This report is from the securities network: Anhui Yuanchen Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Yuanchen Technology") is mainly engaged in the research and development, production, sales and services of energy-saving and environment-friendly filtration materials for flue gas purification, and provides corresponding online monitoring, environmental testing and hazardous waste recycling services. We are committed to the development and production of new materials and the integration of upstream and downstream industry chains in the field of pollution reduction and carbon synergistic treatment for a long time.
From 2017 to 2020, the company will achieve operating revenues of RMB 267 million, RMB 324 million, RMB 363 million and RMB 458 million respectively; and achieve net profit attributable to the mother company of RMB 0.36 billion, RMB 0.38 billion, RMB 0.59 billion and RMB 0.63 billion respectively.
Recently, Yuanchen Technology made an initial public offering of new shares and was listed on the SSE's Science and Technology Board, raising funds to be used for "the industrialization project of annual production capacity of 4.6 million square meters of high performance dust filter media", which is another historic moment of Yuanchen Technology's long development in the industry.
Carbon Neutrality Opens New Track for Environmental Protection Industry
In September 2020, at the 75th session of the United Nations General Assembly, President Xi proposed for the first time the goal of "striving to peak carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060", pointing the way for China to achieve green and low-carbon development, thus ushering in a huge development opportunity for the environmental protection industry. On March 13, 2021, the 14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of Vision 2035 (the "14th Five-Year Plan") was officially announced, proposing "the implementation of the 2030 national autonomous contribution target to address climate change, and the development of a carbon emission peaking action plan by 2030. The "14th Five-Year Plan" was officially announced. On March 12, the performance of carbon neutral concept stocks continued to be strong, with a number of power stocks such as Wenshan Power and Huayin Power rising. And according to flush statistics, as of March 12, flush carbon neutral index rose 9.89% since March, 61 constituent stocks, a total of 56 recorded positive gains in the month, accounting for up to 91%.
To achieve carbon neutrality, one of the most urgent measures is to vigorously control air pollution, and Yuanchen Technology is the one who has been working in this field for many years.
The main business products of Yuanchen Technology are various kinds of high efficiency and low resistance dust filter bags and medium and low temperature SCR denitrification catalysts, which are specially used for the treatment of soot and nitrogen oxides in industrial flue gas while saving energy and increasing efficiency. The market demand, technology level and the development and growth of the industry are closely related to the deepening of national environmental protection requirements. Pollution emission control tightening is the key factor that prompted the rapid development of baghouse dust, flue gas denitrification industry, baghouse dust and denitrification industry is a policy-driven industry, in recent years, a number of industrial policies have been promulgated to encourage the manufacture and application of flue gas dust, denitrification products, such as priority development support.
The report of the 19th National Congress proposed to adhere to the common treatment of all people, source prevention and control, and continue to implement air pollution prevention and control actions to win the battle of blue sky, pollution prevention and control has been upgraded to a national strategy and included in the "Thirteenth Five-Year Plan" three major battles. Under such a policy background, the long-term growth of Yuanchen Technology is favorably guaranteed.
The products of Yuanchen Technology are mainly used in industries and fields such as power, steel and coking, waste incineration, cement and glass, etc. The main customers are well-known companies in the industry such as Longjing Environmental Protection, State Power Investment Group, CLP Guorui, Everbright Environment, Shougang Jingtang, Anfeng Steel, China Resources Cement and Xinyi Glass.
Huge demand for flue gas treatment in non-electricity industries
With the rapid development of economy, the air pollution problems brought by the development of China's electric power, waste incineration, cement, steel and other industries have become more and more prominent. The state attaches importance to the pollution control from the source, and the emission standards of air pollutants are becoming more and more strict, which makes the downstream industries have more room for upward adjustment and technological upgrading. With the increasing requirements of national pollution control, filter materials and denitrification products have a broad market development prospect, thus bringing new market opportunities for Yuanchen Technology, especially in the non-electric industry.
The main sources of soot and NOx emissions in the atmosphere are the power industry and non-electric industries such as steel and cement. After effective treatment, thermal power industry has been transformed from a key industry in air pollution control to a model industry in air pollution prevention and control. Compared with the reduction of pollutants in the thermal power industry, the non-electricity industry has an increasing impact on China's pollution emissions.
The National Economic Statistical Yearbook shows that in 2018, China produced 930 million tons of iron and steel, accounting for 51% of the world; 2.21 billion tons of total cement clinker production, accounting for 56%; 870 million cases of flat glass, accounting for 52%, and 36 million tons of electrolytic aluminum, accounting for 57%. In addition, China is also distributed more than 400,000 units of a large number of coal-fired boilers. Among them, flue gas dust and NOx emissions accounted for more than 3/4 of the country.
In the future, during the 14th Five-Year Plan period, environmental protection policies will inevitably promote the further development of the non-electricity industry flue gas treatment market. China's air treatment market from the power industry gradually matured to the depth of non-electric industry treatment, non-electric industry will become the next stage of winning the "blue sky war" key. Thus, it can be seen that the flue gas treatment in non-electricity industry contains huge market opportunities, which is a great motivation for the future growth of Yuanchen Technology.
As a national high-tech enterprise, Yuanchen Technology has taken the path of combining "industry, academia and research", continuously digesting and absorbing advanced technologies at home and abroad, possessing independent intellectual property rights, forming continuous innovation capability, and exploring future cooperation space with end-users in the fields of contract energy management, online carbon emission monitoring and energy auditing. Thus, we have established a dominant position in the field of collaborative governance of pollution reduction and carbon reduction.
The Central Economic Work Conference in 2020 clearly identified the work of achieving peak carbon and carbon neutrality as one of the eight key tasks, fully reflecting the high importance the Party Central Committee attaches to doing this work well. Achieving the medium and long-term goals of carbon peaking and carbon neutrality is not only the responsibility of China to actively respond to climate change and promote the building of a community of human destiny, but also the inevitable requirement of China to implement the new development concept and promote high-quality development. In the future, Yuanchen Technology, as a pioneer in the field of pollution reduction and carbon synergy management, will also leverage the capital market to truly become the guardian of the world's environmental friendliness and human health.
