It is understood that if Sinochem Group and Sinochem Group are successfully merged this time, it will be the fourth restructuring of central enterprises in the energy industry after China Power Investment and state nuclear technology (state power investment), Shenhua Group and state power group (State Energy Investment Group), and China Nuclear and China nuclear construction (CNNC group).

According to the public information, Sinochem Group is the fourth largest central petroleum enterprise in China, and its main business sectors include energy, chemical industry, agriculture, real estate, etc. In 2017, the operating revenue of Sinochem Group exceeded RMB 500 billion for the first time. CHEMCHINA group is the largest basic chemical manufacturing enterprise in China, with the main business of six business sectors including new chemical materials and special chemicals, basic chemicals, petroleum processing and refining products.

Data shows that in 2016, Sinochem Group's revenue was 395.5 billion yuan, an increase of 3.9% year on year, with a total profit of 8.07 billion yuan. Compared with Sinochem Group's bright report card, the profitability of Sinochem Group is not ideal. In 2016, CHEMCHINA's revenue was about 300 billion yuan, but its net profit was only 2.5 billion yuan, and its net profit margin was less than 1%. As of 2016, the total assets and liabilities of CHEMCHINA are about 377.6 billion yuan and 305.8 billion yuan respectively, and the asset liability ratio is over 80%.

Industry insiders said that although the asset liability ratio of CHEMCHINA group is relatively high, if CHEMCHINA group and Sinochem Group achieve a merger and can digest a series of high-quality acquisition businesses, the combined turnover of them will break through the 100 billion euro mark and become the largest chemical enterprise in the world. (reporter Li Zhenxing intern reporter Pu Zhenyu)