Yan Liang, General Manager of Yuanchen Technology
This report is from Shanghai Securities News: As a "newborn" to be listed on the Science and Technology Venture Exchange Board, Yuanchen Technology is a leading technology-based enterprise in the domestic flue gas purification new material industry. Talking about the future, Liang Yan, the general manager of the company, told Shanghai Securities News with confidence: "We will adhere to the core of independent innovation, continue to focus on the core technology research and development of our main business, and focus on the industrialization of forward-looking technology conversion with the help of the Science and Technology Innovation Board, and in the future, the company will continue to maintain its position as a leader in the new materials industry of atmospheric environmental protection, continue to innovate technology and business results, and strive to become a leader in the downstream enterprises to achieve carbon neutral and carbon compliance. We will strive to become a helper for downstream enterprises to achieve carbon neutrality and carbon compliance."
Up to now, the company's high-efficiency and low-resistance dust removal filter bags have been successfully applied to many domestic power companies with installed capacity of 1000MW and above units, achieving ultra-clean emissions in the field of bag-type dust removal while saving energy and increasing efficiency for end customers; ranking top five in the domestic high-temperature filtration materials industry and first in Anhui Province from 2017 to 2019. By continuously conquering low-temperature denitrification technology problems, the company's denitrification catalyst products have been successfully applied to coking low-temperature denitrification and sintering medium and low-temperature denitrification to achieve ultra-low emissions from SCR denitrification systems, and provide recycling services for owners of used catalysts.
Mastering the core technology of new filtration materials
In the process of collaborative treatment of pollution reduction and carbon reduction, the use of new materials such as high efficiency and low resistance filter bags and ultra-low temperature catalysts is very critical. And bag filter technology is one of the main filter technologies currently applied in China.
"Undoubtedly, energy saving and emission reduction is an important means to achieve carbon neutrality in the energy industry." Liang Yan said, the national air emission standards are increasingly strict, from the "Thirteenth Five-Year Plan" during the intensive introduction of air governance policies and standards, to last year began a new round of upgrading, "ultra-low emission" has been from the initial power industry to cover all industrial sectors, and in Among the many dust removal equipment, only high-efficiency bag filter can meet the strict emission requirements. Among them, the filter bag as the core components of the bag filter, replacement of the filter bag accounted for 20% of the annual operating costs of dust collectors. In the next few years, the demand for dust filter bags is bound to expand along with the development of the industrial bag-type dust collector renovation market.
"Filter bag products are the foundation of the company, after years of accumulation, we have a high level of technical innovation in product development and production. In terms of market, Yuanchen has a good market foundation and maintains a good relationship with major customers. Our products are mainly used in industries and fields such as power, steel and coking, waste incineration, cement and glass, etc. Our main customers include industry leaders such as State Power Investment Group, CLP Guorui, Longjing Environmental Protection, Qingxin Environment, Everbright Environment, Sanfeng Environment, Shougang Jingtang, Anfeng Steel, China Resources Cement and Xinyi Glass."
According to the China Environmental Protection Industry Association Bag Dust Committee forecast, the power industry bag dust filter media market size will maintain a compound annual growth rate of about 4% from 2020 to 2022, reaching 2.4 billion yuan, 2.5 billion yuan and 2.6 billion yuan, respectively.
From 2017 to 2019, the market share of Yuanchen Technology's filter bag products is 2.9%, 2.4% and 2.1%, respectively, with a slight downward trend, mainly because the market share of the company's filter bag products in the power industry has been declining year by year, at 8.5%, 6.4% and 4.3%, respectively.
"The decline in the market share of filter bag products in the power industry is due to working capital constraints, the company gives priority to projects with shorter payback periods and relatively higher prices for cooperation when bidding, and reduces participation in projects with longer payback periods and relatively lower prices, resulting in a decline in revenue from filter bag products in the power industry." Liang Yan said that with the strengthening of financial strength, the company will continue to improve the market share of filter bag products by increasing investment in the research and development of power industry filter bag products, process improvement, research and development of more products with good stability, high applicability and superior performance, and continuously improve production efficiency, reduce production costs, improve the core competitiveness of the product.
Provide personalized solutions for customers
"Innovation and R&D are our most important core competencies. We have provincial enterprise technology center, engineering technology research center and post-doctoral research station, and have been taking the road of 'industry-university-research' combination, constantly digesting and absorbing advanced technology at home and abroad, owning independent intellectual property rights and forming continuous innovation ability, thus laying a dominant position in the flue gas purification industry. " Liang Yan said.
It is understood that the company has built a laboratory with advanced equipment and perfect function, with CNAS and CMA qualification. The company has 77 authorized patents, of which 24 are invention patents and 53 are utility model patents. The company focuses on technology research and development in the field of filtration materials and denitrification catalyst materials, and the key core technologies have reached the domestic leading position. 2017 to 2019, the company keeps expanding the scale of R&D investment, which reached 13.629.3 million yuan, 16.581.3 million yuan and 19.246.4 million yuan respectively, accounting for 5.11%, 5.12% and 5.30% of the operating revenue in the same period.
"For example, our self-developed 'super-clean electric bag asymmetric gradient' technology, which undertook the innovation fund project of the State Ministry of Science and Technology, won the Science and Technology Progress Award of Anhui Province. The company used the technology to develop a new type of high-efficiency ultra-low emission filtration material products for coal-fired power plants, which won the high-tech products of Anhui Province and passed the evaluation of scientific and technological achievements of China High-tech Industrialization Research Association, with leading technology level in China, and the products have been successfully applied in domestic coal-fired power units above 1000MW, 600MW, etc. to achieve ultra-clean emission. "Liang Yan said.
In addition, the company also has service and product advantages. The service network is all over the country. In the process of the company's service innovation, customer satisfaction has been continuously climbed and the company's brand is recognized by customers. Through rapid response, training and institutionalized customer return strategy, combined with the "anytime, anywhere" and "wholehearted" service tenet, the company provides continuous and effective service to customers before, during and after the sale, and personalized solutions for customer needs. We provide continuous and effective services to our customers before, during and after sales, and personalized solutions for their needs.
Standing on a bigger platform to accept more challenges
According to Liang Yan, landing on the STB is a brand new starting point for the company's development. After becoming a public company, the company's operation in the public market will be more standardized. At the same time, the external environment of the company will be improved, and the overall visibility of the company and its influence among customers will continue to increase. Relying on the power of the capital market, the company will further grow bigger and stronger. The company will also stand on a bigger platform to accept more challenges in the future.
According to Liang Yan, the company's public offering of shares and listed funds to be invested in the project mainly corresponds to the development and production of filter bag products in the non-electric industry, the implementation of the project can significantly increase the production capacity of filter bag products in the non-electric industry, is expected to significantly increase the market share.
Liang Yan told reporters that the implementation of the industrialization project, on the one hand, through automated production to increase production capacity, play the scale advantage, improve production efficiency, improve product quality, to meet the increasing customer demand, 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, enhance the profitability of enterprises and overall competitive strength.
"In the future, we will highlight the goal of 'pollution reduction and carbon reduction', take the market as the guide, shift from industrial flue gas end treatment to the whole process of energy saving and emission reduction treatment, and lead the development of the company through technological progress and R&D innovation. Taking this issue as an opportunity, through the implementation of the industrialization project of high performance dust removal filter media and replenishment of working capital, we will realize the enhancement of the added value of our existing products and industrialization of our core services, further improve our core competitiveness, and build Yuanchen Technology into a flagship brand in the field of new materials for energy conservation and environmental protection in China." Liang Yan said.
