On April 3, Yancheng City, Jiangsu Province, decided to completely close the Xiangshui Chemical Industry Park. At the same time, we should do a good job of the chemical industry renovation work in the whole market, according to the provincial chemical industry renovation and upgrading program, further raise the renovation standards of the city's chemical industry parks and chemical enterprises, and support the construction of various regions & ldquo; Wuhua District & rdquo;.
It is noteworthy that some listed companies have subsidiaries in Xiangshui Chemical Industry Park, involving dyestuffs, pharmaceuticals, pesticides and other sub-industries. If the park is completely closed, it will undoubtedly have some impact on these listed companies.
Several listed companies issue risk alert announcements
In response to reports of the complete closure of Xiangshui Chemical Industrial Park, several listed companies in Jiangsu, such as Wuzhong, Lianhua Science and Technology, Anoqi, Tongcheng New Materials and Jacques Technology, responded.
Jiangsu Wuzhong Industrial Co., Ltd.
On April 8, the full-owned subsidiary of Xiangshui Henglida Science and Technology Chemical Co., Ltd. risk warning announcement.
Xiangshui Henglida was temporarily suspended due to an explosion accident in the afternoon of March 21, 2019 in a chemical enterprise of Chenjiagang Chemical Park, Xiangshui County, Yancheng City, Jiangsu Province.
The announcement said that as there was no formal relevant treatment plan and measures for the complete closure of Xiangshui Chemical Industrial Park, there was great uncertainty about how Henglida would deal with it in the future. The company will maintain communication with relevant government departments and pay close attention to the progress of the situation. If the Xiangshui Chemical Industry Park is completely closed, Henglida will not be able to produce in the park. The company will seriously organize discussion and Study on the specific directional decision-making of the subsequent closure and transfer of Henglida according to the requirements of relevant government departments, and strictly implement the relevant decision-making procedures.
Influenced by the above uncertain objective factors, there may be a large amount of accounting for the goodwill formed by the acquisition of 100% equity of Singshui Hengli; if the total accounting is taken, it will lead to a loss of public performance in 2018 (the matter is still uncertain).
Tongcheng New Materials Group Co., Ltd.
On April 8, a risk warning announcement was issued that Tongcheng Refining Chemical Company, a holding subsidiary, is located in Xiangshui Chemical Industrial Park, and is in the construction period of the project itself. It has not actually started construction. Affected by explosion shock wave, Tongcheng Refining has no casualties and slightly damaged buildings.
The announcement said that as there is no formal relevant government treatment plan and measures for the closure of Xiangshui Chemical Park, the company will keep in touch with relevant government departments and pay close attention to the progress of the situation. According to the requirements of relevant government departments, the company will seriously organize discussions and study specific directional decisions such as the subsequent closure and transfer of Tongcheng Refinement, and strictly implement the relevant decision-making process. Preface. Preliminary estimates do not have a significant impact on the company's performance in 2019, and follow-up information disclosure obligations will be fulfilled based on the test results.
Lianhua Technology
On the afternoon of April 8, it was announced that the subsidiaries of Jiangsu Huasoviet Union and Yancheng Lianhua were both located in Xiangshui Chemical Industrial Park. An explosion accident occurred in a company in Chenjiagang Town, Xiangshui County, causing casualties and property damage, and temporarily suspended production.
The announcement said that the company and its subsidiaries, Jiangsu Soviet Union and Yancheng Lianhua, had not yet received relevant government documents concerning the above-mentioned matters (Editor's Note: Closing the Xiangshui Chemical Industrial Park), and there was greater uncertainty about how to deal with them in the future. Affected by the accidents of other enterprises in the park, the company's subsidiaries Jiangsu Soviet Union and Yancheng Lianhua are in a state of suspension. The above-mentioned personnel and property companies have purchased relevant insurance. At present, insurance companies and valuation companies have arrived at the scene to start the work of fixing losses and claims.
Lianhua Science and Technology emphasizes that the company will take various positive measures, fully prepare various plans to deal with possible situations, and take advantage of the company's multi-regional production, domestic and foreign linkage to reduce and resolve the various risks that may be faced.
Jacques Technology
In the afternoon announcement of April 8, the wholly-owned subsidiary of Xiangshui Jacques Chemical Co., Ltd. has not resumed production since its shutdown in May 2018.
Recently, the media released reports about the closure of Xiangshui Chemical Industry Park in Yancheng City, where Xiangshui Jacques is located. Xiangshui Jacques is involved. Since its shutdown, Xiangshui Jacques has not resumed production. With the implementation of the company's transformation and upgrading strategy in recent years, LNG enhanced insulation sheet business and semiconductor new materials business began to contribute revenue and profits. The dependence of the company's overall performance on flame retardant business has declined dramatically, so the aforementioned events have no substantial impact on the company's current production and operation.
The announcement said that if the Xiangshui Chemical Industry Park is completely closed, the company will actively take various measures to deal with possible situations, take advantage of the advantages of having multiple production bases, and combine with external procurement measures to reduce and resolve various risks that may be faced.
anoky
Up to now, the company and its subsidiary, Jiangsu Anuo, have not received written notice from the local government to close the Xiangshui Chemical Industrial Park. Since the explosion of Jiangsu Tianjiayi Chemical Co., Ltd. on March 21, 2019, its subsidiary, Jiangsu Anuo, has temporarily stopped production.
According to the announcement, Jiangsu Anoqi mainly engaged in the production of reactive dyes, its net profit accounted for a relatively small proportion of the company's overall net profit, accounting for 12.58% in 2017 and 13.15% in 2018. Therefore, the temporary suspension of Jiangsu Anoqi will not have a significant impact on the company's production and operation in 2019.
Jiangsu intends to introduce the most stringent chemical renovation plan
According to Pengchao News, Jiangsu Province Chemical Industry Regulation and Promotion Program (draft for comments) was issued by the General Office of Jiangsu Province Government on April 1.
In the "Program", Jiangsu Province has made it clear that by the end of 2020, the number of chemical production enterprises in the whole province will be reduced to 2000; by 2022, the number of chemical production enterprises in the whole province will not exceed 1000.
The plan also requires that all efforts should be made to promote the renovation and upgrading of chemical industry parks, and that 50 chemical parks should be transformed into industrial parks in Jiangsu Province.The comprehensive evaluation of the industrial park was carried out. According to the evaluation results, it was reduced to about 20.
It is understood that Jiangsu Province's draft proposal mentioned that the number of chemical production enterprises along the Yangtze River should be reduced. Thirty-four enterprises within a kilometer on both sides of the main and tributary of the Yangtze River and outside the chemical park will withdraw in principle by the end of 2020. Indeed, enterprises that cannot be relocated should carry out safety risk and environmental risk assessment one by one; 254 enterprises in the chemical park should complete enterprise-by-enterprise assessment and put forward disposal suggestions by the end of 2019, and all enterprises with no industrial chain connection and great potential safety and environmental protection risks in the park should withdraw by the end of 2020.
Chemical stocks go up and down

The complete closure of Xiangshui Chemical Park, the great renovation of the chemical industry in Jiangsu Province, exceeding the expectations of the renovation hurricane, has let the industry see the major adjustment of the industry.
Prices of chemical raw materials are expected to rise. Chemical stocks rose collectively in the morning of April 8, with Shenwan plate rising more than 4.3%.
By the end of the day, the Shanghai index had fallen 0.05%, the Shenzhen index had fallen 0.61%, and the GEM index had fallen 2.12%. The chemical industry sector is experiencing ups and downs. The volume of chemical industry index has risen by 4.41%. Trading volume of the chemical industry sector is 94.79 billion yuan. More than 50 stocks are up and down. Trading volume has increased by about 20 billion yuan compared with the previous trading day. However, Lianhua Technologies fell 9.98% and Wuzhong, Jiangsu, 5.29%.
Domestic futures market closing mostly flushed red, black series, energy chemicals, polypropylene rose more than 3%, coke, methanol, PVC, PTA rose more than 2%, PTA once stopped.
Institutions believe that in the long run, the 321 explosion has become a turning point in the industry, promoting supply-side reform in Jiangsu and coastal provinces.
Jiangsu is a concentration area of chemical products. The regulation has a great impact on fine chemical products. It will change the competition pattern of the industry in the next three to five years, involving dyes, pigments, pesticides and pharmaceuticals. The price of a single variety may skyrocket and have great elasticity.
Xinda Securities holds that Jiangsu Province is a major producer of chemical industry in China, especially pesticides, dyes and petrochemicals. The number of chemical enterprises is the first in the country, and there are more than 4500 Chemical Enterprises above the scale. Therefore, the accident will become a turning point in the development of China's chemical industry and will have a profound and long-term impact on China's chemical industry.
Guotai Jun'an believes that the recent Tianjiayi major safety accident in Jiangsu Province has opened the curtain of the province's chemical industry renovation, indicating that the supply-side logic of the chemical industry extends from environmental protection to safety. At present, three main lines of investment are proposed: dyes, pesticides and industry leaders.
Huatai Securities believes that the future development model of the chemical industry or change, long-term good integration of normative leading enterprises. As the impact of the accident continues to deepen, the supply side of the chemical industry is expected to turn around. In the long run, the industry development mode is facing changes, and the supply side is expected to be reconstructed, & ldquo; small, scattered and disordered, & rdquo; and the industry ecology will be replaced by large-scale, centralized and integrated chemical industry parks.
Founder Securities believes that the leading chemical enterprises in the chemical industry park, which have more standardized management of safety and environmental protection and will continue to expand production capacity in the future, will have higher premium power.
Everbright Securities believes that after the explosion of Jiayi Chemical Industry in Tianjin, the market expects that the probability of resuming work after the shutdown and transformation of Xiangshui Chemical Industry Park is relatively high. But at the weekend, Yancheng took the renovation measures of shutting down the sound water park, which greatly exceeded the market expectations. It should be emphasized that this is the starting point of a new round of supply-side reform. This is the fundamental nature of this round of chemical market.
Some market participants believe that in the recent futures market, the prices of several chemical products have not risen significantly. At present, only concepts are hyped in the chemical industry sector, which is divorced from the fundamentals, and the premium is too high. Investors need to pay attention to risks.
At about 1448 hours on March 21, 2019, an explosion occurred in the chemical storage tank of Jiangsu Tianjiayi Chemical Co., Ltd. in the chemical park of Chenjiagang Town, Xiangshui County, Yancheng City, Jiangsu Province, and affected 16 surrounding enterprises. At present, 78 people were killed in the accident.
This article synthesizes: Shanghai Stock Exchange/Shenzhen Stock Exchange related announcements, surging news, Securities Times & middot; e company, etc.