Gross Profit Rate Ultra Light Wei Composite Technology, To Raise 1000 Tons Of Domestic T700 Class Carbon Fiber Project Investment Volume!

The Polytron Technologies Inc (hereinafter referred to as "Zhong Jian Technology") issued a notice today (November 12th), according to the actual situation of the construction progress of the company's "1000 ton / year domestic T700 class carbon fiber expansion project" (referred to as the "1000 ton line" project) and the actual expenditure of the project. In November 9th, the company passed the "motion to adjust the total investment volume of the" 1000 ton / year domestic T700 class carbon fiber expansion project ". The total investment of the 1000 ton line project was raised from the original 552 million yuan to 683 million yuan.

　　 According to science and technology in China, the 1000 ton line project has raised funds for the company's listing. As of September 30, 2019, the total amount of the 1000 ton line project has been accumulated by 543 million 280 thousand and 600 yuan, which is close to the total investment approved by the original project by 552 million yuan. With the implementation of the 1000 ton line project, it is estimated that the total amount of investment approved by the project can not meet the construction needs. In order to ensure the smooth implementation of the kiloton line project and put into production in time, the budget of the project needs to be adjusted. According to the construction of 1000 ton line project, combined with the procurement contract signed for the construction of the 1000 ton line project, the company expects to increase 131 million yuan on the basis of the original total investment, and the total investment budget of the kiloton line project is 683 million yuan.

According to the science and technology explanation, the 1000 ton line project is designed to satisfy customers' demand for higher performance carbon fiber products. China's first highly intensive, automatic and flexible carbon fiber production line is designed independently. There is no precedent for the feasibility study and the actual construction of China. The domestic construction, installation and design of the participating units have no mature experience, which leads to an increase in the total investment of the project. The total investment of the adjusted 1000 ton line project amounts to 683 million yuan.

Public information shows that technology is a rising star in the field of carbon fiber. The company was founded in 2008 and listed on the gem in 2018. It is a high-tech enterprise specializing in R & D, production, sales and technical services of high performance carbon fiber and related products. It is a research and development manufacturer of high performance carbon fiber and related products with complete independent intellectual property rights. The main products of the company are high performance carbon fiber and carbon fiber fabrics. The technical specifications of the products have reached the advanced level of the international similar products, and are mainly used in the aerospace field at present.

It is understood that the industrialization of products of China Jian Technology has also reached the level of T1000 in Dongli. The ZT7 series (above T700 grade) high performance carbon fiber has been the first to achieve the comprehensive and stable application of key domestic aerospace models.

Our products include carbon fiber and carbon fiber fabric. In terms of carbon fiber, the company has a 150 ton / year (12K) or 50 ton / year (3K) high performance carbon fiber flexible production line. The carbon fiber products include high-strength ZT7 series (above T700 level), ZT8 series (T800 level), ZT9 series (T1000/T1100 level) and high model ZM40J (M40J grade) graphite fiber, among which the products of large-scale production are ZT7 series. In terms of carbon fiber fabric, the carbon fiber fabric provided by the company is divided into plain cloth and unidirectional cloth according to the weaving method. The company mainly produces ZT7 series carbon fiber corresponding carbon fiber fabric. At present, the ZT7 series carbon fiber products produced by the company have been verified to take the lead in achieving the comprehensive application of eight major products in the high-end field of domestic aviation and aerospace.

According to the financial report, in the past 2016-2018 years, the operating income of science and technology in China was 150 million yuan, 169 million yuan, and 213 million yuan, up 10.40%, 12.4% and 25.75% respectively. The net profit to the mother was 57 million yuan, 110 million yuan and 121 million yuan respectively, representing an increase of 21.46%, 21.46% and 21.46% over the same period. The company's revenue mainly comes from carbon fiber and carbon fiber fabrics. Due to the continuous expansion of applications in the aerospace field, orders continue to grow, helping to maintain sustained growth in performance. Gross profit margin, from 2016 to 2018, the gross profit margin of the company increased year by year, mainly due to the substantial increase in military orders, and the reduction in unit cost helped to increase the gross profit margin of carbon fiber and fabric significantly.

　　 In the first half of 2019, the technology revenue of China Science and Technology Corporation reached 115 million yuan, up 15.39% over the same period last year, and realized operating profit of 62 million 660 thousand yuan, an increase of 15.58% compared with the same period last year. Net profit of 52 million 650 thousand yuan, an increase of 18.67% over the same period last year; net profit of 50 million 420 thousand yuan after deducting the net profit, 37.13% year-on-year; net cash flow from operating activities 31 million 560 thousand yuan, an increase of 17 million 630 thousand yuan over the same period last year; and the weighted average net assets yield 7.59%, down by 37.13% percentage points.

Haitong Securities analyst Liu Wei said that carbon fiber belongs to high technology intensive products, the industry barrier is high, the stability of the product is demanding. At present, the company's ZT7 series carbon fiber has achieved stable mass production and has been applied to the high-end field of aviation and aerospace. It is absolutely ahead of the class T700 carbon fiber bulk supply in Dongli, Japan. The company has rapidly completed the popularization and application of the eight models, and has become one of the few enterprises in China that can rely on carbon fiber products for profit.

It is also understood that the main business of carbon fiber listed companies are mainly Guang Wei composite materials, medium and simple technology, Heng Shen shares and Jilin carbon Valley, of which Jilin carbon Valley mainly produces carbon fiber precursors, and the remaining three are also the bulk suppliers of military carbon fiber at present.

Guang Wei complex has a revenue of 1 billion 364 million yuan in 2018 and a net profit of 377 million yuan, which is far ahead of its size. The light Wei complex only takes into account the military revenue. It should be around 700 million yuan (50% of the total revenue). The 200 million of the revenue of China Science and technology is basically military products, and nearly 60 million of the shares of Heng Shen are from military products. It can be said that Guang Wei composite material is the absolute leader in the field of military carbon fiber. The T300 carbon fiber of Guang Wei composite material is widely used in military fighter aircraft, transport aircraft and helicopter batches. The development and design requirements once the equipment is finalized, the materials will no longer be changed.

Lu Zhou, a Dongxing Securities researcher, introduces the highest proportion of military products in the same industry and the leading rate of gross margin. In 2018, science and technology accounted for 99.77% of the total sales of military products, and all of them were military products. With the volume of carbon beam business, the proportion of military products declined rapidly from the original trend, and reached a peak value of 78% in 2015. In 2018, the proportion of military products accounted for about 49%, which was less than half of the total revenue. Since almost all of them were military products, the gross profit margin of science and technology in 2018 was as high as 79.6%, while that of Guang Wei was 46.7%, and that of Heng Shen and Jilin carbon valley was still negative.

Lu Zhou believes that the light and complex technology is the leader of small tow carbon fibers. The two companies are mainly in aerospace, defense and military fields. Carbon fiber is mainly made of small tow (12K and below). Its industry advantage is that it has stabilized supply for the military, and high performance small tow carbon fiber products have high gross profit and high customer viscosity. Compared with other domestic counterparts, most of them are still struggling to make profits or even lose money. Guang Wei and Zhong Jian have become leading companies in the domestic carbon fiber industry in both revenue and profit margins.