Junzheng Group: The construction progress of the first phase of the green degradable plastic recycling industry project and supporting projects is progressing as planned
Latest News: On September 13, Junzheng Group stated at the performance briefing that the source of funds for the company’s investment and construction of degradable plastic projects includes but is not limited to the company’s own funds, loans from financial institutions, etc. The project construction funds will be gradually invested along with the project construction cycle. In addition, the company invested and constructed the BDO plant with an annual output of 2 × 600,000 tons and the first-phase project and supporting projects of the green environmental protection recycling industry with an annual output of 2 × 1 million tons of PBAT/PBS/PBT/PTMEG. The current infrastructure construction is progressing as planned. The production capacity integration, production factor preparation, personnel recruitment and other work related to this project are progressing in an orderly manner. The bidding work for the main equipment related to the design has been basically completed, the design institute has entered the comprehensive design stage, and the main technical personnel have been recruited in place. .
According to the 2022 Interim Report of Junzheng Group, the company achieved a total operating income of 10.463 billion yuan in the first half of 2022, a year-on-year increase of 20.6%; a net profit attributable to the parent of 2.032 billion yuan, a year-on-year decrease of 9.1%; earnings per share was 0.24 yuan. At the performance meeting, according to the company’s introduction, in the first half of 2022, the company’s chemical logistics sector has further improved its global operation capability, and the scale of operating assets has steadily increased. In the first half of the year, Junzheng Logistics achieved main business income of 3.898 billion yuan. The gross profit of the business was 770 million yuan, the net profit was 340 million yuan, and the operating results reached a record high.
Regarding the current sales model, the company pointed out that the sales model of the main products in the energy and chemical sector adopts a combination of self-selling and distribution. The company’s main products, such as polyvinyl chloride resin, caustic soda, calcium carbide, ferrosilicon, cement clinker, etc., have reached long-term and stable cooperation with high-quality customers in various industries. Each product is based on the pricing principle of “accompanying the market”, and the sales cycle is weekly to achieve a balance between production and sales.
In terms of the progress of the first phase of the green degradable plastic recycling industry, it is reported that the company invested and constructed a BDO plant with an annual output of 2 × 600,000 tons and an annual output of 2 × 1 million tons of PBAT/PBS/PBT/PTMEG. The project and supporting projects were officially launched on April 8, 2022. The project has reached a high level in the industry in terms of energy saving, safety, environmental protection, quality and automation. The main production process and technical equipment have achieved industry-leading performance. The current infrastructure construction progress do it according to plan. The production capacity integration, production factor preparation, personnel recruitment and other work related to this project are progressing in an orderly manner. The bidding work for the main equipment related to the design has been basically completed, the design institute has entered the comprehensive design stage, and the main technical personnel have been recruited in place. .
On the issue of new energy development, according to the company’s introduction, on April 29 this year, the board of directors reviewed and approved the “Proposal on the Company’s Wholly-owned Subsidiary to Invest in the Construction of a Raw Material Calcium Carbide Project with an Annual Output of 720,000 tons”. The company Junzheng Chemical is the main body of investment. The Wuda Industrial Park, Wuhai City, Inner Mongolia, is a calcium carbide project with an annual output of 1 million tons of degradable plastic green environmental protection recycling industry chain supporting raw materials. The project is estimated to have a total investment of 2.38 billion yuan. The project involves relevant administrative The approval of the competent authority is in progress. In the first half of this year, Junzheng Chemical, a wholly-owned subsidiary of the company, acquired 100% equity of Inner Mongolia Zhensheng Energy Saving Technology Co., Ltd., which is located in Ordos (18.460,
-2.38%) Mengxi Industrial Park, Etuoke Banner, with a 525,000-ton/year calcium carbide production facility. The company’s current generating units are all thermal power generation, and are currently doing some preliminary research work on the development of new energy.