On the 10th anniversary of the listing of Huilong shares, the thymol project was completed and put into operation

On March 12, on the occasion of the 10th anniversary of the listing of Huilong Co., Ltd. (002556), the company released the latest progress of the thymol project.

Back in 2011, huilong shares, the "first share in the circulation of agricultural materials", debuted on the capital market. In the past decade, the company's operating profit has continued to grow, the scale of assets has continued to grow, and it has been ranked among the Fortune China 500 for many consecutive years. According to the performance report released a few days ago, after preliminary accounting, the operating income of Huilong Shares in 2020 was 16.5 billion yuan, down 11.58% year-on-year; the net profit rose against the market, achieving 230 million yuan in the whole year, an increase of 21% year-on-year.

"From the numbers, we can see the quantitative change of Huilong shares, but we pay more attention to the qualitative change, and the listing itself is a qualitative change." Liu Guihua, chairman and general manager of Huilong Co., Ltd., said. According to reports, in recent years, Huilong shares have achieved a successful transformation from trade circulation to industry and trade integration, from the agricultural industry to the field of fine chemicals, from the entity enterprise single soldier combat, to the "capital + industry" two-wheel drive to move forward, has formed Huilong commerce, Huilong industry, Huilong agriculture, Huilong investment and financing and many other business sectors, and gradually developed into a modern agricultural comprehensive service provider.

In the process of transformation and upgrading of Huilong's business, the merger and acquisition of fine chemical enterprise Haihua Technology in 2019 was quite successful. The data shows that in the half year of 2020, the gross profit margin of the company's fine chemical sector reached 45%, which is much higher than that of other business sectors, and is also regarded by the outside world as the main "power point" for follow-up performance growth. In the first half of 2020, Haihua Technology achieved revenue of 472 million yuan and net profit of 128 million yuan, accounting for more than 70% of the overall net profit attributable to the listed company.

It is reported that Haihua Technology takes "toluene-toluene chloride-m-cresol-thymol-l menthol" as the core industrial chain, and extends and expands to the downstream and branches, and has formed a four-core product matrix with methyl ether series, methylphenol series, chlorotoluene series, and flavor and fragrance series as the four core products.

The thymol project released this time is a fundraising project launched at the same time when the company acquired Haihua Technology, which has been completed and put into operation a few days ago, with an annual production capacity of 4,000 tons. Huilong shares previously said in the announcement that it will take a certain amount of time for the thymol project to be put into operation to reach full production, and the release of project capacity requires a process.

According to reports, as a downstream product of m-cresol, thymol has a good bactericidal and anti-inflammatory effect, and it will be possible to be widely used in feed additives as an alternative to antibiotics in the future; and further downstream, menthol is currently one of the most widely used spices, which is widely used in the field of daily chemicals, and in recent years has also been applied to anti-AIDS drugs and other fields, and the application field is expected to be further expanded.

Before 2014, domestic m-cresol was mainly imported. Since 2019, with the growth of downstream demand for thymol and menthol, the demand for intercresol in European and American countries has increased, but there has been no new production capacity, so domestic imports have decreased significantly, exacerbating the shortage of supply and demand in the market. In particular, it is worth mentioning that the Customs Tariff Commission of the State Council has decided to impose anti-dumping duties on imports of m-cresol originating in the United States, the European Union, the United Kingdom and Japan from January 15, 2021, with an implementation period of 5 years, which is expected to accelerate the process of import substitution of m-cresol.

The company said that at present, there is no domestic synthetic menthol enterprise with large output and advanced technology, and Haihua Technology has a first-mover advantage in both industrial chain layout and process technology.

Based on the above, Huilong shares accelerated the launch of related projects. It is reported that the company's 3000t/a synthetic l-menthol project is accelerating; the follow-up will also organize the implementation of the project with an annual output of 10,000 tons of m-cresol through self-financing to provide raw material guarantee for downstream products.

Speaking of future development, Liu Guihua proposed that he will continue to maintain the leading level of the industry in the main business operation, and fully implement the "integration of industry and trade" strategy, and at the same time will make new articles and new breakthroughs in serving agriculture, and create an international and domestic double-first-class enterprise group with distinctive characteristics and core competitiveness.