Company business profile The company focuses on the production and sale of carbon black, and the sales revenue of carbon black accounts for more than 97% of total operating income. The main products are carbon black, including N100, N200, N300, N500, N600, and N700. Currently, seven wet granulated carbon black production capacity is 180,000 tons/year. The carbon black monomer plant has the highest production capacity in the world, and the production capacity of a single production line is the highest in the country. The economic scale of the supporting exhaust gas power generation unit currently has an installed capacity of 21MW. In 2009, the domestic market share of carbon black was 9.02%, ranking third in China. Industry concentration has steadily increased. At the end of 2007, the total production capacity of China's carbon black industry was 3.1 million tons. The sum of the production capacity of the top 8 carbon black companies accounted for about 35% of the total production capacity; the sum of the production capacity of the top 3 carbon black enterprises accounted for about 21% of the total production capacity. According to statistics from the Carbon Black Branch of the China Rubber Industry Association, from 2004 to 2006, the production capacity of carbon black enterprises below 30,000 tons/year had dropped from 36% to 24%, while the share of carbon black enterprises over 80,000 tons/year of production capacity had risen from 28% to 50%. Judging from the characteristics of the development of China's carbon black industry, through structural adjustments within the industry, the concentration of production capacity in the carbon black industry will increase. The technical advantages are obvious. The company uses large-scale new process reactors. The 40,000 tons/year carbon black production line, which was put into operation in October 2007, is currently the largest hard carbon black production line in China, and the production capacity of a single furnace can reach 120 tons/day. The production unit is equipped with an online high temperature air preheater of 850 ℃ to 900 ℃ and a raw oil preheater of 260 ℃ to 280 ℃, which have the advantages of energy saving and consumption reduction; the company uses self-designed carbon black reactors to achieve high production, high quality and low consumption of products. The company has the lowest energy consumption per unit of carbon black, which is 2.005 tons of standard coal/ton of carbon black, while the domestic advanced level is currently 2.15 tons of standard coal/ton of carbon black. According to our estimates, the company's EPS for 10-12 years is 0.57 yuan, 0.69 yuan, and 0.72 yuan, respectively.