Well begun is half done
Actively responding to the complicated market situation and the impact of the epidemic, ChemChina achieved good performance in the beginning of the new year by focusing on growth, cost cut and efficiency increase.
As at the end of January, the Group realized a revenue of RMB35.2 billion, representing an increase of 6.7% year on year. The net profit growth rate booked 125% over the same period of last year, marking a good start in the first month and laying a solid foundation for fulfilling the full-year budget.
At the beginning of the new year, the Group held the 2021 work conference to set down its target and plans. Accordingly, all subsidiaries moved up in compliance with new development concepts and pattern.
Focus on growth
The subsidiaries managed to center on high-growth market segments to achieve sales growth and market development. In particular, Bluestar Dongda adhered to differentiated competition by following the path of customization and continuously developing high-end customers. It formed cooperative relationships with Huntsman and BASF on the basis of meeting special needs of two companies and providing customized polyether products in the new application field. The initial purchase volume of these companies has reached more than 1000 tons per month.
ChemChina’s rubber machinery enterprises have started the "Marketing Management Cockpit" program in an all-round way. Externally, they tried to meet the application needs of customers and create suitable products and technical solutions by visiting customers and using the BI platform and SAP platform for data analysis. Internally, they improved management, promote the coordination of marketing, technology and production, and enhance the overall operation level, thus creating more value for customers. As a result, Yiyang Rubber signed an internal mixer contract with a large tire factory in Thailand, which was valued at RMB30 million and marked a good start of the year. At the same time, the amount of new orders signed by Guilin Rubber Machinery hit record high since 2017.
Refine management
In response to key market segments, ChemChina companies explored customer needs and actively adjusted their product structure. They also made bold innovations and pushed forward the reform of their business models. Among them, ChemChina Petrochemical Co flexibly increased the production of China VI 95# gasoline and -20# automobile diesel oil in combination with the changes in weather and market demand. It expanded the product categories, and further increased the market share and profit margins.
Nantong Xingchen strengthened the development of high-margin product segments, expanded the business width by developing 628 customers online, and modified products accounted for over 50% of the total sales volume. In addition, it spent efforts in cultivating key customers in fields of automotive fuse box, lights, high-end relays and capacitors. The PPE product chain closely followed the development opportunity of new infrastructure construction and vigorously explored the overseas market. Substantial breakthrough has been made in Japanese phenol market. The company achieved sales volume of PPE products of 4136 tons and phenolic products of 999 tons, both hitting a record high.
In Science We Trust
The Group stepped up tackling core technologies and enhanced its capacity for independent innovation. Under the guidance of innovation drive, Zhonghao Chenguang Institute implemented key technology research projects, optimized product mix, and always stuck to the bottom line of safety and environmental protection. By means of digital marketing, it realized continuous innovation and sales growth of products with high technology content and high added value.
Comprehensive benchmarking
Targeting on the weak links, each subsidiary carried out management benchmarking in depth, and built a strong atmosphere for benchmarking. Combining with the adjustment of product structure and market strategy, Aeolus Tyre adjusted its brand & wholesaler layout, and vigorously introduced more excellent wholesalers to complete the brand presence in the weak market. The move laid a foundation for overall improvement of brand awareness and continuous stability of sales.
In terms of marketing, ChemChina has kept on its 100-day marketing competition for 12 years, with the theme of "strengthening data decision-making, refining customer management, innovating marketing modes, and improving the profit margin."
All companies enhanced their marketing management and decision-making based on data. They refined the marketing strategy by improving the customer management capacity supported by CRM database. Measures were also adopted to improve satisfaction of customer demands and innovate the marketing mode.