Affected by events such as trade frictions between China and the United States in 2019, the downward pressure on the domestic economy continued to increase, and many energy and chemical enterprises have had a difficult year. With the signing of the first phase agreement between China and the United States, an unexpected "COVID-19" epidemic has swept across the country and spread to the whole world in a short time, just as everyone is full of expectations for the coming 2020 and is preparing to rally to catch up with and promote the country's historical fast train to achieve a well-off society in an all-round way. In a large country with a population of 1.4 billion, cities and towns do not leave their homes, and rural areas do not leave their villages. The Spring Festival of the Year of the Boxer Rat and this major epidemic will undoubtedly be recorded in history and engraved in the minds of the Chinese people for a long time.

      So, from the perspective of the energy and chemical industries, what significant impacts will this pandemic bring? What significant changes will industry enterprises undergo in response to changes in the situation and environment?

        Supply side structural reform accelerates, leading enterprises will seize the opportunity to expand their territory

       This major epidemic has brought significant tests and impacts to all business groups, and the impact will continue for a period of time. The biggest difference between the current domestic energy and chemical market and the mature market economy market lies in the large number and scattered distribution of our enterprises, with nearly 30000 enterprises above designated size and a total of 100000 small and micro enterprises, which brings a series of problems such as difficult management, market disorder, and high safety and environmental protection risks. Focusing on park orientation, merger and reorganization, we have promoted the concentration, agglomeration and intensive development. The concentration ratio of the energy and chemical industry has continued to increase in recent years. More and more industry enterprises have entered the list of the top 500 Chinese enterprises, the top 500 world enterprises, and the top 50 global chemical enterprises. And this sudden major epidemic will further accelerate this process, reflected in the elimination of weak tail enterprises and the further expansion and strengthening of leading top enterprises, which is also in line with the direction of supply side structural reform in the industry.

       稳健经营的理念 将更加强化和成为主流

       This epidemic is an extreme stress test of the Chinese economy and Chinese enterprises, and in a very short period of time, it directed a manifestation of risk resistance. Xibei, a rising enterprise in the domestic catering industry, revealed that its cash flow could not last for three months, which attracted a lot of roast from enterprises in the same situation. From the perspective of the energy and chemical industry, many enterprises also report that raw materials can not support for half a month, cash flow can not support for two months, and so on. The risk exposure of enterprise operation is undoubtedly fully exposed.

       Building an independent logistics system may become a new trend

      Logistics obstruction is a relatively concentrated issue reported by many energy and chemical enterprises after the outbreak of the epidemic. This is due to special restrictions imposed by local management departments due to the need for inspection and quarantine, as well as the fact that enterprises do not have independent logistics systems and are severely constrained by socialized transportation services.

      After the epidemic, in view of the weakness and risk exposure of the independent logistics system, it is believed that many powerful large enterprises will explore the self built logistics system to achieve the integration and coordination of self built logistics and existing businesses. In this regard, Chuanhua Group, a key private chemical enterprise in Zhejiang Province, is a pathfinder. The company has established professional Chuanhua Logistics Company and Chuanhua Zhilian Co., Ltd. many years ago to build an intelligent logistics platform based on the concept of "national network of highway ports", which not only solves the problem of material transportation of enterprises themselves, but also provides systematic and professional logistics services for shippers and logistics enterprises across the country, We have achieved remarkable results in business growth and collaboration.

        Establishing a multi-dimensional and more stable supply chain will receive more attention

       A chemical enterprise is a conversion factory that converts raw materials into products. For most energy and chemical enterprises, conversion processing is autonomous and controllable, while raw material entry and product outbound transportation are susceptible to many unpredictable and unpredictable risks. The impact of this epidemic is precisely this weak point, where raw materials cannot be imported and products cannot be exported, leading to the suspension and paralysis of enterprises.

       After the epidemic, it is believed that more companies will carefully examine this issue and find ways to fill this gap. One way is to establish a multi-dimensional and more stable supply chain. In terms of ensuring the supply of raw materials, in addition to marketization, we can also explore models such as "direct supply of coal", "direct supply of oil", and "direct supply of materials" that are jointly operated by strong forces to hedge the risks of single line supply.

       现Jinliu safety mat will establish standards and specifications

       Research shows that under the continuous fermentation of the epidemic, 70% of domestic enterprises can maintain cash flow for three months. After the epidemic, whether maintaining cash flow for at least 3 months will become a standard and norm in the business community to cope with unpredictable risks and tests is highly anticipated. The energy and chemical industries are typical heavy asset industries, with high demand and fast flow of funds. Establishing a cash flow safety cushion is particularly important in practical significance.

       For a country, it is best to maintain its strategic oil reserves for more than 90 days, and its significance needs no further explanation; For enterprises, the great companies in the world have the habit of "hoarding cash". With money on hand and a calm mind, they can not only prepare for unexpected needs, but also calmly take advantage of high-quality assets in the event of a sudden crisis. This is actually a two appropriate move to advance and retreat.

       IntelligentWill be more respected, and machines will replace humans to further accelerate.

      

       For manufacturing enterprises such as energy and chemical industries, utilizing new technological means to promote the construction of intelligent factories, reduce the number of people and personnel density, not only has strategic significance for improving production efficiency and quality of enterprises, but also has special functions for crisis emergency response. I believe that after the epidemic, industry enterprises will soon come back to their senses, and the construction of smart factories for enterprises in the energy and chemical industries will become a trend and enter a new stage.

        The crisis response mechanism for industry enterprises will become more mature and improved

       People often say that 'the past is the teacher of the future', and we must constantly summarize our lessons to avoid repeatedly 'falling into the same river'. But the unity of knowledge and action in practical activities determines the maturity of each major prevention mechanism, which requires repeated testing and polishing through practice. Every small progress is not easy to come by. Our country has also established various types of public safety emergency mechanisms, but objectively speaking, this sudden epidemic has exposed that there are still significant loopholes in the emergency mechanism for major public health crises in the country. There is a surplus of macro and general nature, but insufficient guidance and practicality. After the epidemic, further upgrading and improvement are urgently needed.

       The country is like this, and enterprises are like this. This epidemic must become a major opportunity for us to further improve our own prevention and emergency mechanisms. To address the issue of paper-based decision-making and decision-making in emergency response mechanisms, and to make them more guiding and practical, it is necessary to make up for and improve them one by one by comparing the actual problems and shortcomings exposed by enterprises during the epidemic process. In addition to the common issues of transportation, raw materials, and cash flow mentioned earlier, this epidemic has also exposed the widespread problem of insufficient emergency supplies preparation in enterprises, including masks, disinfectants, drugs, etc. To prevent unpredictable conditions, it may be very necessary for enterprises to establish a "small medicine box" system and reserve a certain amount of medical emergency supplies during this epidemic.