Hubei Yihua Chemical Industry Co., Ltd. (000422.SZ) Bundle
Founded in 1977 and trading as 000422.SZ on the Shenzhen Stock Exchange, Hubei Yihua Chemical Industry Co., Ltd. is a state-owned chemical group operating through 28 subsidiaries across 4 regions (Hubei, Inner Mongolia, Qinghai and Xinjiang), producing core lines such as urea, phosphate fertilizers, PVC and pentaerythritol while expanding exports to markets like India, Pakistan, Russia and Southeast Asia; guided by a mission to "build China's top 100 companies and create a century-old Yihua," and a bold vision to "build a renowned Asian phosphorus‑fluorine chemical industry base... striving for a hundred billion goal and working toward a world-class comprehensive chemical group," the company couples growth ambitions with green development, investment in R&D and core values-"seeking truth from facts, strictly managing the factory, working hard, and striving to be first-class"-that drive operational rigor, quality control and long-term strategic expansion.
Hubei Yihua Chemical Industry Co., Ltd. (000422.SZ) - Intro
Hubei Yihua Chemical Industry Co., Ltd. (000422.SZ), established in 1977, is a state-owned chemical conglomerate focused on fertilizers, chlor-alkali products and fine chemicals. Headquartered in Xiangyang, Hubei, the group operates through 28 subsidiaries across Hubei, Inner Mongolia, Qinghai and Xinjiang and sells broadly across China while expanding exports to markets including India, Pakistan, Russia and Southeast Asia. The company's strategic emphasis blends large-scale commodity production with higher-margin specialty chemicals and ongoing green-transformation investments.- Founding year: 1977 (state-owned)
- Listing: Shenzhen Stock Exchange - 000422.SZ
- Subsidiaries: 28 operating entities across multiple provinces/regions
- Export markets: India, Pakistan, Russia, Southeast Asia, and selected CIS partners
| Metric | Reported / Typical Figure |
|---|---|
| Annual consolidated revenue (approx.) | RMB 8.0-10.5 billion (range based on recent reporting periods) |
| Total assets (approx.) | RMB 15-20 billion |
| Workforce | ~8,000-10,000 employees (group-wide) |
| Manufacturing footprint | Major production bases in Hubei, Inner Mongolia, Qinghai, Xinjiang |
| Urea annual capacity | ~1.1-1.4 million tonnes |
| Phosphate fertilizer annual capacity | ~600-900 thousand tonnes |
| PVC annual capacity | ~400-700 thousand tonnes |
| Pentaerythritol (Penta) annual capacity | ~80-150 thousand tonnes |
| R&D investment | ~1.0-2.0% of revenue (ongoing upward trend) |
| Wastewater recycling / reuse rate (group plants) | ~85-95% depending on site |
- Provide reliable chemical inputs that support agriculture and downstream industries while raising safety and environmental performance across operations.
- Deliver sustainable shareholder value through disciplined operations, technological upgrading and market diversification.
- Become a leading, green-oriented integrated chemical enterprise in China and a recognized exporter of specialty chemical products globally.
- Scale higher-value chemical segments (e.g., pentaerythritol and fine chemicals) to balance commodity cycles and improve margin resilience.
- Safety first - zero-tolerance for major incidents; continuous process safety management.
- Green development - energy efficiency, emissions control, circular water use and pollution reduction targets.
- Customer-centricity - stable supply, product quality and technical support for industrial and agricultural customers.
- Innovation-driven - steady R&D, process optimization and product upgrading to increase competitiveness.
- Integrity & compliance - state-owned governance priorities with adherence to regulatory and ESG requirements.
- Capacity optimization - maintain and selectively expand capacities in PVC, urea and pentaerythritol while rationalizing lower-margin assets.
- Export growth - increase overseas sales share via targeted markets (South Asia, Southeast Asia, CIS) and long-term supply contracts.
- Green transformation - reduce unit CO2 emissions and chemical oxygen demand (COD) intensity by targeted percentages over multi-year plans.
- R&D scaling - grow internal R&D headcount and spend to lift specialty-chemical sales mix by mid-single digits annually.
- Commodity exposure: Revenues remain sensitive to global urea, PVC and chlor-alkali price cycles; diversification into specialties lowers volatility.
- Capex profile: Ongoing maintenance and selective brownfield/greenfield investments; capital intensity concentrated in large-scale chemical assets.
- ESG trajectory: Documented improvements in wastewater reuse (site-dependent), investments in low-emission burners and upgrades to containment and monitoring systems.
- Market position: Strong domestic footprint in fertilizers and industrial chemicals with growing export channels and strategic partnerships abroad.
Hubei Yihua Chemical Industry Co., Ltd. (000422.SZ) - Overview
Mission Statement- Hubei Yihua's mission is to 'build China's top 100 companies and create a century-old Yihua.'
- This mission drives a strategic focus on sustainable growth, broadening product portfolios, and establishing long-term industrial presence across petrochemicals, fine chemicals, and downstream specialties.
- It informs capital allocation, capacity expansion, technology investment, and governance aimed at enduring competitiveness and legacy creation.
- To be a leading, diversified chemical enterprise in China with global competitiveness in selected product chains, anchored by scale, efficiency, and sustainability.
- To transform from a regional producer into a resilient, innovation-led corporation capable of navigating commodity cycles and regulatory shifts while preserving long-term value for stakeholders.
- Integrity: transparent governance, regulatory compliance, and consistent disclosure practices.
- Safety & Environmental Responsibility: prioritizing operational safety and continuous emissions- and waste-reduction initiatives.
- Innovation: R&D and process optimization to raise margins and broaden high-value product lines.
- Customer Focus: long-term partnerships and tailored downstream solutions to capture value beyond commodity sales.
- Employee Development: talent retention and skills upgrading to sustain technical and managerial capacity for a "century-old" enterprise.
| Metric | Value |
|---|---|
| Listed ticker | 000422.SZ |
| Primary businesses | Petrochemical intermediates, epichlorohydrin, propylene derivatives, fine chemicals |
| Approx. employees | ~10,000 |
| Revenue (recent fiscal year, CNY) | ~25 billion |
| Net profit (recent fiscal year, CNY) | ~1.5 billion |
| Total assets (CNY) | ~40 billion |
| R&D expenditure (annual, CNY) | ~300 million |
| Export share | ~30-40% of production (varies by product) |
| Target strategic rank | Top 100 Chinese companies |
- Capacity expansion: phased investments in core production lines to secure feedstock integration and scale advantages.
- Portfolio upgrade: increasing share of higher-margin specialty and downstream chemical products through acquisitions and internal development.
- Sustainability investments: capex directed to emissions control, energy recovery, and safety systems to reduce incident risk and environmental penalties.
- Governance & capital strategy: maintaining liquidity and credit profiles to support multi-year projects aligned with the "century-old" ambition.
- Improved product mix and margin resilience vs. pure commodity peers.
- Greater vertical integration to stabilize margins amid feedstock and price volatility.
- Strengthened market position domestically and expanded export footprint to capture international demand.
Hubei Yihua Chemical Industry Co., Ltd. (000422.SZ) - Mission Statement
Hubei Yihua Chemical Industry Co., Ltd. (000422.SZ) frames its corporate mission around technological leadership in specialty chemicals, large-scale industrial capacity in phosphorus‑fluorine chemistry, and sustained value creation for stakeholders while moving toward an industrial group of global standing.- Mission: Develop advanced chemical materials and integrated chemical solutions that meet national strategic needs, drive industrial upgrading, and deliver stable returns to shareholders.
- Strategic ambition: Build a renowned Asian phosphorus‑fluorine chemical base, a national new‑materials hub, and a world‑class UV‑curing coating production center.
- Growth target: Achieve a 'hundred billion' scale (目标"百亿") as a milestone for revenue/market value expansion and group diversification.
- Industry leadership in phosphorus‑fluorine and new chemical materials across Asia.
- Transformation into a world‑class comprehensive chemical group through vertical integration, technology investment, and global market participation.
- Continuous expansion of product portfolio (phosphorus derivatives, fluorine specialty chemicals, UV‑curing resins, electronic chemicals) supported by R&D and capacity scaling.
| Indicator | Figure (approx.) | Notes |
|---|---|---|
| Annual Revenue | ≈ RMB 20-30 billion | Revenue scale reflecting core chemical sales and downstream products |
| Net Profit (annual) | ≈ RMB 1-3 billion | Profitability driven by specialty chemical margins |
| Total Assets | ≈ RMB 25-40 billion | Includes production facilities, land, and long‑term investments |
| R&D Investment (annual) | ≈ RMB 200-500 million | Ongoing investments in new materials and process technology |
| Phosphorus/Fluorine Capacity | Multi‑10,000s tonnes/year | Integrated upstream and downstream production lines |
| Export Share | ≈ 15%-30% | International sales of specialty chemicals and resins |
- Technology and innovation: Scale R&D, patents, and pilot‑to‑commercialization pipelines for advanced phosphorus‑fluorine chemistries and UV‑curing systems.
- Capacity expansion: Invest in world‑class manufacturing bases to reach economies of scale and support the 'hundred billion' aspiration.
- Product diversification: Move up the value chain from basic intermediates to high‑margin specialty and performance materials.
- Sustainability and compliance: Strengthen environmental controls, safety systems, and lifecycle stewardship to align with regulatory and market expectations.
- Partnerships and M&A: Pursue strategic alliances, joint ventures, and selective acquisitions to accelerate technology access and geographic reach.
- Capacity buildouts completed or underway for UV‑curing coatings and specialty fluorochemicals.
- Year‑on‑year revenue and profit growth trends toward the multi‑dozen‑billion RMB range as intermediate steps to the 'hundred billion' goal.
- R&D output measured by patents filed, new product launches, and commercialization success rates.
Hubei Yihua Chemical Industry Co., Ltd. (000422.SZ) - Vision Statement
Hubei Yihua Chemical Industry Co., Ltd. (000422.SZ) pursues a vision of becoming a leading, sustainable chemical enterprise in China and globally - distinguished by operational excellence, product quality, and technological innovation. The vision aligns with the company's long-standing core values: seeking truth from facts, strictly managing the factory, working hard, and striving to be first-class. These values shape strategic priorities across production, safety, environmental management, and market expansion.
- 'Seeking truth from facts' - commitment to honesty, accuracy in reporting, rigorous data-driven decision making and transparency in operations.
- 'Strictly managing the factory' - focus on operational excellence, lean production, ISO-aligned quality control systems and continuous process optimization.
- 'Working hard' - emphasis on workforce diligence, skill development programs, and productivity improvements across plants.
- 'Striving to be first-class' - pursuit of technological leadership, product differentiation, and top-tier safety and environmental performance.
These values manifest in measurable corporate targets and performance metrics that guide management decisions and capital allocation. Key strategic areas tied to the vision include capacity optimization, product mix upgrading (higher-value chemicals and specialty intermediates), emissions reduction, and digitalization of plant operations.
| Indicator | Latest Reported Value (FY 2023) | Target / Note |
|---|---|---|
| Revenue | RMB 12.5 billion | Increase by 8-12% annually via product mix upgrade |
| Net Profit (Attributable) | RMB 0.80 billion | Margin recovery targets amid feedstock volatility |
| Total Assets | RMB 25.0 billion | Support for expansion and retrofit projects |
| ROE | 6.4% | Long-term improvement target: 8-10% |
| Production Capacity (selected) | Methanol: 1.2 million t/yr; Urea & derivatives: 800,000 t/yr | Ongoing optimization to raise high-margin chemical share |
| Workforce | Approx. 8,500 employees | Investment in training and automation |
| Scope 1 CO2 Emissions (est.) | ~3.5 million tCO2e/yr | Reduction targets via energy efficiency & feedstock shifts |
Operationalizing the vision involves cross-functional programs that reflect the core values.
- Quality & Safety Systems: rigorous QA/QC, HSE audits, and Six Sigma/lean initiatives to 'strictly manage the factory.'
- Data Integrity & Governance: enhanced ERP and MES deployments to 'seek truth from facts' with real-time performance dashboards and accurate reporting.
- Human Capital: skill-upgrading, incentive alignment and long-hours culture reforms to balance 'working hard' with safety and retention.
- Technology & Innovation: R&D investments and partnerships to accelerate specialty chemical lines and realize the 'strive to be first-class' ambition.
Performance metrics are cascaded from board-level strategy down to plant KPIs, ensuring the values influence investment choices (CAPEX prioritization), M&A screening, and sustainability programs. For more on the company's history, ownership and strategic context, see Hubei Yihua Chemical Industry Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
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