Recently, Xiangyuan New Materials released its 2021 annual report. The company achieved operating income of 457 million yuan for the whole year, a year-on-year increase of 44.44%; the net profit attributable to shareholders of the parent company was 87.7363 million yuan, a year-on-year increase of 17.09%. In addition, the company distributed a cash dividend of 3 yuan (tax included) to all shareholders for every 10 shares, and transferred 5 shares for every 10 shares to all shareholders with the capital reserve. During the reporting period, the company continued to build its core competitive advantages in the field of new materials. On the basis of consolidating existing customers and channels, it continued to expand horizontally and expand new product markets. At the same time, in terms of sales, it entered Huawei's supply chain system and The application of new energy industry has promoted the rapid growth of the company's revenue and net profit.

Steady growth in operating performance

Demand in consumer electronics and new energy fields continues to expand

The main business of Xiangyuan New Materials includes environmentally friendly cross-linked polyolefin foam (XPE/IXPE/IXPP), polyurethane foam (PU), silicone foam materials, etc. The products are mainly used in architectural decoration, consumer electronics, and automotive interiors. It plays the role of waterproof, noise reduction, buffering, sealing, heat preservation and so on.

According to the annual report data, in 2021, the company's overall production and sales of rubber and plastic products will increase by 50.49% and 39.71% respectively compared with the same period of the previous year. In terms of revenue scale, the company's core product IXPE achieved revenue of 435 million yuan, an increase of 42.93% over the same period of the previous year, and revenue accounted for 95.19%, which promoted the company's overall performance to improve steadily.

Research shows that the driving factors of Xiangyuan New Materials' revenue scale and production and sales growth mainly come from the company's promotion of customer development and the acceleration of production capacity construction. From the client's point of view, in 2021, the company will fully explore market opportunities in various application fields such as architectural decoration, consumer electronics, automotive interiors, new energy batteries, medical treatment and packaging, and its products have been widely used in downstream well-known brands at home and abroad in the product. According to the annual report, the company's current customer base includes: Aili Home Furnishing, Walrus New Materials, etc. in the field of building materials; end customers OPPO, vivo, Xiaomi, Huawei, etc. in the field of consumer electronics; and Ford, Great Wall, Changan in the field of automotive interior materials etc., and formed a stable and sustainable cooperation with it.

From the perspective of production scale, at this stage, Xiangyuan New Materials has three production bases including Guangde, Hanchuan and Guangxi. The designed production capacity of IXPE and IXPP is 128.87 million square meters, and the capacity utilization rate is close to 90%. Since its listing, the company has raised funds to invest in the construction of a modern polyolefin foam material production base to expand the production scale of IXPE and IXPP, while continuing to deploy overseas production capacity and expand overseas markets. It is expected that it will inject new growth momentum into the company's performance in the future.

According to the data of the National Bureau of Statistics, during the ten years from 2009 to 2019, my country's foam plastic production increased from 1.8705 million tons to 2.5819 million tons, with an average annual compound growth rate of 3.28%, and the industry continued to develop steadily. In recent years, the demand for consumer electronics and new energy has ushered in continuous expansion. On the one hand, the rapid development of industries such as smartphones, computers, and smart wearable devices requires the additional functionality of supporting materials to be continuously enhanced; market space.

Industry analysts said that in the field of consumer electronics, some products of Xiangyuan New Materials have been on par with international industry leaders in terms of performance, and some products have achieved import substitution. In the field of automotive interiors, the company's IXPP material products have excellent heat insulation, temperature resistance, insulation, corrosion resistance, weather resistance, dust resistance, water resistance and other properties, and have broad application prospects; in the field of new energy, the company's PU and silicone products Foam materials and other products are also worthy of attention in the application prospects of soft-packed cell spacers, square-shell cell spacers, PACK thermal insulation buffers, liquid cold plate support, and PACK box sealing. It is expected that the company will develop in the future. and play an important role in promoting the growth of operating performance.

R&D investment increased by 47.52% year-on-year

Phased results have been achieved in the direction of PU foam and silicone foam

At the same time that the market demand continues to improve, Xiangyuan New Materials continues to develop and innovate, and its technological advantages have gradually become an important support for its high-quality development.

The annual report shows that the company's R&D investment in 2021 will be 28.9224 million yuan, an increase of 47.52% over the same period last year. During the reporting period, on the one hand, the company carried out improved research and development on the existing product categories according to the needs of the market and customers to improve the applicability of the products and fully meet the needs of customers; Inject the driving force of innovation and enhance the company's sustainable development ability.

The data shows that as of December 31, 2021, the company has 25 invention patents and 55 utility model patents, and has mastered the core technology of irradiation production, which can produce high-tech products. In addition, in PU foam and silicone foam The cotton direction has achieved phased results.

As one of the few domestic enterprises that can produce ultra-thin IXPE materials and mass-produce IXPP materials, at present, the company's production technology and process level are at the forefront of the industry, and the production of ultra-thin IXPE materials and IXPP materials has achieved import substitution. At this stage, Xiangyuan New Materials has become the preferred supplier of domestic foam materials, and has established a strong competitive advantage in technology and scale. From the perspective of industry development trends, in the future, with the increasing demand for domestic replacement of high-end new materials, the comprehensive advantages of Xiangyuan New Materials will continue to appear in the development, which will drive long-term steady growth in performance.