On July 26, the catalog of innovation and development of industrial foundations (2021 edition) (hereinafter referred to as the catalog) compiled by the expert committee of the national industrial foundation under the guidance of the Chinese Academy of Engineering and National Manufacturing Power Construction Strategy Advisory Committee was released during the 2022 National Manufacturing Power Construction Expert Forum in Ningbo, Zhejiang Province. The compilation and publication of the catalog is the task and the goal of “strengthening the capacity building of the industrial base” in the outline of the 14th five-year plan for national economic and social development and the long-term goals in 2035. The catalog lists 21 key areas, such as textiles, new materials, information and communication equipment, basic software and industrial software, machine tools and basic manufacturing equipment and robots, environmental protection and low-carbon equipment and comprehensive resource utilization. The listed products and technologies are the core of China’s industrial innovation and development, which can effectively consolidate the cornerstone of China’s industrial development and support the construction of manufacturing strength. Among them, synthetic mica has also been successfully selected in the catalog of related products and technologies in the field of building materials.
Huanqiu New Materials International (6616.HK), as the largest pearlescent pigment manufacturer in China, has mastered a complete set of synthetic mica core technologies, among which “conductive mica preparation method” won the medal Guangxi Invention and Creation Gold Medal, and “Method of Preparing KMG3 (ALI3O10) F2 Crystal Powder by Wet Synthesis” won the Guangxi Invention and Creation Silver Medal . According to Jost Sullivan’s report, the total market share of the top five synthetic mica pearlescent materials in China accounts for 61.46% of the total market size. Among all companies, Global New Materials ranks first in the world, with a market share of 26.25%. According to the construction of the second production plant of the fund-raising project when the company went public, the company will build a synthetic mica project with an annual output of 50,000 tons. After the project is completed and put into production, the company will become one of the largest synthetic mica production bases in the world, and its global market share will be further enhanced.
Favorable Global Policies Promote the Development of Pearl Industry In fact, not only our country, but also countries around the world have introduced corresponding stimulus policies for the development of pearlescent material industry in the early years. In November 2018, Health Canada introduced the amendment to the Food and Drugs Act (SOR/2018-248), which further expands the application of mica pearlescent pigments to the pharmaceutical industry, expands the scale of market, stimulated demand and promoted the development of the industry. In April 2019, the United States Food and Drug Administration introduced the amendment to the Federal Rules Act (21CFR73.350), which promoted the development of mica pearlescent pigment market scale, expanded the scope of application of mica pearlescent pigments, has stimulated demand and provided strong support for upstream manufacturers to expand their production capacity. In November 2019, the National Development and Reform Commission issued the Industrial Structure Adjustment Guidance Catalog (2019 edition) (revised in 2019), which clearly stated that the development and production of organic pigments high performance with high lightfastness and weather resistance should be included in the encouraged high-tech content. The high-end pearlescent materials belong to the state-encouraged high-tech industries and have the corresponding encouragement policy support. In March 2020, the Ministry of Finance and Taxation issued the announcement on increasing the export tax refund rate of certain products, which mentioned that “pigments and products made from them ci” were included in the export tax refund list. As an important part of pigments, pearlescent materials have increased their export tax refund rate from 0% to 13% since March 20, 2020. The increase in tax refund rate will also promote the export of pigment products and improve the international competitiveness of domestic pigments. industry. In April 2021, the National Technical Committee for Standardization of Paints and Pigments released a number of new industry labels, including UV curing coatings for cosmetic packaging materials, coatings for rail transport vehicles and coatings marine antifouling and self-peeling, which stipulated requirements, test methods and inspection rules for coatings; Based on the good hydrophilicity and safety of pearlescent pigments, the promulgation of industry standards will further deepen the application of pearlescent pigments in cosmetics and automotive coatings. In July 2021, the National Development and Reform Commission mentioned in the “14th Five-Year Plan for the Development of Circular Economy” that it is necessary to strengthen the construction of circular economy and vigorously promote the production green and low-carbon environmental protection in manufacturing. Then, pearl pigment products with synthetic mica as raw materials are beneficial to the development of an environmentally friendly, clean and heavy metal-free pearl pigment industry in accordance with the production process, and speed up the replacement process. traditional pigments.
Production capacity has reached a new level and performance has entered a new period of acceleration. On August 17, Global New Materials International announced that a board meeting would be held on the 27th of this month to approve Global New Materials International’s 2022 interim results and release the interim results announcement, and consider recommending the interim dividend (if applicable) . Global New Materials International has stepped up the construction of fundraising projects in a planned manner since its IPO. At present, with the completion of the production capacity of 6000 tons of pearlescent pigments in the first phase of the company’s second-phase workshop, the total production capacity is expected to increase by more than 25%; In addition, as the pearlescent pigment market has been in short supply for a long time in recent years, with the gradual arrival of the new international capacity of Global New Materials, the profits and excess profits brought by the new capacity should also be reflected in the interim results. In the next 3-4 years, the production capacity of 30,000 tons of pearlescent pigments and synthetic mica supporting the fundraising project will also be released in an orderly manner, which will support the growth of the company’s performance. . Secondly, with the continuous expansion of Global New Materials International in the field of new energy battery materials since last year, and in the first half of this year, it has continuously brought good news of product research and development and successful market tests. We believe that the expansion of Global New Materials International into the new energy field will also significantly raise the ceiling of the company’s field in the medium to long term. Especially in the short to medium term, we are optimistic about the upward elasticity of the company’s profit margin and the growth in performance induced by the planned release of production capacities over the next few years.
Regardless of industrial development trend or policy direction, industries and products that meet the requirements of low carbon, ecology, environmental protection and health will become the mainstream in the future. , while the traditional industries with low efficiency, high energy consumption and high pollution will be eliminated, and the complete replacement of industries and products will be successfully completed. Companies such as Global New Materials International, which have already achieved the leading position in domestic sub-industries, will continue to consolidate their leading position in the industry in the future with the continuous expansion of business scale and the supplement of diversified tracks. In the context of policies conducive to global industry and domestic substitution, we will continue to strengthen and modernize.