This report comes from the Economic Observer: On March 31, the new stock of Science and Technology Board, Anhui Yuanchen Environmental Protection Technology Co., Ltd. (688659.SH) was officially listed for trading, and the share price of this high-tech enterprise focusing on new materials for energy conservation and environmental protection increased by 223.08% at the opening.
The main products of Yuanchen Technology are various types of high-efficiency and low-resistance energy-saving filter bags and SCR denitrification catalysts, which are the core materials in the industrial flue gas treatment process. In recent years, the national environmental protection and emission reduction policy continues to increase the background, the relevant products of Yuanchen Technology backed by the core technology advantage is outstanding, helping the company's performance to achieve sustained and rapid growth.
On February 22, 2021, the State Council issued the "Guidance on Accelerating the Establishment of Green Low-Carbon Circular Development Economic System", which supports the development of green low-carbon circular economy, carbon neutrality, pollution prevention and other demand is expected to continue to open. In terms of specific industries, in recent years, with the power industry flue gas treatment into the end, iron and steel industry ultra-low emission transformation officially launched, industrial flue gas treatment is gradually to glass, cement, ceramics, brick and tile and other non-electric industries with more pollutant emissions penetration, the improvement of standards related to domestic waste incineration, also gave rise to the further release of related environmental protection emission reduction demand.
In this context, Yuanchen Technology will further expand its advantageous production capacity to meet various environmental protection and emission reduction demands with its advantageous products. At the same time, Yuanchen Technology will also vigorously expand environmental testing, monitoring services, hazardous waste recycling services and other extended services to make the industrial chain longer and wider, so as to bring into play the business synergy and comprehensive advantages.
Filter bags and denitrification products to meet the demand of environmental protection treatment Asset structure continues to be optimized
Relying on the cutting-edge technology in the field of industrial dust removal and denitrification, the company's main products are various types of high-efficiency and low-resistance energy-saving filter bags and SCR denitrification catalysts, which are mainly used in industries and fields such as electric power, steel and coking, waste incineration, cement and glass, etc. The sales of the products cover 30 provinces, cities and autonomous regions in China.
Among the company's main products, filter bags are used in industrial flue gas dedusting, and Yuanchen Technology is also the head enterprise of this type of products. Its working principle is that when the dust-containing gas passes through the filter bag, it relies on the filter bag as the filter medium to trap the dust through sieving, inertia, adhesion, diffusion and electrostatic effects, etc. The dust is stopped on the surface of the filter bag, and the clean gas is discharged through the gaps between the filter bag fibers, so as to achieve the purpose of separating the dust from the dust-containing gas.
At present, Yuanchen Technology's filter bag products have been successfully applied to 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; China Industrial Textile Industry Association issued a certificate that Yuanchen Technology ranked top five in the domestic high temperature filtration material industry from 2017 to 2019.
Another major product of Yuanchen Technology is SCR denitrification catalyst, which is used in industrial flue gas denitrification. SCR denitrification technology is currently the most widely used technology in China, working on the principle of selective reduction of reductant ammonia and nitrogen oxides to produce nitrogen and water under the action of denitrification catalyst, which plays the role of purifying flue gas and reducing nitrogen oxide emissions.
In recent years, the company's denitrification catalyst sales business accounted for a rising trend year by year, and the company's denitrification catalyst sales revenue accounted for 23.78%, 39.28% and 53.30% of the main business revenue from 2017 to 2019, respectively.
Behind the two major products is the outstanding advantage of Yuanchen Technology in the field of core technology and R&D. Since its establishment, the company has taken the road of independent scientific and technological innovation, and after years of continuous accumulation, summary and improvement, it has formed a strong technical advantage in the field of filtration materials and flue gas purification series environmental protection products.
At present, Yuanchen Technology has the domestic leading technologies such as asymmetric gradient technology of ultra-clean electric bag, PTFE composite emulsion permeable membrane technology, NOx-dioxin synergistic removal technology and high-efficiency SCR denitrification technology for power plants. As a national high-tech enterprise and provincial innovative pilot enterprise, Yuanchen Technology has provincial enterprise technology center, provincial engineering technology research center and post-doctoral research workstation, and currently has an advanced and functional laboratory with CNAS and CMA qualification.
With the technical advantages and competitiveness of the two major products, Yuanchen Technology's revenue from 2017-2019 is 267 million yuan, 324 million yuan and 363 million yuan, and the net profit attributable to the mother is 35.9 million yuan, 37.86 million yuan and 59.11 million yuan respectively; from 2017-2019, the company's operating income has a compound annual growth rate of 16.65%, and the comprehensive gross profit margin Stable 35% or more, excellent performance and growing profitability. 2020 year, Yuanchen Technology took the initiative to assume social responsibility in the process of fighting the new crown epidemic, increasing the production and sales of protective products such as masks and meltblown cloth, and achieved an annual operating income of 458 million yuan, an increase of 26.21% year-on-year.
It is worth noting that the environmental protection industry often has a long accounting period because of the long acceptance and settlement cycle, which to a certain extent affects the profitability and asset quality of environmental protection enterprises. since 2018, the total accounts receivable of Yuanchen Technology has been on a downward trend, and the company's cash flow has rapidly returned to positive, from -32.89 million yuan in 2017 to 107 million yuan in 2019, showing that the company's main business operation The situation continues to improve and the asset and liability structure continues to be optimized.
Policy driven to open incremental market and actively expand extended services
Yuanchen Technology is located in the core materials production and research and development in environmental management, after years of development market position has steadily improved, and with the country's further attention to environmental protection and energy conservation and emission reduction, the tightening of environmental protection policies, related industries will undoubtedly usher in new growth space.
Industrial flue gas treatment industry is an important part of the national environmental protection cause, mainly for the industrial flue gas of sulfur dioxide, nitrogen oxides, smoke (dust) and other air pollutants to remove treatment. since 2016, China began a strict environmental protection inspection system to the central environmental protection inspectors as a means to promote the local creation of a series of long-term mechanisms for ecological environmental protection, in order to effectively solve the pollution problem, and to put an end to pollution problems from rebounding.
A related research report by Anxin Securities further points out that in recent years, with the power industry flue gas treatment into the end, the iron and steel industry ultra-low emission transformation officially launched, the continued progress in the level of technology will promote industrial flue gas treatment to glass, cement, ceramics, brick and tile and other non-electric industries with more pollutant emissions penetration. In addition, the increase of domestic waste incineration disposal has also become a new growth point for flue gas treatment.
In the above background, the two core products of Yuanchen Technology will usher in a broader market opportunity. Take cement industry as an example, the dust removal methods adopted by relevant enterprises are mainly electric dust removal and bag type dust removal. Due to the large amount of dust in cement industry, the dust removal efficiency of electric dust removal is greatly affected by the performance of equipment, enterprise management level, production line working conditions and other factors, and the dust removal efficiency varies, only a few cement enterprises in China can achieve the national emission standard with electric dust removal. Because of this, there are relatively fewer constraints and higher dust removal efficiency of the bag type dust removal has become the first choice for more cement enterprises to reduce dust emissions.
Garbage incineration industry also has a huge demand, "Thirteen Five" national urban household garbage harmless treatment facilities construction planning" proposed that by the end of 2020, the national urban household garbage incineration capacity of 591,400 tons / day, incineration accounted for 54%. According to the relevant national domestic waste incineration standards, domestic waste incinerator emissions in the flue gas of particulate matter, nitrogen oxides (NOX), dioxin class determination of the average value requirements have been increased. Waste incineration flue gas treatment is difficult and complex, but even so, in the face of strict emission targets, waste incineration power generation initiative to increase the flue gas treatment equipment to meet the emission limits, the future of ultra-low emission transformation market space is also very huge.
Based on the main products, Yuanchen Technology will further expand environmental monitoring services and hazardous waste recycling to make the industrial chain longer and wider in accordance with the national environmental protection and emission reduction policy and market demand.
Relevant subsidiaries of Yuanchen Technology will carry out emission testing and analysis of industrial air pollutants including dust, nitrogen oxides, sulfur oxides, dioxins and other pollutants; testing and evaluation analysis of used catalysts and used filter bags; analysis and testing of flue gas denitrification catalysts and filter materials, research and development, transformation of results; analysis and testing of relevant materials for catalyst industry and dust removal filter industry; analysis and testing of polymer materials, ceramic materials, etc.; analysis and testing of water and wastewater, air and Testing; analysis and testing of water and wastewater, air and waste gas, soil and other chemical substances.
In the field of hazardous waste recycling, relevant subsidiaries of Yuanchen Technology will uphold the concept of data-driven and technological innovation, and provide intelligent service solutions through intelligent and information technology to realize the process tracking of the whole life cycle of hazardous waste: including online monitoring, positioning and tracing, alarm linkage, and command and dispatch. Improve the enterprise's information management of hazardous waste and reduce the risk in the process of hazardous waste management.
Expanding advantageous production capacity to seize the high point of the industry
The successful landing on the Science and Technology Venture Board has given Yuanchen Technology a new development boost, and the relevant investment projects will also help the company further enhance its main business and expand its advantageous fields.
According to the prospectus disclosure, Yuanchen Technology's fund-raising investment will be used for the construction of an annual output of 4.6 million square meters of high-performance dust filter media industrialization project, as well as to supplement working capital. Yuanchen Technology has been cultivating the market of filter bag products for many years, and has a certain brand awareness in the industry. At present, due to factors such as lack of production capacity, resulting in the company's low share of the non-electric industry. As mentioned above, with the further increase of flue gas treatment requirements in non-electric industry, the company needs to improve its production capacity to meet the market demand.
The project will be industrialized and upgraded by introducing advanced production equipment from home and abroad and building 3 fully automatic production lines. The implementation of the industrialization project will, on the one hand, increase production capacity through automated production, bring into play the advantages of scale, improve production efficiency, improve product quality, meet the increasing customer demand and consolidate the company's industry position; on the other hand, the company will further enrich the product categories on the basis of existing products, optimize the company's product structure and enhance the profitability and overall competitive strength of the enterprise.
Industry analysis, with the increasingly stringent national air emission standards, many enterprises face the threat of production reduction and closure, from the "12th Five-Year Plan" during the intensive introduction of air management policies and standards to a new round of upgrading, "ultra-low emission" has been from the initial The power industry has been extended to all polluting industries, and among the many dust removal equipment, only high efficiency and low resistance bag filter can meet the strict emission requirements. Among them, filter bag as the core component of bag filter, the cost of filter media in bag filter accounts for about 30%, and the replacement of filter bag accounts for 20% of the annual operating cost of dust collector, in the next few years, the demand of dust filter bag is bound to accompany the industrial bag filter renovation market showing a blowout.
For the strategic planning of the company's development, Yuanchen Technology proposes that the company will be based on the national strategy, establish the global professional brand of "Yuanchen Technology", abide by the business philosophy of "full quality, full marketing, full accounting, full service", and take "We insist on "scientific and technological innovation, product innovation and concept innovation", actively participate in the global market competition, seize the high point of new products, technologies and materials for energy-saving and environmental protection at home and abroad, and become the innovator and promoter of filtration materials and flue gas purification. We will become the innovator, promoter, integrator and leader in the field of filtration materials and flue gas purification.
