ZANYU TECHNOLOGY(002637)2023-07-04 09:12Company Overview - Zanyu Technology Group Co., Ltd. is a national high-tech enterprise specializing in the research, development, and manufacturing of surfactants and fat chemical products, as well as OEM/ODM for personal care products [1] - The company was established in 2000 and listed on the Shenzhen Stock Exchange in 2011, with production bases in multiple locations including Hangzhou, Jiaxing, Meishan, Hebi, Jiangmen, and Jakarta [1] - Annual production capacity includes 1.1 million tons of sulfonated surfactants and 1 million tons of fat chemicals, holding over one-third market share in both categories [1] Financial Performance - In 2022, the company faced significant challenges due to a drastic drop in raw material prices, leading to a substantial decline in performance and resulting in losses [2] - The company maintains a normal inventory net position of 1-2 months, with low inventory levels ranging from 50,000 to 100,000 tons [2] Product and Production - Main products include anionic surfactants such as AES, LAS, and AOS, as well as fat chemicals like stearic acid, fatty acids, and oleic acid [2] - Production processes involve sulfonation and amidation for surfactants, and hydrogenation, hydrolysis, esterification, and distillation for fat chemical products [2] Risk Management - The company employs several strategies to mitigate raw material price volatility, including enhanced inventory management, procurement management, and hedging practices [2] - Long-term supply agreements and OEM processing models are utilized to reduce the impact of price fluctuations on product profitability [2] OEM Business Development - The company has established a large-scale OEM business, with production capacity including a 100,000-ton liquid detergent line in Zhenjiang and a 200,000-ton laundry powder line in Hebi [3] - The company aims to replace smaller, scattered OEM factories with a more stable and technologically advanced production facility [3] Competitive Advantages - Zanyu Technology leverages its strong R&D capabilities inherited from its origins as a research institute, maintaining a leading position in technology innovation and industrialization [3] - The company has established a nationwide production base layout, ensuring stable partnerships with upstream suppliers and downstream customers [3] Future Strategy - The company plans to focus on strengthening its core business in surfactants and fat chemicals while expanding into the daily chemical consumer goods sector (OEM/ODM) to enhance customer loyalty and market share [4]