On December 8, according to Tianyan, Sinopec Xiong'an New Energy Co., Ltd. was established with a registered capital of 100 million yuan, and its business scope was hydrogen-containing new energy technology research and development; new energy technology promotion, sales service; motor vehicle charging sales; car rental; shared car service. Shareholder information shows that the company is wholly owned by China Petroleum and Chemical Corporation.
Sinopec (600028. SH) is one of the largest integrated energy and chemical companies in China. Mainly engaged in oil and gas exploration and exploitation, pipeline transportation, petroleum refining, petrochemical, coal chemical, petroleum products and other businesses.
01
The transformation crisis of traditional oil companies
As a traditional oil company, Sinopec is seeking change, in recent years, selling coffee, selling masks, selling cars and other cross-border behaviors frequently "out of the circle", now Sinopec not only has more than 30,000 gas stations in the country, but also has the largest convenience store in the country, the king of China's convenience store is not Meiyijia, not Tianfu, nor Seventy-one, but Sinopec's easy Jet convenience store. According to the "2020 China Convenience Store TOP100" released by CCFA, the top three brands in the number of convenience store stores are EasyJet, Meiyijia and Kunlun Hospitality, with the number of stores being 27,699, 20,706 and 20,000 respectively.
(Source: CCFA, Prospective Industry Research Institute)
The era of high profits in oil sales has passed, Sinopec's transformation road is accompanied by an increasingly fierce competitive environment, and the growth of the overall business is powerless, the success of easyJet convenience stores is an important step symbolizing Sinopec's non-oil business to marketization and specialization, and the successful cross-border of the new retail industry has injected new vitality into Sinopec.
However, the changes in the market have never stopped, and sinopec's development ideas have also been changing. In 2020, the state put forward the goals of "carbon peaking" and "carbon neutrality", and the development of new energy is the general trend. The transport sector is one of the main sources of carbon emissions, accounting for 15% of the country's terminal carbon emissions, and is facing considerable pressure to reduce carbon emissions. The proposal of the "double carbon" goal has stepped on the acceleration key for China's low-carbon emission reduction, and a revolution in the field of transportation is underway.
The state actively promotes the development of the new energy automobile industry, and at the same time controls the production capacity of traditional fuel vehicles. In recent years, new forces of new energy car manufacturing continue to emerge, traditional car companies are also trying to transform to new energy vehicles, and even Huawei, Baidu, Millet and other Internet formulas have participated in the new energy car manufacturing army, the participation of all walks of life and the support of policies, the development of new energy vehicles in China is very rapid.
According to the China Association of Automobile Manufacturers, in the first half of 2021, the sales volume of new energy vehicles in China has reached 1.19 million units, an increase of 224% year-on-year, and the penetration rate of new energy passenger cars has also increased significantly to 11%, a record high. The breakthrough in the penetration rate of New Energy Vehicles in China from 0 to 1% took nearly 10 years; it took more than 3 years to quickly increase from 1% to 5%, and it took more than 3 years to soar from 6% to nearly 11%. From the perspective of penetration rate, the development of New Energy Vehicles in China is in the fast lane, before the market predicted that by 2025, the penetration rate of new energy vehicles will reach 20%, if it continues to maintain a high growth trend, the 20% penetration rate target may be achieved ahead of schedule.
(Source: China Association of Automobile Manufacturers)
02
The development of new energy is the trend of the times, and there is still much time left for traditional oil companies
Under the general trend of new energy, if traditional oil companies do not seek transformation, there will be no way back. Because soon one-fifth of the market share will be occupied by new energy vehicles, which means that the refined oil retail terminal has lost part of the market opportunity, which has caused great pressure on traditional oil companies, and exploring new business is a compulsory course for all traditional energy companies.
After the penetration rate of new energy vehicles exceeds 20%, it means that the industry has entered a stage of rapid development, and it is not far from this goal, how long is left for traditional oil companies?
The trend of the development of new energy vehicles has been very stable, but the current continuous growth of penetration rate is mainly based on the low-end and high-end markets, to impress the group of people in the mid-range market, the development of new energy vehicles will usher in subversive progress. The arrival of this inflection point still has enough time to react to the market, and there is still a long buffer period for fuel vehicles to be replaced by new energy vehicles, so the industry does not have to worry about the sky.
For traditional oil companies, this change coexists with dangers and opportunities. By the end of 2019, the number of gas stations in China reached 106556, of which Sinopec had more than 30,000 gas stations, accounting for 32%. The gas stations of traditional oil companies themselves constitute a huge basic network, with stable traffic, and relying on this layout of new energy outlets has a very big advantage. In addition, traditional oil companies are still promising in business, and the non-oil business profits of domestic gas stations account for less than 10%, compared with the non-oil business profits of foreign gas station leading enterprises accounting for more than 40%, there is still great potential for development.
Sinopec is close to the direction of new energy, which is not only self-help, but also follows the trend, turning crisis into opportunity in order to survive in this change. As its management said: "Cleanliness is a profound revolution in the field of energy and chemical industry, and a strategic direction to open up a bright future for petroleum and petrochemicals."
Previously, Sinopec also announced a plan to lay out 5,000 charging and replacing power stations, 1,000 hydrogen refueling stations or oil-hydrogen joint construction stations, and 7,000 distributed photovoltaic power generation stations by 2025. That means that five years from now, China's largest oil sales company will have about one-sixth of the number of filling and replacing power stations.
As long as traditional oil companies can give full play to their own advantages, respond to "changes in the industry" with "their own changes", and actively explore new business directions within the sufficient response time of the market, they can truly turn crises into opportunities.
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