This report comes from China Development Network Currently, flue gas dedusting and denitrification are the two major business segments of air pollution treatment, and the market volume of air pollution treatment in China will keep increasing by about 10-15% in the next 5 to 10 years. In this context, relevant material and equipment manufacturers dedicated to air pollution treatment will have better development opportunities.
Anhui Yuanchen Environmental Protection Technology Co., Ltd. mainly provides energy-saving filter materials, high-performance low-temperature catalysts and other environmental protection core consumables for downstream customers in power, steel and coking, waste incineration, cement and other industries, and provides corresponding performance testing, online monitoring, product acceptance and solid waste recycling services. The company continues to develop and accumulate core technologies to build up competitive advantages, and its main customers cover well-known enterprises such as State Power Investment Group, CLP Guorui, Baowu Iron and Steel, Everbright Environment, Conch Cement and China Resources Cement. The company intends to use the funds raised mainly for the industrialization project of high performance dust filter media with an annual output of 4.6 million square meters, and the remaining part will be used to supplement the working capital, after the project is put into operation, the company will realize the improvement of the added value of existing products and the industrialization of new products of scientific research.
Broad market with policy support
Steady performance and rising gross profit
China has proposed to strive to reach the peak of carbon dioxide emissions by 2030, and strive to achieve carbon neutrality by 2060. And in the Central Economic Work Conference in December 2020, "do a good job of carbon peak, carbon neutral work" was listed as one of the eight key tasks in 2021; on February 22, the State Council again issued the "Guidance on Green Low-Carbon Cycle Development", pointing out that we should focus on energy conservation and environmental protection, clean production, clean energy, etc. Take the lead in breaking through and doing a good job of green transformation, and set the goal of significantly optimizing the industrial structure, energy structure and transportation structure by 2025, significantly increasing the proportion of green industries as well as the green transformation of production and lifestyle, which provides policy support for environmental protection companies engaged in collaborative treatment of pollution reduction and carbon reduction. At the same time, according to publicly available data, WIND theme industry environmental protection index for the past 20 days, the main net inflow of about 2.5 billion yuan, the net inflow of industry ranking is relatively high, to a certain extent, reflecting the environmental protection sector has recently gained capital favor, which is the main production of special equipment in the field of environmental protection in the secondary market constitutes a favorable.
Public information shows that the main business products of Yuanchen technology for all kinds of high-performance energy-saving environmental protection filter media and SCR denitration catalyst, the above products are mainly used in power, steel and coking, waste incineration, cement and glass industries and fields, specifically for the treatment of industrial flue gas in the soot and nitrogen oxides. Up to now, the company's filter bag products have been successfully applied in many domestic power companies with installed capacity of 1000MW and above units to achieve ultra-clean emission in the field of electric bag or bag type dust removal; the company's lime kiln catalysts have been successfully applied in the first set in China and exported to achieve ultra-clean emission.
In recent years, the company's fundamentals are facing the unchanged positive trend, data show that from 2017-2019, the company achieved revenue of 267 million yuan, 324 million yuan, 363 million yuan, respectively, with a compound annual growth rate of 16.6%; respectively, the net profit attributable to the mother of 0.36 billion yuan, 0.38 billion yuan, 0.59 billion yuan, with a compound annual growth rate of 28.02%. By product line, denitrification catalyst and high-efficiency low resistance filter bag are the main sources of revenue of the company. During the reporting period, the combined sales revenue of the above two products accounted for 94.38%, 94.60% and 95.83% of the main business revenue, showing a trend of continuous increase.
Meanwhile, benefiting from the widening application fields of denitrification catalysts with higher gross margin and continuous increase in market demand, the Company's overall comprehensive gross margin is also in an upward channel, rising from 32.86% in 2017 to 47.76% in the first half of 2020.
Focus on future cutting-edge technology
Continuously increase the innovation of research and development
Along with the upgrading of national environmental protection standards, the huge market demand for denitrification catalysts with high activity, wide temperature difference and strong anti-toxicity features, which can adapt to various harsh flue gas environments, is driving the innovation and progress of the products. Meanwhile, with the integration of dust removal industry with desulfurization and denitrification, the whole air pollution treatment market will develop in the direction of technology-intensive industry, and in the future, companies with core technology advantages are expected to gain a broader market share.
Since its establishment, Yuanchen Technology has always adhered to independent innovation and continued to increase investment in research and development. Data show that from 2017-2019 and the first half of 2020, the company's R&D expenses reached 13,481,400 yuan, 16,390,800 yuan, 19,058,200 yuan and 10,825,100 yuan respectively, accounting for 5.05%, 5.06%, 5.25% and 6.04% of the operating revenue in the same period, which provides the company with This provides a certain guarantee for the company to consolidate and expand its technical competitive advantage.
Based on years of deep cultivation in the industry, Yuanchen Technology has formed certain technical advantages in the field of flue gas purification and filtration new material series environmental protection products. In the field of dust removal and filtration materials, the company has independently innovated core technologies such as asymmetric gradient technology of super clean electric bag, PTFE composite emulsion permeable membrane technology and integrated technology of dust removal and denitrification, etc. Taking the asymmetric gradient technology of super clean electric bag as an example, the company has developed a new type of high-efficiency ultra-low emission filtration materials for coal-fired power plants by using this technology, which has been awarded as a high-tech product in Anhui Province and passed the evaluation of scientific and technological achievements by China High-tech Industrialization Research Association. The products have been successfully applied in domestic coal-fired power plants above 1000MW and 600MW, and have achieved ultra-clean emission. In the field of denitrification catalysts, the company has high efficiency SCR denitrification technology for power plants and NOx-dioxin synergistic removal technology, etc. The industrialization project of the above technologies, "Key Technology Research and Industrialization of Industrial Tail Gas Denitrification", won the second prize of Science and Technology Progress of Anhui Province.
It is worth mentioning that Yuanchen Technology not only has many projects under research and development, such as ceramic fiber coated filter research and development, ultra-low temperature SCR denitrification catalyst research and development, but also has a detailed plan for the next 3 to 5 years, and the relevant technology reserve has a certain degree of foresight. In addition, the company has established multi-level and multi-faceted technical cooperation with many universities and research institutions. The continuous deep plowing of R&D will become a strong engine for the company's continuous business growth.
Two main products help carbon neutrality
Realize green and sustainable development
The sources of CO2 emissions in China are mainly traced back to the power sector (40%), industrial energy (38%), construction (10%) and transportation (10%). In order to reach the goal of carbon neutrality, carbon emissions and carbon footprints need to be reduced in each of these areas to achieve carbon neutrality as early as possible. The use of new materials such as high efficiency and low resistance filter bags and ultra-low temperature catalysts is essential in the process of collaborative management of pollution and carbon reduction.
Yuanchen Technology adopts high efficiency and low resistance product design, the filter media is easy to clean ash, the resistance is lower than conventional filter media, for the customer's induced draft fan energy consumption has been greatly reduced, greatly saving energy consumption, take 300MW coal-fired power plant as an example, 10,000 filter bags, the total area is about 40,000 square meters, in the full load production process, the processing flue gas volume is about 1 million m3/h, Yuanchen Technology brand filter media than conventional filter media differential pressure is about The differential pressure of Yuanchen Technology brand filter media is about 200-300Pa lower than that of conventional filter media, which is estimated to save energy consumption of about 200-300 thousand/year. At present, the annual output of filter bags of Yuanchen Technology is about 2.6 million square meters, and according to this output, it can save energy costs of about 13-19.5 million for end customers every year.
At present, the emission concentration of Yuanchen Technology products can be reduced to 10mg/Nm3 or even below 5mg/Nm3, which can greatly reduce the emission compared with the current conventional 30mg/Nm3 requirement. At present, the annual output of filter bags of Yuanchen Technology is about 2.6 million square meters, which can reduce dust particle emission by about 11,700 tons/year, which is equivalent to saving 250,000 tons of standard coal/year and reducing CO2 by 520,000 tons/year.
At present, the way to deal with old filter bags is by landfill and incineration, which will cause secondary pollution to a certain extent. At present, Yuanchen Technology recycles used filter bags free of charge for customers, and cooperates with domestic colleges and universities to develop used fluoroether materials, and realizes resource recycling through fiber separation and high-end composite plate production and processing.
The ultra-low temperature catalysts and denitrification catalysts developed by Yuanchen Technology can achieve energy saving and consumption reduction in sintering machines in terms of energy management, and help reduce emissions and realize product recovery and recycling. For example, the low temperature catalyst for steel sintering machine developed by Yuanchen Technology can realize denitrification of sintering flue gas at 180°C. The flue gas volume of a 120 flat sintering machine, for example, is about 800000Nm3/h, which can save 5370 tons of standard coal per year, equivalent to about 14445 tons of CO2.
Commitment to circular economy
Win-win Green Development
The scale of HW50 waste catalyst can be treated is 3300 tons/a. According to the current scale of waste SCR denitrification catalyst treatment, the annual electricity consumption can be saved from 1485000 to 2722500kWh, which can be converted into standard coal to save 182.5 to 334.6t standard coal per year, which can be converted into CO2 emissions can be reduced from 490.9 to 900.1t CO2 per year.
Developing green circular economy, helping to achieve carbon neutrality, and contributing to the world's environmental friendliness and human health are the directions that Yuanchen Technology keeps exploring and pursuing.
