The company is a global leader in barium carbonate. The company was founded in 1999 and listed on the Shanghai Stock Exchange in 2001. The company's main business is R&D, production and sales of barium salt, strontium salt and manganese products. The company's barium carbonate is mainly used in the production of ceramics and ceramic glazes, functional glass, magnetic materials, electronic components and other barium salt products; strontium salt products are mainly used in magnetic materials, liquid crystal glass substrates, metal smelting, fireworks and other deep processing of strontium salts.
According to the company's official website, as of 2022, the company's annual output value of barium salt reached 400,000 tons, accounting for 50% of the global market. As of 23H1, the company and its subsidiary Dalong Manganese had a barium carbonate production capacity of 290,000 tons/year, ranking first in the industry in terms of production capacity and output. The company's strontium carbonate production capacity is 30,000 tons/year, ranking among domestic peers.
The barium and strontium salt industry is becoming increasingly high-end and differentiated. The company's barium and strontium salt industry belongs to the inorganic chemical industry in the chemical industry, and is a segmented and characteristic industry in the inorganic chemical industry. China's production capacity scale and production of common industrial products of barium salt and strontium salt are among the highest in the world, yet high value-added products still rely more on imports.
Along with the requirements for high-quality development of the country's economy, Chinese inorganic salt manufacturers are bound to gradually widen the gap in high-end product quality, differentiated indicators, stable performance, and personalized service in the future, and develop and break through equipment in the direction of automation, intelligence, and digitalization. The company's barium strontium salt products have certain advantages in terms of production capacity scale, product variety, timeliness of delivery and quality stability.
Accelerate collaboration in the barium salt industry and form joint efforts in innovative research and development. In 2022, the company participated in the public listing of Qingdao Red Star Chemical Group Co., Ltd. on the Qingdao Property Exchange to transfer 75% of the shares of Qingdao Red Butterfly New Materials Co., Ltd. After a public auction, the company successfully obtained 75% of the shares of Qingdao Red Butterfly New Materials Co., Ltd. and officially completed the industrial and commercial registration changes on November 30, 2022. Qingdao Red Butterfly New Materials Co., Ltd. was officially changed to the company's holding subsidiary. As of 2022, Red Butterfly's new material barium hydroxide has a production capacity of 31,000 tons/year, barium acid production capacity is 90,000 tons/year, and the production capacity of various types of barium sulfate is 10,000 tons/year. The company included Red Butterfly's new materials in the consolidated report, further extended the barium salt industry chain, and diversified the variety of high-precision barium salt products to provide one-stop procurement services for customers and the market.
High-purity manganese sulfate establishes stable cooperative relationships with downstream customers. High-purity manganese sulfate products are mainly used as ternary cathode (precursor) materials for lithium batteries. Due to its process characteristics, Dalong Manganese Industry has long been recognized by downstream customers for the quality, impurity content, stability, etc. of high-purity manganese sulfate products, and has established long-term stable cooperative relationships with some mainstream customers of downstream ternary precursors. 2022Q2, the equipment and process parameter commissioning and optimization of the 30,000 ton high-purity manganese sulfate production line expanded by Dalong Manganese Industry has been completed, and the company's manganese sulfate production capacity is in the middle of the industry.
Projects under construction have laid the foundation for the company's growth. According to the company's announcement, as of 23H1, the company's production capacity of barium carbonate, strontium carbonate, and high-purity manganese sulfate was 290,000 tons/year, 30,000 tons/year, respectively. After the fund-raising project is delivered, the company's production capacity will reach 290,000 tons/year, 60,000 tons/year, and 80,000 tons/year, respectively. Projects under construction include: 1) The construction of a new 6000 tons/year high-purity barium carbonate project: As of 23H1, the construction period is 12 months, 2023Q3. The project has completed process equipment debugging. 2) Chongqing Ruideshida Optoelectronics New Material Project: The project design has a production capacity of 60,000 tons/year of strontium carbonate, and is expected to achieve revenue of 680 million yuan/year after delivery. As of 23H1, the project has completed the preliminary formalities. The construction period is 24 months, and it is expected to be completed in 2025. 3) 50,000 tons/year high-purity manganese sulfate project for power batteries: The total investment is 210 million yuan, and the construction period of the project is 1 year. As of 23H1, the project is proceeding with the processing of planning permits and construction permits. The company expects the average annual sales revenue after completion of the project to be 301 million yuan, and the average annual profit after tax is 28.34,800 yuan.
Risk warning: production safety risk; raw material price fluctuation risk; management improvement risk.