and elastic yarn (DTY), three series of polyester filament and PET chips.

By the end of 2009, the company had formed the annual design and production capacity of 600 thousand tons polyester, polyester spinning (FDY, POY) 570 thousand tons, polyester terylene filament (DTY) 250 thousand tons. The company's Yisheng Hua and Zhejiang Yisheng share holding company had the annual design and production capacity of 1 million 200 thousand tons and 1 million 60 thousand tons PTA respectively.

As of June 30, 2010, the company

The production scale of Rongsheng Petrochemical's main products is in the leading position in the same industry. The expansion of production scale is conducive to improving the operation of the production plant and the stability of the product quality, improving the production efficiency, reducing the unit investment cost and unit energy consumption of the product, so as to make the products of the company more competitive.

Rongsheng Petrochemical Company is a joint stock company established by Rongsheng Chemical Fiber Group Co., Ltd.

The controlling shareholder of the company is Rongsheng holding, holding 85% of the company's shares before the issue. Rongsheng holdings was founded in September 2006, with a registered capital of 200 million yuan, ranking 303rd in the top five hundred of Chinese enterprises in 2010, and forty-ninth in five hundred Chinese private enterprises, and 2008-2009 in the competitive edge of China's chemical fiber industry in 2008-2009.

Weather:

Since 2006, the supply and demand of PTA in the world, especially in China, has increased rapidly. Overall, the growth of PTA supply is faster than that of demand growth.

The rapid growth of PTA industry is mainly due to the development of polyester polyester industry in China.

In recent years, China's polyester production capacity has increased rapidly, from 5 million 845 thousand tons per year in 2000 to 26 million 800 thousand tons / year in 2009, with an average annual growth rate of 18.44%.

In the next few years, domestic demand for chemical fiber will continue to grow, and domestic PTA capacity can not fully meet the domestic market demand.

The fundamental factor determining the future market supply and demand is the development of the downstream textile industry.

The state has issued various policies to speed up the revitalization of the textile industry, promote structural adjustment and industrial upgrading, and promote the pformation of China's textile industry from big to strong.

With the accelerated upgrading of the consumption structure of the residents, the consumption of clothing, home textiles and industrial textiles will increase continuously. The consumption demand of per capita clothing will continue to grow, and the consumption demand of household textiles will also expand with the improvement of residents' housing conditions and the growth of leisure tourism.

Therefore, the textile industry will still have better development potential in the next few years.

With the growth of downstream textile and garment industry, a new round of demand growth will be generated for differentiated and functional polyester fibers. This will help to improve the structural readjustment and variety of polyester polyester products, and will drive the polyester polyester market into a sustainable development stage.

In addition, as China's polyester products are rich in variety, the level of technology and quality is at the leading international level, the cost and price advantages are obvious, and the products have strong international competitiveness. The growth of the quantity of direct exports of polyester polyester products will also be one of the driving forces for the development of polyester polyester industry in China in the coming years.

{page_break}

Location: located in industrial clusters.

From the perspective of PTA capacity layout, it is mainly concentrated in the eastern coastal areas, and gradually formed the polyester zone in the Yangtze River Delta region of Jiangsu, Zhejiang and Shanghai. By the end of 2009, the polyester production capacity in the Yangtze River Delta accounted for 77.6% of the total polyester production capacity in the whole country.

From an incremental perspective, in 2009, about 20 million 470 thousand tons / year of polyester production increased in 2000, 90% appeared in the Yangtze River Delta region.

Located in Xiaoshan District of Hangzhou, Rongsheng Petrochemical is one of the important textile industrial bases in China. It is also a key industrial cluster area for chemical fiber raw materials, fabrics and clothing production in China. Market demand and product pactions are very active.

Rongsheng Petrochemical is closely related to China's famous chemical fiber Town, yayqian Town, Xiaoshan District, Hangzhou. It also owns China's textile purchasing Expo City and the largest chemical fiber trading market in the country, Qian Qing market.

Location advantage brings great convenience to Rongsheng Petrochemical polyester product sales and production. It can enable Rongsheng Petrochemical to get market demand information timely, produce marketable products and arrange stock rationally.

Rongsheng Petrochemical has strong influence in the industry as a superior enterprise of Shaw chemical fiber industrial cluster.

In the long term production and operation process, Rongsheng Petrochemical has always adhered to the business philosophy of "honesty and striving for excellence". It has been open, fair and pparent in the pricing of products. It has put an end to the improper actions in the sales process. It has persisted in safeguarding the interests of customers and the quality of Rongsheng petrochemical. Therefore, even if the price of Rongsheng petrochemical products is slightly higher than that of its competitors, customers are still willing to choose Rongsheng petrochemical products.

Rongsheng petrochemical products pricing is consistent with the market trend. Other enterprises in the industry often refer to the quotation of Rongsheng Petrochemical when pricing.

The company is located in the most prosperous area of industry development, has the advantage of natural cluster, benefits from the development of scale effect, and is also conducive to positioning market segments, developing new products and establishing competitive advantages according to its own characteristics.

The production scale of the main products of Rongsheng Petrochemical is in the leading position in the same industry. The expansion of production scale will help to improve the stability of production equipment and product quality, improve production efficiency, reduce the unit investment cost and unit energy consumption of the products, thus make the products of the flourishing stone more competitive in the market.

People and: a perfect industrial chain

PTA, the main raw material of polyester polyester, has developed rapidly in recent years. In 1996, the PTA capacity of our country was only 1 million 578 thousand tons / year. After 2002, the PTA industry entered a fast growing period.

In 2009, China's PTA output exceeded 10 million tons, making it the world's largest PTA producer.

In 2005, China's PTA production capacity surpassed Korea, Taiwan and the United States, becoming the world's first PTA producer.

The world's PTA production capacity is still growing. In 2009, the global PTA capacity was about 44 million tons / year, and the world's new PTA production capacity was almost in Asia, and most of the new capacity in Asia was concentrated in China.

At present, China is the largest producer, consumer and importer of PTA in the world.

In 2006, China's imports of PTA gradually decreased, and in 2009, the dependence on imports dropped from 64% to 34.27%.

Since 2003, with the opening of PTA industry to private enterprises, with the support and help of China Chemical Fiber Industry Association, the company began to extend to the upstream of the industrial chain. The Yisheng PTA project in Zhejiang was put into operation in 2005, with a design capacity of 1 million 60 thousand tons / year.

In 2006, the company invested in the construction of Yanda PTA project, and put it into operation in April 2009, with a design capacity of 1 million 200 thousand tons / year.

It not only guaranteed the stable supply of raw materials, but also reduced the production cost.

On the basis of the industrial chain consisting of three processes of polyester, spinning and firing, the company has expanded its upstream PTA industry to the polyester industry through outward investment, and has 1 million 200 thousand tons and 1 million 60 thousand tons of PTA design capacity respectively through holding subsidiaries and Yisheng share holding company, Zhejiang.

The extension of the industrial chain will provide a stable source of PTA raw materials for the company's polyester filament production line. On the other hand, the high degree of vitality of the PTA industry will significantly enhance the company's profitability. At the same time, the company is committed to the independent innovation of equipment technology, which can further reduce production costs and enhance the competitiveness of the company.

In the future, the company plans to invest in the upstream PX project, and will integrate the industrial chain to the end.

Raise investment projects to enhance the industrial chain and reduce costs

The project is to build a PTA project with an annual output of 1 million 200 thousand tons, and an annual output of 100 thousand tons of Shengyuan chemical fiber and environmental health multifunctional fiber pformation project, of which PTA project has been completed and put into operation in April 2009. When it comes into operation, the domestic PTA industry is booming.

The 100 thousand ton environmental protection multi-functional health project is expected to be completed by the end of 11, and the differential rate of products will be further improved after completion.

It is worth mentioning that the Yanda PTA device is a project with independent intellectual property rights. It is the project with the leading domestic production capacity, the lowest energy consumption and the lowest unit investment cost, so it has a large cost advantage.

At present, domestic PTA demand continues to rise, while the cost of producing PTA projects is larger, and the investment construction cycle is longer. Therefore, there will not be a large number of new capacity commissioning in the industry boom period, and the profitability of PTA industry will continue to improve.

After the implementation of the project, the company will further improve the product mix and further develop differentiated fiber (environmental health and multifunctional fiber) varieties on the basis of consolidating the integration advantages of the existing products, and extend the industrial chain to the upstream raw material industry (PTA), thus enhancing the overall competitive advantage of the industrial chain integration.

According to the company's development plan and the use of investment funds, the main development of the company comes from the PTA project of the company's continuous construction and the benefits brought about by the environmental protection and health multifunctional fiber project. Due to the gap between the supply and demand of domestic PTA at present, the probability of unsalable production is less. The about 1000000 tons of PTA capacity released by the company's investment project and the environmental protection fiber project are put into operation one after another, which will ensure the sustained and rapid growth of the company's business income.

Guotai Junan expects the net profit attributable to the parent company in 2010, 2011 and 2012 will reach 1 billion 160 million, 1 billion 530 million and 1 billion 800 million yuan, earnings per share 2.09 yuan, 2.75 yuan and 3.24 yuan.