Analysis of the Economic Operation of Polyester Raw Materials in the First Half of 2008

Core Tips: PTA's new resources are very impressive, EG resources are growing strongly, the production and operation of the polyester raw materials industry are comparative, the production and sales of the polyester raw materials industry are linked to the operation of the assets, the ability to realise assets of the polyester raw materials industry is changed, and the polyester raw materials are changed. The change in the economic scale of the industrial unit's product, and the change in the unit cost of the polyester raw material industry.

1 New PTA resources are very impressive

    According to industry estimates, China's PTA production in January-June 2008 was 5,357,700 tons; according to customs statistics, from January to June, imports of PTA were 3.0873 million tons, exports 0.2 million tons, and new resources (production + imports) 8,441,300,000 Ton, net increase of resources (new resources - exports, that is, apparent demand) of 8.439 million tons, indicating that the market demand for China's PTA industry is relatively strong.

    Compared with the previous month, the production and import and export of the PTA industry in June 2008 fluctuate, resulting in changes in both new and net increase resources for the month.

    From the perspective of PTA's import and export unit prices, the unit price for imports in June 2008 was US$1,046.10 per ton, and the unit price for exports was US$947.78 per ton.

    Table 1 Production and Import and Export of PTA in China

2 EG resources increase quite strong

   According to industry estimates, China's MEG production in the first six months of 2008 was 926,500 tons; according to customs statistics, from January to June, MEG 2,719,900 tons were imported, exports were 90,650 tons, and new resources (production + imports) were 3.646 million. Ton, a net increase of resources (new resources - exports, that is, apparent demand) of 3.6368 million tons, showing that the market demand for China's MEG industry is relatively strong.

    Compared with the previous month, the production and import and export of the MEG industry in June 2008 fluctuate, resulting in a change in both new resources and net increase in the month.

    From the perspective of the MEG's import and export unit prices, the unit price for import in June 2008 was US$1091.83 per ton, and the unit price for exports was US$3,260.22 per ton.

    Table 2 Import and Export of MEG Production in China

Note: MEG production is estimated by industry insiders

3 Comparison of production and operation status of polyester raw material industry

   From the perspective of business production and profitability, the gross profit margin of the polyester raw materials industry was 9.17% in the first six months of 2008, and the three-time ratio (sum of operating, management, and financial expenses) was 6.54%, and the profit rate was 3.99%. Excluding the impact of non-recurring gains and losses, the nominal pre-tax profit margin was 2.63%; the industry's inventory ratio was 14.56%, and the sales-to-sales ratio was 90.34%, indicating that the product sales were normal; the loss of the industry was 21.22%. From this we can see that in the polyester raw material industry, the production and operation status has worked well.    

Table 3 Changes in production and operation status of polyester raw material industry

4 Production and Sales Connection and Asset Operation of Polyester Raw Material Industry

From the connection of production and sales, the production and sales ratio of the polyester raw material industry in January-June 2008 was 90.34%, indicating that the industry’s product sales were in good condition; the accounts receivable turnover rate was 11.07 times; the accounts receivable operating cycle (180 days/ The turnover rate of accounts receivable is 16.26 days. The more turnovers of accounts receivable, or the fewer days of accounts receivable turnover, indicate that the channels for realizing profit are more smooth.

From the perspective of the operation of assets, the total asset turnover rate of polyester raw materials industry was 0.60 in 1-6 months, and the total asset operating cycle (180 days/total asset turnover rate) was 301.76 days. The total number of asset turnovers increased, or the total The fewer days of asset turnover, the higher the efficiency of asset utilization.

The asset-liability ratio of the polyester raw material industry was 80.83% in the first six months of 2008, indicating that the operation of the financial policy was relatively positive; the return on net assets was 12.42%, indicating that the industry's net assets operating efficiency was better.

Table 4 Production and Sales Convergence and Asset Operation of Polyester Raw Materials Industry

5 Change of asset realisation capacity of polyester raw material industry

The export ratio of polyester raw materials industry in January-June 2008 was 5.96%, compared with 4.93% in the same period of last year. From the point of view of the industry's asset liquidity, the current ratio was 1.32 times in the first six months of 2008 (1.44 times in the same period of last year). ), The higher liquidity ratio indicates that the industry's short-term solvency is higher; the quick ratio in June-June 2008 was 0.77 times (0.81 times in the same period of last year) and the quick ratio was relatively high, indicating that inventory is not considered. In the following, the liquidity of corporate liquid assets was higher; the cash ratio in January-June 2008 was 0.44 times (0.57 times in the same period of last year), and the cash ratio was higher, indicating that without considering inventory and accounts receivable, The degree of protection of short-term solvency of enterprises is relatively high.

Table 5 Change of Asset Realization Ability of Polyester Raw Materials Industry

6 Change in Economic Scale of Unit Products of Polyester Raw Materials Industry

From the perspective of the change in the economic scale of the unit product, in terms of the output per ton of polyester raw material in the polyester raw material industry in China from January to June in 2008, the unit production value was RMB 9000.00/ton, and the single cost was RMB 7341.91/ton. The gross profit was 745.56 yuan/ton, the single three fee was 513.27 yuan/ton, the single profit was 324.47 yuan/ton, the single stock was 255.26 yuan/ton, and the single export was 393.16 yuan/ton. From this point of view, if the yield value is approximated as the industry average reference price per ton of polyester raw material production, then the single cost accounts for about 81.58%, the single gross profit accounts for about 8.28%, the single three-fold fee accounts for about 5.70%, and the single profit About 3.61%, single inventory about 2.84%, single export accounts for about 4.37%.

Table 6 Changes in Economic Scale of Unit Products of Polyester Raw Materials Industry

7 Changes in Cost Components of Polyester Raw Material Industry

From the perspective of changes in the cost structure of the unit product , the single gross profit of the polyester raw material industry in China in June-June 2008 was 745.56 yuan per ton per ton of polyester raw material output, and the single operation (operating expenses per unit of product) It was RMB 146.62 per ton, and the single management (the management fee per unit product) was RMB 243.05 per ton, the single finance (the financial cost per unit of product) was RMB 123.60 per ton, the single three fee was RMB 513.27 per ton, and the unit was very The non-recurring gains and losses are -92.18 yuan/ton, and the single profit (pre-tax profit) is 324.47 yuan/ton. If it excludes the impact of non-recurring gains and losses, the nominal pretax profit per unit product is 232.29 yuan/ton.

Table 7 Changes in Cost Components of Polyester Raw Materials Industry