Gimpo Group: 7.58 billion yuan to promote technological innovation and new project construction

In the face of the financial crisis, Jiangsu Gimpo Group took the initiative to tackle technological innovations, focusing its efforts on the development of new products, polyurethane, and achieved success. Sun Cheng, executive vice president of Gimpo Group, said that from January to March this year, the Group completed a total tonnage of industrial products of 247,000 tons, and achieved sales revenue of industrial products of 2.137 billion yuan, a year-on-year increase of 12.8%, a growth of 3.8%, and a profit and tax of 96 million yuan.

    Sun Cheng said that Gimpo Group takes petrochemical industry as the core industry and currently has more than 10 subsidiaries including Nanjing Petrochemical, Zhongshan Chemicals, Jinling Plastics, Nanjing Titanium Dioxide and North China Chlor-alkali, including 3 high-tech companies, involving chlor-alkali, polyurethanes, and synthetics. Resin, synthetic rubber, titanium dioxide and fine chemicals and other industrial chains. The group has total assets of 8.675 billion yuan and nearly 10,000 employees. In recent years, the Group has undertaken the national “15th Five-Year” and “Eleventh Five-Year” scientific and technological research projects, and has possessed a number of core technologies and independent intellectual property rights in the petrochemical fields involved. In 2008, it was included in the “Top 500 Chinese Manufacturing Enterprises”. Rank 209, "China's chemical raw materials and chemical manufacturing industry" eighth.

    The financial crisis last year caused the sharp decline in the petrochemical market and brought a serious impact on the Gimpo Group. Faced with the rapidly changing market environment, Gimpo Group timely and comprehensively analyzed the severe situation facing the company, researched and formulated countermeasures, and proposed countermeasures that focused on new product development and technological transformation, and strengthened capital and inventory risk control. Follow the principle of "fast forward and fast out, no inventory", and resolutely prevent product backlog from being a factor that plagues production. Under the fast-forward and fast-out operation, even if the international polypropylene price dropped from 17,000 yuan/ton to 6,000 yuan/ton, the sales of the company have not been affected much.

    In response to timely adjustments, Gimpo Group achieved sales revenue of 6.6 billion yuan in industrial products and 550 million yuan in profits and taxes in 2008. At the same time, a number of major projects such as the Jinan-Civil Integrated Project, titanium white relocation project, and Nanfang Petrochemicals Relocation Project were completed and put into operation on schedule.

    Since the beginning of this year, even though the international financial crisis is still spreading, after the Gimpo Group objectively analyzed the economic situation at home and abroad, it still worked out a goal of increasing sales and profits by more than 20%. Sun Cheng said that this goal can be achieved on the basis of the successive production of new projects. At the same time, in order to integrate the upstream and downstream petrochemical products of the Group, the industries are interconnected, a network structure is formed, and the overall anti-risk capability is improved. It is planned to invest 7.58 billion yuan within three years to promote the key technological transformation and new project construction. We will strive to achieve a target of 2 million tons gross tonnage and sales revenue of 20 billion yuan in 2011.

    Nanjing Petroleum & Chemical Corporation, a member of the Gimpo Group, has started listing operations since last year. Sun Cheng disclosed that “As long as the IPO gate of the State Securities Regulatory Commission opens this year, it is expected to land in the first batch of A-share market.”

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