Research On The Business Performance Of Wanhua Chemical From A Diversified Perspective

The chemical industry,as a key industry supported and developed in China,plays an important role in the economy.However,while the chemical industry is developing rapidly,there are also problems such as a single product structure,overcapacity,unstable business performance,and significant industry cycle fluctuations.Therefore,how to achieve relative stability in business performance is an important issue in front of every chemical enterprise.Wanhua Chemical is one of the most influential enterprises in China’s chemical industry.In recent years,through the implementation of diversified development strategies,Wanhua Chemical’s business performance has shown a steady growth trend.Therefore,studying Wanhua Chemical’s business performance and the reasons for its steady growth from a diversified perspective is of great significance.This article adopts literature research and case analysis methods.Firstly,it reviews existing literature and conducts theoretical analysis using technology innovation theory,synergy theory,and risk diversification theory.Secondly,based on the definition of relevant concepts,the Herfindahl index method and specialization rate are used to evaluate the degree of diversification of Wanhua Chemical,and SWOT analysis method is used to explore the diversification motivation of Wanhua Chemical.Subsequently,a comparative analysis was conducted on the financial and non-financial performance of Wanhua Chemical from 2010 to2015 and from 2016 to 2021.The research results indicate that through implementing effective diversification strategies,Wanhua Chemical’s non-financial performance and financial performance have significantly improved.The research in this article not only provides strong theoretical support for the implementation of Wanhua Chemical’s diversification strategy,but also helps to further improve Wanhua Chemical’s business performance.It can also provide reference for the healthy development of China’s chemical industry and the government’s formulation of more scientific and reasonable policies.