China National Science And Technology Co., Ltd. Plans To Land On The Science And Technology Innovation Board And Become The "Core Domestic Manufacturer Of Environmental Protection Catalyst" After 16 Years Of Hard Work

After half a year from the acceptance to the meeting, on June 28, 2021, the initial listing application of Zhongzi Environmental Protection Technology Co., Ltd. (hereinafter referred to as "zhongzi technology") successfully passed the meeting of the municipal Party Committee on the science and technology innovation board, and then it was registered and took effect on August 24, 2021, and will soon land on the science and technology innovation board.

Founded in 2005, zhongzi Technology Co., Ltd. is located in the West high tech Zone of Chengdu. It is a high-tech enterprise focusing on the R & D, production and sales of environmental protection catalysts. It is one of the few major domestic manufacturers in the field of tail gas treatment catalysts for mobile pollution sources (motor vehicles, non road machinery, ships, etc.).

At the same time, zhongzi science and technology is also actively exploring the application of its technology in hydrogen fuel cell electrocatalyst and other new energy fields.

In this IPO, zhongzi technology plans to issue no more than 21.5087 million shares, and plans to raise 1.459 billion yuan, which will be used in new catalyst Intelligent Manufacturing Park, automobile aftertreatment device intelligent manufacturing industrial park, national level 6 B and above emission standard catalyst research and development capacity, hydrogen energy fuel cell key materials research and development capacity construction, supplementary working capital and other projects.

Break the monopoly of foreign giants and become the core domestic manufacturer of environmental protection catalyst

From the perspective of industry background, in the field of environmental protection catalysts, at present, the foreign environmental protection catalyst giants, mainly BASF, Johnson Matthey and Meili Ke, have an overall market share of more than 71% in China. Domestic enterprises have made certain breakthroughs in some fields such as self owned brand vehicles and commercial vehicles, which can be said to break the technological monopoly of foreign environmental protection catalyst giants.

Among them, zhongzi technology, Weifu high tech, Guiyan platinum industry, Kailong high tech (300912. SZ) and akolan (300816. SZ) have large production scale. According to the calculation of relevant data, the market share of natural gas vehicle catalyst in 2019 and 2020 will be 11.10% and 20.69% respectively, and the market share in the field of natural gas heavy truck will be 30.55% and 48.55% respectively.

At present, the new generation of tail gas treatment catalysts, which meet the national six emission standards, have been supplied in bulk to mainstream engine plants such as Yuchai, Yunnei, Shangchai, Liuji power, Xiaokang power, and mainstream vehicle manufacturers such as SINOTRUK, FAW Jiefang and BAIC Futian, and have deeply participated in Changan Kuai, SAIC Wuling, Liuji power, Chang'an Automobile, etc Five gasoline engine customers, including GAC group, have developed 8 models in total, and 4 customers including Yunnei, Yuchai, Weichai and FAW have developed 19 diesel models and 6 natural gas models.

From 2018 to 2020, zhongzi science and Technology Co., Ltd. has achieved operating revenue of 337 million yuan, 1001 million yuan and 2.577 billion yuan respectively. From 2018 to 2020, the average annual compound growth rate of business income is as high as 176.89%, showing a sustained and rapid growth trend.

In the same period, the net profits of Zhongzi science and Technology Co., Ltd. were - 59.3 million yuan, 86.55 million yuan and 218 million yuan, respectively.

From the perspective of product structure, in terms of natural gas vehicle products, China National Science and Technology Co., Ltd. has focused on natural gas heavy-duty commercial vehicle products. Based on the existing main customers such as Yuchai, Yunnei, FAW Jiefang and BAIC Foton, the company has developed new mainstream customers such as sinotruk and Shangchai and realized batch supply. With the full implementation of national standard 6 for heavy natural gas vehicles from July 1, 2019, the revenue will reach 761 million yuan and 2.199 billion yuan respectively from 2019 to 2020, which is the main driving force for the company's continuous and rapid growth of revenue.

According to the data, from 2018 to 2020, the revenue from catalyst products of natural gas tail gas treatment accounted for 39.91%, 76.08% and 85.37% respectively, becoming its core revenue source.

In addition, in terms of diesel vehicle products, the data shows that from 2018 to 2020, the national five products of China Academy of technology diesel vehicles contributed 146 million yuan, 129 million yuan and 152 million yuan respectively. Among them, the company's heavy-duty diesel vehicle national five products have been supplied to mainstream engine plants and vehicle manufacturers such as Yuchai, Yunnei and BAIC Futian, With the implementation of national VI emission standard for heavy duty diesel vehicles from July 1, 2021, heavy duty diesel vehicles are expected to become the company's new revenue and profit growth point.

In terms of gasoline vehicle products, China National Science and Technology Co., Ltd. has participated in one "863" National High Tech Research and development plan. The company has realized the batch supply of light commercial vehicle customers such as Liuji power and Xiaokang power. The data show that the company's gasoline vehicle exhaust treatment catalyst products will achieve 57 million yuan and 108 million yuan respectively from 2019 to 2020.

In terms of motorcycle products, China National Science and Technology Co., Ltd. presided over one pilot project of national key R & D plan. The company maintains good cooperation with big Yangtze River, Chunfeng power and other well-known domestic motorcycle enterprises, and has obtained a number of national four environmental protection announcements for motorcycles.

In the past 16 years, we have made great efforts to develop key technologies and master a complete set of core technologies for environmental protection catalysts

It is worth mentioning that the environmental protection catalyst industry has a significant technology intensive feature, and the required technical barriers are very high. To meet such challenges, China National Science and technology always attaches great importance to R & D and innovation. After more than 16 years of continuous research and development, the company has a number of core technologies from formulation to process of environmental catalysts.

From 2018 to 2020, the R & D investment of Zhongzi technology was 42.9837 million yuan, 44.9962 million yuan and 77.2366 million yuan respectively, showing a continuous growth trend. Even in 2018, facing financial difficulties and poor performance, the company also insisted on early investment based on the forward-looking judgment of technology and product development trend under the background of emission standard upgrading, R & D investment accounted for 12.77% of operating revenue.

Up to now, zhongzi technology has mastered many core technologies of environmental protection catalysts, including high performance rare earth oxygen storage material technology, high temperature resistant and high specific surface material technology, noble metal high dispersion and high stability technology, and advanced coating technology. At present, the company has obtained 55 invention patents, including 53 domestic invention patents and 2 international PCT invention patents.

With the continuous improvement of China's emission standards for mobile pollution sources, China's six emission standards for light vehicles have been implemented in advance in Beijing, Shanghai, Tianjin, Pearl River Delta, Chengdu and Chongqing since July 1, 2019.

In this context, as of June 2021, zhongzi science and technology has developed a new generation of exhaust gas treatment catalysts that meet the national VI emission standards, and has obtained 11 natural gas engine type national VI announcement, 5 diesel engine type national VI announcement and 439 gasoline engine vehicle national VI announcement, and has achieved the national emission standard of Yuchai, Yunnei, Shangchai, Liuzhou engine power, etc Xiaokang power and other mainstream engine plants and mainstream vehicle manufacturers such as SINOTRUK, FAW Jiefang and BAIC Foton supply products in batches. It is one of the few domestic manufacturers with the technology and products of China No.6 automobile exhaust treatment catalyst.

In addition to natural gas vehicle products, diesel vehicle products, gasoline vehicle products, on the other hand, China National Science and Technology Co., Ltd. is also actively exploring the application of its technology in hydrogen fuel cell electrocatalyst and other new energy fields.

At present, zhongzi technology has successfully developed the first generation platinum carbon catalyst, which has the characteristics of high activity, good stability, large electrochemical active area and low cost. In 2020, the company, together with Xiamen University, Institute of chemistry, Chinese Academy of Sciences, Fudan University, Ningde Times New Energy Technology Co., Ltd., and other universities and enterprises, participated in the national key R & D project of "synthesis technology and batch preparation of high performance / anti poisoning vehicle fuel cell catalyst", The company has undertaken the research and development task of catalyst industrial production and working condition verification.

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