China Petrochemical Development Corporation · TWSE:1314
China Petrochemical Development — H1 2024 Earnings Presentation
28 slides from China Petrochemical Development's earnings presentation, Sep 13, 2024
Slide 1: Investor Conference
Investor Conference Respect．Innovation．Care．Excellence．Green Business 2024/9/13
Slide 2: Disclaimer
Disclaimer • This presentation is for informational purposes only, contains preliminary financial and other information about China Petrochemical Development Corporation and is subject to updating, revision, amendment and completion This presentation does not and is not intended to constitute or con
Slide 3: Agenda
I. Industry and Market Overview II. Operational Performance III. Major Projects and Progress IV. Transformation Strategy and ESG Action
Slide 4: Industry and Market Overview
Industry and Market Overview Respect．Innovation．Care．Excellence．Green Business Transform the Petrochemical Industry Expand new business in Land Development
Slide 5: Main Products CPL & PA6
Main Products CPL & PA6 China new production capacity leads to 【2024 YTD】 USD/MT an increasing supply 3000 CPL Asia PA6 Asia Mild Q3 Textile and nylon downstream demand, closely monitoring Q4 recovery. 2500 2000 1500 Adopt optimal production operations responding to the 1000 【2022】 【2023】 highly
Slide 6: Main Products AN
【2024 YTD】 Main Products AN 1H2024 price supported by tight supply and recovered demand. USD/MT AN_Asia 3000 2H 2024 lower ASP outlook due to new capacity and weak end-market demand by slow economy. 2500 2000 Downstream demand is yet to recover; maintaining efficient 1500 production for stable s
Slide 7: Trends on Major Feedstock
【2024YTD】 • Propylene: Supply increases by new PDH capacity while demand Trends on Major Feedstock remains to support steady and choppy prices. • NH3: Asian supply tightens with loose supply in other regions. Expected choppy but steady prices USD/MT • Benzene: 2H 2024 prices expected to be comparabl
Slide 8: 2024H1 Operational Performance
2024H1 Operational Performance Respect．Innovation．Care．Excellence．Green Business Transform the Petrochemical Industry Expand new business in Land Development Note: The expression of financial information is mainly based on the consolidated financial statement
Slide 9: 2024H1 Production & Sales
2024H1 • CPL and PA6 sales volume increases resulting from favorable Production & Sales demand support lower feedstock cost. (2022 ~ 2024H1) • AN production and sales slowly picked up due to falling costs. AN CPL 20 19 Nylon6 18 16 17 17 30 16 14 24 12 11 20 10 10 17 8 15 14 6 10 4 15 2 8 0 0 2022 2
Slide 10: Scheduled maintenance plan & capacity utilization
Scheduled maintenance plan & capacity utilization CPDC 大社廠(AN) 產能利用率 Headquarter Toufen (OPP) Utilization Rate 95% s 100% 88% 84% 83% Toufen (OPP) 77% 80% 73% April (about 17 days) 64% 60% 40% Douliu(PA6) Jun-Jul 20% (A:about 42 days 0% B:about 17 days) 23Q1 23Q2 23Q3 23Q4 2023全年 24Q1 24Q2 23Q1 23Q2
Slide 11: Revenue Mix
Revenue Mix 2024H1 Recovery in demand for key products (CPL, PA6,AN) led to higher operating rate and revenue growth. 【2024H1 Revenue Mix】 【Change in Revenues from past 2 years】 Units: Subsidiary & 2023H1 2024H1 % Chg NTD100million Others, CPL, CPL 19 31 63% 9% 19% PA6 19 20 5% Weiming, PA6, AN 41 4
Slide 12: Quarterly Financials
2023 profits affected by mainland China’s production capacity expansion, interest rate hikes, and inflation. Quarterly Financials 1H 2024 profits improved by lower feedstock costs, higher operating rate and CPL profits 單位：億元 15.00 84.9 90.0 81.9 73.7 80.0 10.00 69.6 69.3 70.0 5.00 60.0 51.5 50.0
Slide 13: Condensed P&L
The 2023 unfavorable industry market condition results operating loss, and the impairment loss from transformation actions caused net loss Condensed P&L 1H 2024 operating and net profits improved from lower cost and increased sales volume. Units: NT$ 100 millions 2021 2022 2023 2024H1 2023H1 YOY
Slide 14: Net Profits 2023 H1 vs. 2024H1 Difference analysis
Net Profits(loss) 2023 H1 vs. 2024H1 Difference analysis 16 2023 H1 2024 H1 5 4 1 0 Lower cost, Gain from Profits increase from other higher operating rate land disposal equity method investments -18 14
Slide 15: Balance Sheet
2024H1 Balance Sheet Current assets increase by inventory of construction projects fromf land business. Current liabilities decrease due to decrease in long-term liabilities within 1-year. Units: NT$100millions 2021(註) 2022 2023 2024H1 Total Assets 1,352 1,411 1,457 1,458 Current Assets 573 646
Slide 16: Selected Ratios
Selected Ratios 2024H1 2021 2022 2023 2023H1 2024H1 Explanation Debt Ratio 41% 44% 46% 45% 46% Current Ratio 277% 255% 220% 237% 234% Operating losses slow down. Net Profit Margin 10% 1% -4% -15% 2.79% Non-operating incomes increase. ROA (%) (Note 1) 5% 0.58% 0.36% -1.53% 0.40% Profits improved ROE
Slide 17: Major Projects and Progress
Major Projects and Progress Respect．Innovation．Care．Excellence．Green Business Transform the Petrochemical Industry Expand new business in Land Development
Slide 18: Project Progress_Kaohsiung Intercontinental Terminal
Project Progress_Kaohsiung Intercontinental Terminal • NT$3.2 billion total investment in 3 phases. Storage tank items: liquid ammonia (30,000 tons), AN, phenol • The progress of both the 1st and 2nd phases are completed and in operation for own-use. The ammonia export initiated in Feb 2024 and to l
Slide 19: Other Projects Progress
Other Projects Progress • It was carried out in two phases. Due to the impact of market conditions and construction costs, 2024/06/25 The board of directors reviewed and approved to cease the Phase 2 construction. • All projects in Phase 1 have been tested and accepted, and water operation has been
Slide 20: Land Development_CPDC's Land Distribution
中石化自有投資性不動產 Land 地價稅漲幅 Development_CPDC’s Land Distribution CPDC Land Distribution in Unit: ping 111 ping Nanzi Kaohsiung City Huimin Section 114 ping New Taipei Taipei 1,888 ping Miaoli Chiayi 3,561 ping Tainan 788,199 ping Qian Feng zhen shan Kaohsiung* XinJia Section 47,740 ping Trade Zone Busine
Slide 21: Lands auction in 2024
Land Development_ Kaohsiung city _ Riding the high-tech investments wave to revitalize land assets Lands auction in 2024 Estimated gains Disposed Land Lot from disposal Land No. 1-1, Section 5, Economic and Trade Section, 113/3/26 Qianzhen District, Kaohsiung City About 2.73 Land No. 16 and 17, Huim
Slide 22: Lands auction in 2024
Land Development_ Kaohsiung city _ Riding the high-tech investments wave to revitalize land assets Lands auction in 2024 Land No. 3, Sub-sec 2, Xiande Sec. 454.93 ping (with construction license, NT820 million) Land No. 1-1, Sub-sec. 5, Jingmao Sec. 2,362.51 ping Huayaulian (NT2.008 billion) Land No
Slide 23: Land Development_Kaohsiung Qianzhen District Special Trade 5A
Land Development_Kaohsiung Qianzhen District Special Trade 5A Short-to-medium-term investment promotion has achieved results • Cooperate with the government to promote the development of "Asia Decathlon New Bay Area" and the relocation of 205 Ordnance Factory, and promote Car development plans. Unit
Slide 24: Land Development_Core Pacific Plaza
Land Development_Core Pacific Plaza Project progress: The basement engineering reinforcement work is in progress, and the construction work on the first floor is currently underway. The construction work is in progress as planned, and the lifting operations of the beam and curtain work are expected
Slide 25: Transformation Strategy and ESG Performance
Transformation Strategy and ESG Performance Respect．Innovation．Care．Excellence．Green Business Transform the Petrochemical Industry Expand new business in Land Development
Slide 26: Sustainability key actions
Sustainability key actions • Continue to build solar renewable energy, adopt energy-saving and water-saving processes, and reduce the use of packaging materials. Environ mental • All plants have obtained ISO 9001、ISO 14001、ISO46001 certification; Main production plants additionally certified by ISO
Slide 27: Transformation Development Strategy
Transformation Development Strategy Fine /Specialty Chemicals Energy 2050 Net Zero Carbon Climate Action: 1. OPP (o-phenylphenol): Continue to optimize the manufacturing process to improve competitiveness, 1. Natural gas as supply energy (Dashe, Xiaogang, Toufen, Douliu Factory) develop downstream d
Slide 28: Thank You
Thank You Website: https://www.cpdc.com.tw CPDC Spokesperson: Direct Line: 02-8787-8187 x8370 investors@cpdc.com.tw Respect．Innovation．Care．Excellence．Green Business 28
China Petrochemical Development — H1 2024 Earnings Presentation on 6ix