CHENGZHI(SZ:000990)2022-12-03 09:56Company Overview - Chengzhi Co., Ltd. was established in September 2003 with a registered capital of approximately 3.686 billion CNY and occupies an area of 54 hectares. The company has completed multiple production facilities in three phases, with a fourth phase project of 600,000 tons MTO currently under construction [2][3]. Product and Market Position - The company specializes in the production and operation of various gases, co-producing methanol, olefins, and other products, aiming to become a leading industrial gas supplier in China. It has established a complementary industrial chain in the Nanjing Chemical Industrial Park, focusing on resource optimization and cooperative benefits [3][4]. - Chengzhi's main products include industrial gases (synthesis gas, carbon monoxide, hydrogen, etc.) and basic chemical raw materials (ethylene, butanol, etc.), primarily serving large downstream customers within the Nanjing Chemical Industrial Park [3][4]. Sales and Pricing Strategy - Industrial gas products are sold through long-term supply contracts, with pricing based on infrastructure fees and variable gas fees. Liquid chemical product prices are determined by market rates [4]. - Ethylene pricing is primarily referenced against Northeast Asia prices, adjusted monthly considering tariffs, VAT, and logistics costs [4]. Operational Strategy - The company follows a strategy of "binding upstream, stabilizing midstream, and enriching downstream" to ensure raw material supply and explore high-tech, high-value-added product lines. It aims to enhance risk resistance and improve operational efficiency [5]. - Chengzhi emphasizes safe and stable high-load operations, cost reduction, and efficiency improvement, with a focus on completing the 600,000 tons/year MTO project and achieving performance targets for 2018 [5].