The company is a leading polystyrene enterprise in South China. The company's main products are general grade polystyrene (GPPS) and high impact polystyrene (HIPS). Among them, special materials can also be divided into light guide plate series, diffuser plate series, and special material series for transparent refrigerator interior parts according to specific uses. The company's products are mainly used in household appliances, building decoration, daily necessities, stationery, toys, food packaging, optical displays, refrigerator special materials and other fields. In 2022, the company achieved revenue of 2,441 billion yuan, +43.81% year-on-year; in 2022, the company achieved net profit of 94 million yuan, -29.85% year-on-year.
The company's products have a wide range of applications. The company's product is polystyrene, which is mainly used in optical displays, household appliances, daily necessities, packaging and other fields. Specifically: 1) GPPS products can be divided into: ① the field of optical display, which is mainly used to produce the diffusion boards required for backlight modules in liquid crystal display products, specifically 535TV and 535KWL; ② the field of optical lighting, mainly used to produce light guide plates and diffuser plates required for lighting modules in LED lighting products, specifically including the three grades of 535HN, 535T, and 535TK; ③ The field of transparent refrigerator interior parts, which refers to the production of transparent refrigerator (including freezers) components such as drawers, partitions, and other transparent interior parts. 535HN improved grade; ④ Other general fields, specifically including Japanese plastic products, plastic packaging products, plastic toys, and XPS insulation boards, etc. The demand in this field is mainly for ordinary materials, specifically 525B and 535N. 2) The company's HIPS products are currently mainly used in the production of small household appliance cases, office appliance cases, toys and injection molded products.
Jiangsu Zhuowei Chemical was established to open up the East China market. The purpose of the company's establishment of the subsidiary Zhuowei Chemical is to: 1) steadily carry out styrene trade to supplement when the parent company lacks raw materials in the production process; 2) Open up the East China market and do some basic work and paving the way for the company to enter the East China market. Currently, there have been positive developments, such as customers such as Suzhou Sanxin.
The company continues to invest in research and development to improve process standards. (1) In terms of product formulation research and development, the company's product formulation research and development is demand-oriented, and R&D investment continues. The main core personnel have many years of experience and can respond quickly to downstream needs, forming 23 equipment process technology patents, 9 proprietary technologies, 8 core product formulations (2 of which have obtained invention patents), and 6 brands have been rated as high-tech products in Guangdong Province; (2) In terms of process, the company's product process is unique. The company's first batch of GPPS production in China uses the “1+4" reactor configuration model, while HIPS production is A pre-polymerizer was added to the front end of the GPPS production unit. Through the “2+4" reactor configuration mode, the residence time of the polymerization reaction was increased, thereby improving the overall conversion rate of the material, making the molecular weight distribution in line with expectations, and improving product stability.
Fundraising projects lay the foundation for the company's growth. As of August 25, 2023, the company's total annual production capacity has exceeded 300,000 tons. It is estimated that the company's total registered production capacity will exceed 480,000 tons around the 2025 Spring Festival. After considering the operational flexibility of the equipment, the company will have a maximum annual production capacity of 560,000 tons. The company's IPO raised 629 million yuan for the following projects: 1) New polystyrene material expansion project with an annual output of 180,000 tons: The annual production capacity is 180,000 tons of polystyrene, including 90,000 tons of GPPS and 90,000 tons of HIPS, of which the HIPS production line can be converted to GPPS. The total investment of the project is 264 million yuan. The project has been completed and put into operation and is in the final stage of completion. 2) Huizhou Renxin New Materials Phase III Project: The annual production capacity is 180,000 tons of polystyrene, including 90,000 tons of GPPS and 90,000 tons of HIPS, of which the HIPS production line can be converted to GPPS. The total investment of the project is 370 million yuan. The storage part of the project has already been completed and put into use. The production line construction part is expected to receive a construction permit in the near future, and is scheduled to be put into operation around the 2025 Spring Festival. 3) Polystyrene No. 1 and No. 2 production line equipment renewal project: Some equipment of the existing first phase production plant was upgraded. The total investment of the project is 36.4 million yuan, and it is scheduled to be completed by the end of 2023. 4) R&D center construction project: total investment of 6.08 million yuan, construction period 18 months.
Risk warning: business performance declined year-on-year; raw material procurement prices fluctuated or increased; the proportion of single supplier procurement was too high.