QIFENG NEW MATERIAL(002521)2022-12-05 06:01Group 1: Company Overview - Qifeng New Materials Co., Ltd. specializes in decorative base paper, surface wear-resistant paper, and non-woven wallpaper base paper, with over 600 varieties. The production and sales of decorative base paper and surface wear-resistant paper rank first in the world [3][4]. - The company’s products are primarily used in the processing of engineered wood products, enhancing resource utilization and aligning with sustainable development policies [3]. Group 2: Production Capacity - The company has a total production capacity of approximately 350,000 tons, with an expected production of 370,000 tons in 2017. A new project is anticipated to add 50,000 tons of printable decorative paper by August-September 2017 [4][5]. Group 3: Environmental and Energy Efficiency - Unlike traditional paper manufacturing, Qifeng's production uses bleached wood pulp, significantly reducing pollution. The company has been recognized for its technological innovation and environmental protection efforts [4]. - Investments in wastewater treatment systems and ultra-low emission standards for coal-fired power have been made to enhance environmental protection and resource utilization [4]. Group 4: Raw Material Price Trends - The main raw materials are wood pulp and titanium dioxide, with approximately 300 kg of titanium dioxide and 700 kg of wood pulp required per ton of decorative paper. The price of titanium dioxide increased from 9,000 RMB/ton in January 2016 to 15,000-16,000 RMB/ton by December 2016, impacting production costs [4][5]. Group 5: Export and Market Strategy - Currently, over 95% of the company’s products are sold domestically, with less than 5% exported. Plans to enhance export capabilities are in place as production capacity and product quality improve [5]. - The company has strategically lowered product prices in early 2016 to increase market share amid heightened competition, followed by price increases of 1,600 RMB/ton in November and December 2016, and an additional 1,000 RMB/ton in February 2017 [5][6]. Group 6: Research and Development - Qifeng places significant emphasis on product improvement and new product development, with non-woven wallpaper contributing approximately 30,000 tons in production and sales in 2016 [5]. - The company is also developing aramid paper, with two patents obtained in 2010, although this project is still in the research phase and is not expected to yield immediate financial results [5]. Group 7: Financial Performance - The company anticipates a 40% decline in net profit for the year 2016 due to economic downturns, intensified competition, and rising titanium dioxide prices [6].