DFGY Zirconium announced a plan to increase growth on the evening of August 30. The company plans to issue no more than 124 million shares to no more than 10 specific investors. The total fundraising will not exceed 1.139 billion yuan, with an annual output of 18 million pieces. Zirconia ceramic mobile phone backplane industrialization project, annual production of 1,000 tons of zirconia ceramic microbeads construction project and zirconia ceramic powder industrialization project for surgical implants.
The company is mainly engaged in the research, development, production and operation of zirconium and zirconium series products. The current products mainly include zirconium ore, zirconium silicate, zirconium dioxide, fused zirconium, zirconia, composite zirconia, sponge zirconium and zirconia ceramic structural parts. Eight series of hundreds of varieties and specifications.
The announcement pointed out that in recent years, the market for traditional zirconium products has been in a state of oversupply. Enterprises in the same industry are actively transforming into the modern emerging zirconium products field, and continue to expand to high value-added downstream applications. High-purity composite zirconia, sponge The downstream applications such as zirconium (industrial grade, nuclear grade), structural ceramics, electronic ceramics, functional ceramics, and bioceramics continue to develop, driving the continuous and stable development of the zirconium industry.
In order to comply with the development trend of the industry, the company also vigorously expands new business areas on the basis of consolidating the original product line. It takes advantage of the company's composite zirconia powder to expand into the downstream emerging zirconium products. Grinding beads, zirconia ceramic production lines for surgical implants, further enhance the company's core competitiveness.
Specifically, electronic ceramic products can achieve the special performance requirements in the design of electronic products through precise control of the surface, grain boundaries, and dimensional structure. Zirconia ceramics have strong overall performance as appearance parts. In the medium and long term, the back plate of zirconia ceramic mobile phones will be in short supply. The improvement of the grinding equipment requires the particle size of the grinding medium to be smaller and smaller, and at the same time, the finer and micronized materials have higher and higher requirements for the performance of the grinding medium. Zirconia ceramic beads have the characteristics of high density, high hardness, high toughness, wear resistance, etc., and have become the mainstream of material grinding media. As China enters an aging society, the market for surgical implants is huge. Zirconia ceramics will become an ideal material for surgical implants due to their superior properties.
DFGY Zirconium stated that the production capacity of the existing structural ceramic production line could not meet the company's development needs. Therefore, the company urgently needs to increase investment to build a structural ceramics production base that is more advanced, has a high degree of automation, and has higher environmental protection, safety and health standards. After the new production base is completed and put into production, it will rapidly expand the production scale and enhance the company's profitability and competitiveness.
It is understood that, in addition to DFGY Zirconium's plans to expand into the downstream emerging zirconium products field, the company also plans to seize the opportunity in upstream resources. Zircon ore is the starting point of the zirconium industry and the source of the zirconium industry chain. Its quality and grade directly affect the quality and manufacturing cost of downstream products. Recently, the zirconium industry has gradually picked up, and the foreign zircon sand giant Iluka recently said that the sales price of zircon sand in the fourth quarter will continue to rise, increasing by 170 US dollars per ton to 1,580 US dollars, and the validity period is 6 months.
The domestic zirconium ore resources are relatively barren, and the ore sand required for production mainly comes from abroad. The company is committed to finding high-quality zirconium ore around the world. The semi-annual report shows that Oriental Zirconium and Mingrui Zirconium and Image have reached the capital investment required for the project to develop the Bunalen ore project in the North Perth Basin. It is expected that all project conditions for the project will be completed in the third quarter of 2018. In the fourth quarter, the first ore was formally put into production and produced.
According to the semi-annual report, the third-party agency conducted two updates of the project feasibility study results in 2018. The report shows that the net present value of the Bunalen ore project increased from 135 million to 235 million, and the internal rate of return increased from 64%. To 125%; and the smooth progress of project financing and construction, many institutions believe that it may become the long-term profit growth point of Eastern Zirconium.