In 2021, the main business income of the whole industry of China's glass fiber and products reached 124.4 billion yuan, a year-on-year increase of 21.4%; The total profit increased by 95.5% year-on-year, reaching a record 23.14 billion yuan. In 2022, with the global energy storage demand being ignited once again, glass fiber has ushered in another high prospect of the whole industry. As the basic industry of the national economy, the state has issued a series of industrial policies to vigorously support the material industry to encourage and support the development of the wave fiber industry, which undoubtedly creates a very favorable market environment for the development of the industry.
The "13th five year plan" for the development of fiber composite industry issued by China clearly proposes to "promote the development of high-performance glass fiber, focus on the development of alkali resistant, low dielectric, flat fiber, ultra-fine electronic fiber, ultra-thin electronic cloth and other functional glass fiber, accelerate the research and development of intelligent and green production and manufacturing technology, and promote the industrialization of high-strength and high-modulus glass fiber and thermoplastic composite materials". By 2022, a series of policy documents such as the "14th five year plan" for the development of raw material industry launched by relevant ministries and commissions have once again mentioned the high and sustained attention to high-performance fibers and composites such as glass fiber and carbon fiber.
For enterprises in the industry, with the support of a series of national industrial incentive policies, it is a new challenge to break through capital barriers, scale effect barriers, technology and talent barriers, brand and certification barriers, and grasp the basic conditions of good policy guidance and system. But at the same time, this track is also full of infinite hopes and opportunities.
Looking back on the last round of glass fiber development opportunities, it comes from the direction of developing green buildings proposed by the state. Because of its safety, reliability and good energy-saving effect, glass fiber is quickly promoted to the field of building installation. This lightweight material includes GRC board, thermal insulation board, fireproof board and so on. In its subdivisions, superfine glass wool, also known as microfiber glass wool, is also widely used in construction and installation because of its excellent properties such as light constitution, high temperature resistance, low temperature resistance, sound insulation, non combustion, low thermal conductivity, fear of moths, do not prick the skin, and high hydrophobicity.
At present, entering 2022, global political and economic instability factors are increasing, and "black swan" events occur frequently, resulting in another energy crisis, and the pace of new energy development and utilization in various countries is accelerating. Taking wind power as an example, China has set off a wave of rush to install wind power in the past two years. By 2022, the installed capacity of wind power in China will still reach 55gw. As an important composite material, glass fiber is widely used in the blade manufacturing of large-scale units. Although microfiber glass wool and glass fiber wool as special materials belong to the glass fiber industry, they are now more used in the battery separator, the thermal insulation layer of the energy storage battery separator and the clean air of the manufacturing laboratory level filter paper.
From the perspective of product connotation, microfiber glass wool belongs to the "specialized, special and new" reserve project, which conforms to the long-term goal of carbon neutrality. Although the material is unremarkable, it has a very broad application prospect. Inner Mongolia Shihuan new material, which has been deeply engaged in microfiber glass materials for decades and is the first company in the region to be listed on the new third board, is such a company. It has sprung up in the tide of the times and rapidly become a dark horse in the industry.
Inner Mongolia Shihuan new material was established in April 2011. In 2015, the company's laboratory was identified as an autonomous region level glass fiber industry engineering laboratory by the people's Government of Inner Mongolia Autonomous Region. In 2016, it was rated as the "vice chairman unit" by the national microfiber glass wool and its products special committee, and passed the iso9001:2015 quality management system certification, the national high-tech enterprise certification, and the micro fiber glass wool technology research center of the autonomous region. As of 2021, the company has obtained 25 national patents. After years of development, the company has become the leading enterprise in the production of microfiber glass wool in China.
From 2017 to 2021, the company's operating revenue increased from 77.4683 million yuan to 273 million yuan. The net profit attributable to the parent company increased from 9.1746 million yuan to 69.5548 million yuan. In just four years, the profit has increased nearly 8 times. Last year, the profit was nearly 70 million yuan, which reached a blowout. The price of the company's main new materials is still rising, and its annual performance may continue to increase significantly this year.
The reason why Shihuan new materials can achieve such high-energy results is precisely because the company aims at the demand side, expands the supply side, strictly controls costs, pays close attention to technology, and relies on technological levers to achieve long-term development, which eventually becomes the cornerstone of its rise.
Since the second half of 2020, the glass fiber market has turned hot, the unit price of products has increased, and the comprehensive income of related product companies has increased. Judging from the trend, the demand of the large glass fiber industry still maintains a stable growth this year. Under the influence of the new demands of the times, the microfiber glass wool subdivided in glass fiber has more potential. Because of its particularity and high efficiency, it can be further popularized and penetrated into the use of battery separators, energy storage battery separators, laboratory filter papers and air purification in automobile, electric vehicle, ship manufacturing, wind energy, solar energy and other industries, which makes microfiber glass wool the hottest and most promising industry in the market in the past year.
Shihuan new materials is mainly based on the most advanced flame injection technology, and the production of an important product - glass fiber filter paper with large dust capacity and high filtration efficiency is the product of this process. At present, there are few manufacturers with large-scale production of this filter paper in the world, but it is widely used in electronic manufacturing, medical production, aseptic diagnosis and treatment, food processing, animal breeding and other industries. In the high-quality glass fiber purification cotton market, the market scale of glass fiber filter paper required for chip production alone reaches 4.3 billion yuan every year. The demand in the field of integrated circuit manufacturing is more than 1.7 billion yuan. There is also a demand of 1.8 billion yuan in the field of high-end panel manufacturing. The demand for medical professional clean rooms exceeds 1.5 billion yuan.
Another fact that can not be ignored is that as a local leading enterprise, the unique company scale advantage of Shihuan new material is becoming more and more obvious. Since 2004, the company has started large-scale construction. Now the factory covers an area of 33250 square meters and the engineering laboratory covers an area of 2000 square meters. At present, the company has more than one glass fiber production line. It is worth mentioning that the media reports at the initial stage of listing on the new third board show that the daily production of glass wool of Shihuan new materials is as high as 20 tons to 25 tons. At one time, the order volume soared, and the supply of products exceeded the demand.
In recent years, the state has gradually controlled the production capacity of high energy consuming industries, and has also made a series of clear regulations on the single line production capacity of the glass fiber industry. As a fine-grained industry of the glass fiber industry, Shihuan new materials is also under the jurisdiction of national policies. However, the company abides by national policies and strict energy consumption standards. The subsidiary Haisheng company completed its preparation and officially put into operation in 2021, and its production capacity has been released normally and rapidly.
At the present stage of high growth of industrial demand scale, it means that the enterprise supply chain has officially entered the stage of "comprehensive upgrading", and the most urgent task is to reduce costs. It can even be said that "thrift will lead to prosperity, and prostitution will lead to death". Therefore, Shihuan new materials regards procurement as an important part of enterprise cost reduction. According to the latest semi annual report of the enterprise, the company has raised the usual simple transaction procurement to the height of strategic procurement, and reduced the supply chain cost of the whole product production by coordinating the internal and external resource advantages of the enterprise. The latest semi annual report also mentions that the company carries out comprehensive control over procurement cost and quality through "bidding procurement, non bidding procurement, centralized procurement" and other modes.
On the other hand, in the cooperation mode with major suppliers, the company signs long strategic orders. After considering the two factor optimization of "procurement volume" and "supplier", shnm also adopts the methods of inquiry, price comparison and negotiation for special goods, projects, services and other items, and uses the game mechanism to reduce the procurement processing costs. As another big move to reduce the company's cost - acquisition of mature enterprises, Shihuan new materials has acquired Inner Mongolia jiaruihai glass fiber material Co., Ltd., which has fully mastered microfiber glass wool processing and other technologies, taking a solid step to open up the complete industrial chain of raw materials, production and equipment.