This report is from QQ.com.
Company Profile.
I. Main business and products
(I) The company's main business and main products
1、Main business
The company is mainly engaged in the research and development, production, sales and service of filtration materials and flue gas purification series of environmental protection products. The report of the 19th National Congress proposes to adhere to the common treatment of all people, source prevention and control, continue to implement air pollution prevention and control actions, and win the blue sky defense war.
The company serves the national ecological environment sustainable development strategy, and has long been committed to the research and development and production of products in the field of flue gas treatment, relying on the core technology to achieve rapid development. The company's products are mainly used in industries and fields such as power, steel and coking, waste incineration, cement and glass, etc. The company's main customers are Longjing Environmental Protection, State Power Investment Group, Zhongdian Guorui, Qingjing Environment, Shougang Jingtang, Anfeng Steel, China Resources Cement and Xinyi Glass, etc.
As of the date of this prospectus, the company has 24 invention patents, 53 utility model patents and 21 software copyrights. The company has undertaken and completed 4 national projects. 12 products have been recognized as new products in Anhui Province, and 3 products or technologies have been awarded the Science and Technology Progress Award of Anhui Province.
2、Main products
The main products of the company are various kinds of high temperature and corrosion resistant 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.
(1) Filter bags
The company's filter bag products are used in industrial flue gas dust removal, bag type dust removal technology is currently one of the main dust removal technologies used in China, the principle of operation is that when the dusty gas passes through the filter bag, relying on the filter bag as a filter medium, through sieving, inertia, adhesion, diffusion and electrostatic effects on dust capture, dust is blocked on the surface of the filter bag, clean gas is discharged through the gaps between the filter bag fibers, so as to achieve the separation of
(2) SCR denitrification catalyst
SCR denitrification catalysts are used in industrial flue gas denitrification. SCR denitrification technology is the most widely used technology in China, which works by selectively reducing ammonia and nitrogen oxides to produce nitrogen gas and water under the action of denitrification catalysts to purify flue gas and reduce nitrogen oxide emissions. The power industry is the first to require NOx treatment, and in the process of treatment, it is gradually found that the wear life of the catalyst and the low load conditions have become a problem. The company has been paying attention to technology research and development, and has successfully solved these problems with its core technologies such as high-efficiency SCR denitrification technology for power plants, rare earth modified alkali-resistant SCR denitrification technology, medium and low temperature SCR denitrification technology, and NOx-dioxin co-removal technology, which have been successfully applied.
(3) Protective Goods
When the New Crown epidemic occurred, the demand for protective products such as masks increased sharply, and there was a huge shortage of filtration materials such as upstream meltblown fabric in particular. The Company started the research, development and manufacture of PTFE laminate materials from 2013 by utilizing its technical reserve and rich application experience in the filtration materials industry, and developed efficient and low resistance nano-level PTFE laminate materials that can replace meltblown cloth for masks in an efficient and timely manner based on the existing technology.
In this regard, the company held the first extraordinary shareholders' meeting in 2020 on February 25, 2020, considered and passed the "proposal on increasing the scope of business", the new business scope "medical sanitary materials and auxiliary materials (medical masks, protective clothing, surgical wipes, band-aids, etc.), civilian masks, labor protection protective products, daily chemical products, sanitary products research and development, production and sales. The company is also a member of the "Medical Mask and Accessories Taking advantage of its own production technology in filtration materials, the company quickly organized product development, equipment acquisition, renovation, installation and commissioning during the epidemic to form a mass production line of "meltblown fabric production line + nano-grade PTFE laminated material production line + mask/protective clothing production line". In March 2020, the mass production of meltblown fabric and nano-grade PTFE coating material has been achieved, and the market supply has been stepped up. As of June 30, 2020, the sales revenue of protective products of the Company was RMB77,405,000, including meltblown fabric of RMB29,760,000, nano-grade PTFE laminated material of RMB15,851,600,000 and masks and other protective products of RMB31,843,000.
3. Major components of main business income
During each period of the reporting period, the company's sales revenue of filter bag products for the power industry and non-power industry are as follows.
During the reporting period, the sales revenue of the Company's denitrification catalyst products for the power industry and non-power industry were as follows.
II. Industry and competition
Since its establishment, the Company and its predecessor have been focusing on the R&D, production, sales and service of filtration materials and flue gas purification series environmental protection products.
Our main products are various kinds of high temperature and corrosion resistant filter bags and SCR denitrification catalysts, which are mainly used in industries and fields such as power, steel and coking, waste incineration, cement and glass. The company is the executive director of China Industrial Textile Association. The company is one of the enterprises that collect filter media, filter bags, denitrification catalysts, denitrification catalysts recycling and regeneration. The company has a hazardous waste management license (HW50 category).
The company has won wide recognition from customers and peers for the effectiveness of its business management over the years. Up to now, the Company's filter bag products have been successfully applied to many domestic power companies with installed capacity of 1000MW and above, realizing ultra-clean emission in the field of electric bag or bag type dust removal; China Industrial Textile Association has issued a certificate, ranking top five in the domestic high-temperature filtration material industry in 2017-2019, and ranking first in Anhui Province.
The company continues to overcome low-temperature denitrification technology problems, and denitrification catalyst products have been successfully applied to coking low-temperature denitrification and sintering medium and low-temperature denitrification to achieve ultra-low emission of SCR denitrification system; the company's denitrification catalyst products have won wide recognition from customers, downstream customers include Longjing Environmental Protection, State Power Investment Group, Zhongdian Guorui, Qingxin Environment, Anfeng Steel and Xinyi Glass and other well-known enterprises. After years of development, the company's market position has been steadily improved.
As national standards for flue gas dust emissions become increasingly stringent, dust filter materials must meet ultra-low emission requirements, while also meeting the requirements of stable operation and good service life. Along with the development of electric power and non-electric fields, the main dust removal methods are electric dust removal, cloth bag dust removal, wet dust removal and electric bag dust removal. Due to the product innovation in the field of filter media in China, PTFE-based composite filter media and fiber, customized fiber selection and proportioning solutions, post-treatment technologies to improve durability, etc., coupled with the improvement in bag de-dusting management and application level of the site owner, the performance testing and quality control of the filter bag, making the use of the filter bag in the field gradually extended.
The main enterprises in the industry
1. Filter bag
2. Denitrification catalyst
III. Outstanding risks
1. The risk that the performance of the filter bag and catalyst business declines significantly in the first half of 2020, and the risk that the net profit may decline in the whole year of 2020
2、Risk of declining revenue from the power industry and ineffective market development in non-power industry
3、Risk of overdue accounts receivable
IV. Investment projects and targets
Based on the national strategy, the company establishes the global professional brand of "Yuanchen Technology", abides by the business philosophy of "full quality, full marketing, full accounting and full service", and takes "contributing to the world's environmental friendliness and human health" as its mission. With the mission of "contributing to the world's environmental friendliness and human health", 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, new technologies and new materials for energy saving and environmental protection both at home and abroad, and become the innovator, promoter, integrator and leader in the field of filtration materials and flue gas purification.
The company is market-oriented, customer-oriented, focused on improving business performance and economic efficiency, leading the development of the company with R&D innovation, lean management, supported by departments and positions, and integrating the knowledge, skills and related resources of the enterprise through technological progress. Through the implementation of the industrialization project of high performance dust filter media and the replenishment of working capital, we will improve the added value of our existing products and industrialize new products, and further improve our economic efficiency and core competitiveness.
V. Financial information
Operating income for FY2020 was RMB458,392,600, an increase of 26.21% compared with the same period of the previous year, which was mainly due to the increase in sales revenue of protective products such as masks and meltblown cloths due to the impact of the New Crown epidemic; net profit was RMB62,285,500, an increase of 5.37% compared with the same period of the previous year; net profit attributable to owners of the parent company after deducting non-recurring gains and losses was RMB49,529,800, a decrease of 5.59% compared with the same period of the previous year. The net profit attributable to owners of the parent company after deducting non-recurring gains and losses was RMB49,529,800, a decrease of 5.59% compared with the same period of last year.
From January to March 2020, the company's operating income was lower due to the impact of the new crown epidemic. Based on the current operating situation and market environment, the Company expects that the operating revenue from January to March 2021 will be in the range of RMB77 million to RMB80 million, representing a year-on-year growth of 141.21% to 152.68%; the net profit attributable to the parent company is expected to be in the range of RMB804.82 to 879.42 million, and the net profit attributable to the shareholders of the parent company after deducting non-recurring gains and losses is expected to be in the range of RMB804.82 to 879.42 million. The net profit attributable to shareholders of the parent company is expected to range from RMB628.02 to RMB700.92 million.
VI. Risk-free focus conclusion: the company's main products for all kinds of high temperature and corrosion-resistant filter bags (42.53%) and SCR denitrification catalyst (53.30%), mainly used in power, steel and coking, waste incineration, cement and glass and other industries and fields, in last year's masks and meltblown cloth over the great situation, the company's main epidemic protection products accounting for 43% of revenue, the annual profit actually did not have any Growth, indeed incredible, it is too difficult to do it! The highlight is the low price and low market value of the issue, giving billion 25 or so market value, no wind is not recommended to pay attention to.
