On August 12, China`s leading manufacturer of molecular sieve adsorbents, oxygen molecular sieves and hydrogen molecular sieves, Molecular Sieve Powder, Zeolite Powder, and Activated Alumina manufacturer LYJL Nano Technology Group released the 2020 semi-annual report. The company achieved approximately 182 million yuan, a year-on-year decrease of 15.78%, the net profit attributable to shareholders of listed companies was 50.782 million yuan, a year-on-year increase of 2.51%, of which deducted non-net profit was 41,985,500 yuan, a year-on-year increase of 13.32%.
Regarding interim performance, LYJL said that in the first half of the year, affected by the Coronavirus (COVID-19) epidemic, the company's downstream industrial enterprise projects were postponed, which delayed the company's product delivery and caused the molecular sieve sales to be affected to varying degrees. However, the company's medical and healthcare oxygen generation molecular sieve has a rapid sales growth in the first half of this year, an increase of 162.40% year-on-year, effectively reducing the impact of other downstream industries on sales revenue. As the company further optimized its sales structure, the prices of some raw materials fell, and the comprehensive gross profit margin rose to 46.66%, an increase of 8.55% over the same period last year, which resulted in an increase in net profit after non-deductibles.
Demand for main products has increased
Medical healthcare oxygen molecular sieve business surges
As one of the leaders in the domestic adsorption molecular sieve industry, LYJL is also one of the few companies in China with a production capacity of 10,000 tons of adsorption molecular sieve. At present, the company has a production capacity of 31,000 tons of raw molecular sieve powder, 3,000 tons of activated molecular sieve powder, 20,000 tons of molded molecular sieves, and 5,000 tons of activated alumina. The production capacity of molecular sieve adsorbents ranks top in the world. Oxygen series molecular sieves and hydrogen series molecular sieves are the company's current main products.
The semi-annual report shows that in the first half of the year, LYJL's oxygen production series achieved sales revenue of 104 million yuan, accounting for 56.99% of operating revenue. Among them, "Household, Medical and Health Care Oxygen Series Molecular Sieves" achieved operating income of 48.184 million yuan, an increase of 29.821 million yuan over the same period last year, an increase of 162.40% year-on-year, accounting for 26.47% of operating revenue, and 46.45% of the revenue of oxygen generation molecular sieve products. .
"The oxygen generator series molecular sieve is the main core material for the pressure swing adsorption method of centralized oxygen supply and mobile medical and home health oxygen oxygen generators in medical and health institutions." Li Yidan, secretary of the board of directors and vice president of LYJL, told a reporter from the Securities Daily. Among them, the JLOX-100 series lithium low-silicon molecular sieve for oxygen generation is also one of the company's current products that have realized import substitution, realizing the import substitution of large international molecular sieve enterprises.
The China Industrial Research Institute predicts that China's medical oxygen production market will exceed 20 billion yuan in 2020.
"Affected by the Coronavirus (COVID-19) epidemic in the first half of the year, the demand for oxygen in medical institutions has increased significantly. Compared with the traditional oxygen supply method, the medical molecular sieve oxygen generator has many advantages. It is recognized by medical institutions, making LYJL Healthcare The revenue of oxygen production series molecular sieve products has increased significantly. As Chinese residents pay more and more attention to health care, the demand for oxygen production in households and medical care institutions will increase day by day. Oxygen production series products account for half of the company's revenue, and the future prospects are broad ."
In addition, molecular sieves for hydrogen production are currently one of LYJL’s main products. The company’s molecular sieves for hydrogen production have significant advantages in recovering and purifying high-purity hydrogen from industrial purge gas with high efficiency and low cost. In the first half of the year, LYJL hydrogen production series molecular sieves achieved sales income of 12.2171 million yuan, accounting for 6.71% of operating income in the same period.
Enrich product categories and improve the company's core competitiveness
With the continuous and rapid development of China's industry, the vigorous promotion of energy-saving and consumption-reducing technologies, and the continuous improvement of environmental protection requirements, the industrial gas market will continue to expand, which will also bring more room for growth in molecular sieve adsorbents.
According to the statistics of the international consulting company TechNavio, the global market molecular sieve adsorbent market capacity will grow to US$2.010 billion by 2023, which is a steady growth trend compared with a compound growth rate of 6.08% in 2018.
Statistics from the Gas Separation Equipment Branch of the China General Machinery Association show that in 2017, 2018, and 2019, LYJL's market share in the domestic adsorption molecular sieve field was 15.74%, 16.92%, and 18.38%, ranking first in China for three consecutive years. .
Regarding how to improve the company`s competitiveness, Li Yidan said that at present, while consolidating its advantages in traditional fields such as oxygen production, hydrogen production, and adsorption drying, the company is actively pursuing energy and chemical fields such as hydrogen purification, coal-to-ethanol, and coal-to-propylene; steel; Plant flue sintering tail gas denitration, blast furnace gas/coke oven gas desulfurization, comprehensive utilization of industrial tail gas resources, and diesel vehicle tail gas denitration and other environmental treatment fields; nuclear waste water treatment, saline soil improvement and other ecological environment restoration fields; mixed sugar separation, inorganic antibacterial Expansion of biomedicine fields such as pharmaceuticals. Enrich the company's product categories, broaden the company's business coverage, and improve the company's core competitiveness.
LYJL continues to increase investment in research and development, and expands the application of special molecular sieve catalysts such as coal-to-ethanol, coal-to-propylene, steel mill flue exhaust gas and diesel vehicle exhaust gas denitration. As the market size of molecular sieve catalysts is more than three times that of adsorbents, The company's extension from the adsorption field to the catalysis field is expected to open up more market space in the future.
"As one of the leaders in the field of molecular sieves in China, LYJL ranks first in market share. Many of the company`s products fill the gaps in the domestic market, realize import substitution, and have strong market competitiveness. As the company’s raised investment projects are put into production, production capacity The release of the company's performance can be expected." He Zhongfeng said.