Recently, statistics from the 2022 annual report released by 5067 listed companies on the three stock exchanges of Shanghai, Shenzhen and North China showed that a total operating income was 71.53 trillion yuan, an increase of 7.2% over the previous year; a net profit was 5.63 trillion yuan, an increase of 0.8% over the previous year. Specific to the petrochemical industry, the profitability of upstream and downstream companies is seriously divided.

The 2022 annual "report card" shows that the operating income of Sinopec, PetroChina and CNOOC has all achieved positive growth, with an overall operating income of approximately 7 trillion yuan and a net profit of approximately 360 billion yuan, of which the operating performance of PetroChina and CNOOC has reached a record high.

There is a strong correlation between international oil prices and the profits of the petroleum and chemical industry. Affected by factors such as rising international oil prices and high energy and raw material costs, the profits of Sinopec's petrochemical sector are under pressure. Six companies, including Rongsheng Petrochemical, Hengyi Petrochemical, Dongfang Shenghong, Tongkun Co., Ltd., and Xinfengming, achieved a total operating income of 840.121 billion yuan in annual reports, all of which increased from the previous year; while the net profit attributable to the parent company was a total profit of 5.051 billion yuan, a significant drop from the previous year. Even Rongsheng Petrochemical, which had the lowest loss, had a loss rate of 74.7%.

In terms of the basic chemical industry, listed companies in the industry will achieve a cumulative operating income of 2.619854 billion yuan in 2022, an increase of 18.95% over the previous year; and achieve a net profit attributable to the parent company of 244.987 billion yuan, an increase of 2.95% over the previous year. In terms of operating income, potassium fertilizer, lithium chemicals, food and feed additives, civil explosive products, fluorine chemicals, soda ash and other sectors performed well, while polyurethane dropped significantly compared with the previous year.

The most noteworthy thing in the annual report is that under the dual promotion of policies and markets, China's new energy vehicle industry continues to explode. Both revenue and profit of the battery sector maintained high growth. In 2022, operating income was 466.8 billion yuan, an increase of 126.3% over the previous year; net profit deducted from non-parent ownership was 32.02 billion yuan, an increase of 108.6% over the previous year.