The Zhitong Finance App learned that on June 29, Zanyu Technology (002637.SZ) said in a conference call with investors that the company built a high-standard industrial base with a high starting point, moderately extended the industrial chain, and expanded the liquid washing OEM business; the company has built sulfonation plants in Jiaxing, Meishan, Shaoguan, Hebi and other places, with an annual production capacity of more than 1.1 million tons. The company's current OEM projects are mainly connected to customers. Includes Unilever, White Cat, Procter & Gamble, Blue Moon and other manufacturers.
Moderately extend the industrial chain to expand the liquid washing OEM business
Ren Guoxiao, Deputy General Manager and Director of Zanyu Technology, explained that the company's main business is R&D, production and sales of surfactants and oleochemicals. Surfactants are mainly used in detergent, cosmetics, food processing, textile printing and dyeing industries. Most of the products produced in these industries have gradually become essential in people's lives; the main products of oil chemicals are mainly fatty acids and fatty alcohols, and the downstream demand for stearic acid is mainly in rubber, plastics and other industries; industrial oleic acid can be used in plastics, washing, mineral processing, paint and other industries. Downstream products such as dimeric acid, polyamide resin and other products have high profitability and market space.
The company is making full use of the advantages of leading enterprises in the field of surfactants and oleochemicals, strengthening and optimizing the domestic industrial layout, building a new industrial base with a high starting point and a high level, moderately extending the industrial chain, expanding the liquid washing OEM business, and effectively consolidating the market and industry position.
Surface activity has an annual production capacity of more than 1.1 million tons of oil chemicals with an annual production capacity of more than 900,000 tons
Investors asked about the company's surface activity and oleochemical production capacity. Zanyu Technology answered that the company has sulfonation plants in Jiaxing, Meishan, Shaoguan, Hebi and other places, with an annual production capacity of more than 1.1 million tons. The company has oil chemical production facilities in Hangzhou, Jiangsu, Hubei, and Jakarta, Indonesia, with an annual production capacity of more than 900,000 tons.
The surfactants produced by the company are mainly made from natural oils and fats as raw materials, and are natural oil-based surfactants represented by AES, AS, 6501, MES, etc. As the supplier of natural oil-based surfactants with the largest domestic industry and the strongest comprehensive competitiveness, the company's domestic market share has reached more than 30%. It has supplied green, safe and high-quality surfactant products to well-known domestic chemical companies for a long time, in line with the national industrial policy and development direction. Furthermore, the company began laying out high-end green surface active products as early as 2009, making it the first enterprise in China to produce MES on a large scale. The company has also laid out large-scale production projects for novel green surfactants such as alkyl glycosides (APG), amino acids, betaine, etc., to continuously promote the adjustment of the company's product structure and product quality improvement.
The impact of fluctuations in commodity raw material prices on the company's gross profit level of sales is gradually decreasing
Regarding the impact of the reduction in palm oil prices on the company's profits, Zanyu Technology said that the company's leading position and scale advantage in the domestic chemical and oil chemical segments is obvious. The industrial layout in the domestic petrochemical and petrochemical fields is improving. It has maintained strategic cooperative relationships with upstream raw material suppliers and downstream customers for many years, and has good advantages in material procurement costs and logistics and transportation costs. As the company's production and sales scale further increased, its ability to transmit prices downstream increased, and its voice in the industry further increased, the impact of fluctuations in the price of bulk raw materials on the company's gross profit level of sales gradually decreased.
Furthermore, from August 1, 2022, Indonesia implemented a new policy. The total tax and levy on crude palm oil was raised from 488 US dollars/ton to 528 US dollars/ton. Dukuda has a stronger cost advantage in purchasing palm oil locally.
The customers currently connected to the OEM project are mainly large customers including Unilever, White Cat, Procter & Gamble, Blue Moon, etc.
In terms of production capacity planning for the OEM business, Zanyu Technology said that the company currently has planned downstream processing and production projects for daily care products in Zhenjiang, Jiangsu, Hebi, Henan, Meishan, Sichuan, and Cangzhou, Hebei. The “100,000 tons/year liquid detergent project” in Zhenjiang, Jiangsu has now been successfully put into production. The 500,000 ton sanitary products production plant for the “Zanyu Science and Technology Central Plains Daily Chemical Ecological Industrial Park Project” in Hebi, Henan is currently progressing steadily. Projects in Meishan in Sichuan and Cangzhou in Hebei are also being actively promoted.
The company's OEM project currently has major customers, including Unilever, White Cat, Procter & Gamble, and Blue Moon. Downstream customers in the industry have insufficient regional production capacity allocation in the development process, and there is an urgent need for large-scale specialized OEM foundries with stable supply.
Regarding the progress of the company's Hangzhou petrochemical 100,000 ton ester project, Zanyu Technology revealed that currently the oleic acid and monoglyceride projects in the 100,000 ton project have already been produced, and OPO structural esters are still in the trial production process. The domestic market demand for OPO is about 50,000 tons. OPO is a nutritional enhancer that can optimize calcium absorption, enhance bone development, promote the growth of lactobacilli and bifidobacteria, inhibit the growth of clostridium and staphylococci, and can be added to milk powder. After OPO prototypes the product, it is also necessary to go through steps such as review and approval, product verification, and factory assessment. The company is currently actively promoting product market development.
The food additive currently produced by Hangzhou Grease Technology is glyceryl monostearate, which is mainly used as an emulsifier in foods such as beverages. Additionally, OPO is being tested as an additive to infant formula.