Yes! Pheasant Shares Enter Ningxia To Build Environmentally-Friendly High-Grade Disperse Dyes.

Jiangsu golden pheasant industrial Limited by Share Ltd (hereinafter referred to as "pheasant stock") announced in the evening of January 19th that the company signed a framework agreement with the Ningxia Hui Autonomous Region Ningdong energy and chemical industry base management committee (hereinafter referred to as "Ningdong Management Committee"), and plans to use self financing to set up a company in the Ningxia Hui Autonomous Region Ningdong energy chemical base and implement construction projects.

The agreement shows that Jinji shares will invest in Ningdong to build dyestuff intermediates, disperse dyes and dilute acid regeneration projects. It is divided into two phases: first phase construction of 7 projects, two projects of K acid and environmentally-friendly high-grade disperse dyestuff 5 projects.

The first textile network has reported that the investment of the golden pheasant joint stock plan is 184 million 854 thousand and 700 yuan, which is invested in the construction of 30 thousand tons of high-grade commodity reactive dyestuff. The total investment is 511 million 940 thousand and 900 yuan, and the production of high-grade reactive dyes such as low alkali LA series, JSE series and inkjet printing PJ series, reactive blue 19# and CN series are expanded. The company expects new sales revenue of 1 billion 7 million 591 thousand and 100 yuan per year and a new net profit of 163 million 76 thousand and 200 yuan, bringing new growth potential to the company.

JC said that the substantive agreement of the cooperative project signed by the company and Ningdong Management Committee will help the company make full use of the energy advantages of the central and western regions, reduce production costs and enhance the competitiveness of the company. At the same time, it will enhance the autonomous supply capability of the main intermediates of the company, reduce the negative impact caused by the supply and demand of raw materials and price changes in the upstream industry, and gradually improve the layout of the company's business by creating product categories to create a new profit growth point for the company.

Insiders said that along with the stricter domestic environmental requirements, resources will be tilted to high value-added industries. With the increase of environmental protection costs, leading dye enterprises will gain more competitive advantages and will therefore benefit from it.

Guo Qiang securities analyst Pu Qiang said earlier that since the 70s of last century, China's dyestuff intermediates industry began to start, and by 80s, the rapid development of China's textile industry, the global dye production gradually shifted to Asia, and greatly promoted the rapid development of China's dyestuff intermediates industry. By 90s, China has become the world's largest producer of dye intermediates. In recent years, China's dyestuff industry has made great progress, and dye production has been ranked number one in the world for many years. The rapid development of dyestuff industry depends on the rapid growth of the dye intermediates, especially the export demand and market competition, which have promoted the development of production technology and quality of intermediates, as well as the development of varieties and output.

Unlike pesticides and pharmaceutical intermediates, dye intermediates are basically only generic products, such as H acid, para ester, reductant, etc. In the past, dyestuff intermediates were single and competitive. Now, under the high pressure of environmental protection, the capacity of small and medium-sized enterprises has been affected, the impact of large enterprises has been enhanced, and the level of profitability has been restored.

Pu Qiang introduced that the current domestic environmental protection trend can be summarized as three points: first, environmental protection is regular and strict; in the future, the trend of environmental protection will not change; the development path of green chemical industry will remain unchanged; two, enterprises will enter the garden and standardize, and the cost will increase obviously; three, it is difficult to use land, and the examination and approval of new projects will be difficult, and there will be no way to put traditional projects into production. Observation, in order to face the constantly pressurized environmental protection policy, the way out for enterprises is to enhance the added value of products and industrial integration. In other words, enterprises will not have enough space to plan new factories when the cost is increasing. The source of future profit growth or R & D drive will increase the added value of products, or build an industrial platform through mergers and acquisitions.

At present, the intermediates industry in China can meet the needs of most industries of pesticides, pharmaceuticals and dyestuffs in the downstream. However, a small part of the demand is dependent on imports. The intermediates will focus on developing intermediates that are not yet available in China. Overseas intermediates have attached great importance to technology research and development, and have achieved good returns. We should increase R & D investment, strengthen independent innovation, and have more independent innovation intermediates, including innovation of compounds, process routes and technological conditions. We can acquire independent intellectual property rights and more discourse power, and at the same time, the gross margin of enterprises will have more room for improvement.

Pu Qiang believes that in the long run, by virtue of its technological advantages, it will extend to the downstream of the industrial chain, and the profit margins of enterprises will further improve; and the general type, especially the dye intermediates, will benefit from environmental protection requirements and suppress the capacity of SMEs.

Public information shows that the company is mainly engaged in research and development, production and sales of dyestuffs. Its main products are reactive dyes and dyeing and printing for textiles. In the past 2016-2018 years, the company's operating income was 1 billion 1 million yuan, 1 billion 68 million yuan and 1 billion 202 million yuan respectively, and net profit of 116 million yuan, 109 million yuan, 104 million yuan respectively, and gross profit margins were 26.23%, 23.16% and 20.88% respectively.