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Policies Boosting Industrial Development Global New Materials International (6616.HK) ushered in an accelerated performance period

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Policies Boosting Industrial Development Global New Materials International (6616.HK) ushered in an accelerated performance period

September 18
06:08 2022

On July 26th, the Catalogue of Industrial Foundation Innovation and Development (2021 Edition) (hereinafter referred to as the Catalogue) compiled by the National Industrial Foundation Expert Committee under the guidance of the Chinese Academy of Engineering and the National Manufacturing Power Construction Strategy Advisory Committee was released at the 2022 National Manufacturing Power Construction Expert Forum in Ningbo, Zhejiang Province. The compilation and release of the Catalogue is the task and goal of “strengthening the capacity building of 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 Catalogue 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 utilization of resources. The products and technologies listed are the core of China’s industrial innovation and development, which can effectively consolidate the cornerstone of China’s industrial development and support the building of a manufacturing power. Among them, synthetic mica has also been successfully selected into the catalogue 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 core technologies of synthetic mica, among which “Preparation Method of Conductive Mica” won the gold medal of Guangxi’s invention and creation achievement, and “Preparation Method of wet synthesis KMG3 (ALI3O10) F2 crystal powder” won the silver medal of Guangxi’s invention and creation achievement. According to Jost Sullivan’s report, the total market share of the top five synthetic mica-based pearlescent materials in China accounts for 61.46% of the total market size. Among all enterprises, 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 fundraising 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.

Global favorable policies promote the development of pearl industry In fact, not only our country, but also countries all over the world have introduced corresponding stimulus policies for the development of pearlescent materials industry in the early years. In November, 2018, Health Canada introduced the amendment to the Food and Drug Law (SOR/2018-248), which further expanded the application scope of mica pearlescent pigments to the pharmaceutical industry, expanded the market scale, stimulated the demand and promoted the development of the industry. In April 2019, the Food and Drug Administration of the United States introduced the amendment to the Federal Rules Act (21CFR73.350), which promoted the further development of the market scale of mica pearlescent pigments, expanded the application scope of mica pearlescent pigments, stimulated the demand, and provided strong support for upstream manufacturers to expand production capacity. In November 2019, the National Development and Reform Commission issued the Guidance Catalogue of Industrial Structure Adjustment (2019 edition) (revised in 2019), which clearly stated that the development and production of high-performance organic pigments with high light fastness and high weather fastness should be included in the encouraged high-tech content. High-end pearlescent materials belong to the encouraged high-tech industries of the state, and enjoy 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 Some Products, which mentioned that “pigments and products based on them” were included in the export tax rebate list. As an important part of pigments, pearlescent materials have increased their export tax rebate rate from 0% to 13% since March 20, 2020. The increase of tax rebate rate will also promote the export of pigment products and improve the international competitiveness of domestic pigment industry. In April, 2021, the National Paint and Pigment Standardization Technical Committee issued a number of new industry labels, including UV Curing Coatings for Cosmetic Packaging Materials, Coatings for Rail Transit Vehicles, and Marine Fouling and Self-peeling Anti-fouling Coatings, which stipulated the requirements, test methods and inspection rules of 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 Circular Economy Development” that it was necessary to strengthen the construction of circular economy and vigorously promote green production and low-carbon environmental protection in manufacturing. Then the pearlescent pigment products with synthetic mica as raw materials are beneficial to the development of pearlescent pigment industry which is environmentally friendly, clean and free of heavy metals in accordance with the production process, and accelerate the process of replacing traditional pigments.

Production capacity has reached a higher level and performance has entered a new acceleration period. On August 17th, Global New Materials International announced that a board meeting will be held on the 27th of this month to approve the 2022 interim results of Global New Materials International and publish the interim results announcement, and consider recommending the interim dividend (if any). Global New Materials International has stepped up the construction of fundraising projects in a planned way since its listing. 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 pearl pigment market has been in short supply for a long time in recent years, with the gradual landing of the new international capacity of Global New Materials, the excess profits and profits brought by the new capacity are also expected to be reflected in the interim results. In the next 3-4 years, the production capacity of 30,000 tons of pearlescent pigments and supporting synthetic mica of 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 continuously brought good news of successful product research and development and testing to the market. We believe that the expansion of Global New Materials International in the field of new energy will also significantly enhance the ceiling of the company’s field in the medium and long term. Especially in the short and medium term, we are optimistic about the upward elasticity of the company’s profit margin and the performance growth brought about by the scheduled release of production capacity in the next few years.

No matter from the industrial development trend or policy orientation, industries and products that meet the requirements of low carbon, green, environmental protection and health will become the mainstream in the future, while those 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. Under the background of favorable policies of global industry and domestic substitution, we will continue to strengthen and upgrade.

Media Contact
Company Name: Chesir
Contact Person: Wanglulu
Email: Send Email
Phone: 18345162685
City: Liuzhou
State: Guangxi
Country: China
Website: http://www.chesir.net/

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