As the leader of the refractory industry, it has strong comprehensive strength, and the main company has become the top three in the world. The latest financial report shows that the company's performance continues to maintain stable growth.

On February 27, a performance report was released showing that the company achieved total operating revenue of 4.139 billion yuan in 2019, an increase of 6.46% year-on-year, and realized operating profit of 291 million yuan, an increase of 5.48% year-on-year. .

The company stated that the main reason for the company's business performance in 2019 to achieve stable growth year-on-year is to actively expand the market, effectively control the cost of raw materials, and improve the efficiency of capital use.

The data shows that the service provider specializing in refractory system solutions for high-temperature industries is the leading company in the domestic refractory industry. Its customers cover domestic and foreign steel, cement, glass, non-ferrous metals and other fields. It is currently among the top 100 steel companies in the world. Many provide quality products and perfect services.

At present, the company continues to maintain technological leadership, product leadership and market leadership. At the same time, it accelerates mergers and acquisitions at home and abroad. Through its own mine basic raw material business, it will enter a stage of rapid development, not only for its own use but also to increase the company's profits. Superimposing the application of the company's new coke oven and other technologies, the company is not only a leading enterprise in the country's refractory industry with complete product support, covering steel, building materials, nonferrous metals, petrochemicals and other major high-temperature fields, but also an advantageous enterprise in raw material production.

Founded in 2002, the company has long focused on technological innovation and has a Beijing technology R & D center based on forward-looking research and a dual technology R & D center based on applied research and development, Puyang Technology Center, in addition to 36 offices in China. It also has 8 molecular companies or offices in Ukraine, the United States, Russia, South Korea, India and other countries, with strong R & D strength, global marketing capabilities and a solid market foundation.

At present, the company has been rated as a national high-tech enterprise, with a national recognized enterprise technology center, a post-doctoral scientific research workstation, a national (CNAS) approved high temperature ceramic material test and inspection center, a provincial high temperature ceramic material engineering technology research center, a technical research institute, etc. A research and development platform, through the continuous introduction of new products to meet market demand, and improve existing products to improve product stability and reliability.

As of the end of 2018, it had a total of 232 effective technical patents, including 53 inventions, 176 utility models and 3 appearance patents.

The company's main product refractory material is a consumable material and an important intermediate in the capital construction process. The company's main downstream steel, cement, non-ferrous and other industries have a steady growth in output in 2019. At the same time, infrastructure investment is an exogenous economic growth tool. In order to complete the economic doubling target and the 13th Five-Year Plan, the follow-up infrastructure investment will continue to work hard, and the company's 2020 performance is expected to achieve synchronized growth.

At present, the boom of the refractory industry has rebounded, and the output has increased slightly. The steel industry has further promoted supply-side structural reforms and comprehensively banned "ground bar steel". The overall profitability of the steel industry has continued to improve, the prices of refractory products have risen slightly, and the recovery rate has continued to increase, which has significantly eased the operating pressure of refractory companies.

As the country continues to strengthen environmental remediation, small and medium-sized enterprises in the refractory industry and upstream industries continue to be further discharged, resulting in a serious shortage of most refractory raw materials and refractory products markets. Increased pressure is not small, but at the same time also opened up profitable space, leading enterprises will fully benefit.

According to the financial report, there are two modes of sales for its subsidiaries, one is individual sales (valued according to the number of product sales), and the other is overall contracting (the company contracts the entire or part of the steel production line), which is settled according to the output of steel annually.

In the opinion of industry insiders, overall contracting is conducive to the company's full research of customer needs, the development of products and services with better performance, and the formation of good interaction between upstream and downstream. The overall contract performance is relatively stable in terms of supply cycle, supply quality and follow-up services, and is also the first choice for downstream steel companies.

In 2018, the sales revenue achieved by the overall contracting method was 1.71 billion yuan, a year-on-year increase of 29.44%, accounting for 44.14% of revenue. With the deepening of the supply-side reform of downstream customers and the increase in market concentration, the company will also provide personalized and customized services for steel companies based on the advantages of technology, products and brands. The above-mentioned industry sources pointed out that with the increase in the proportion of the overall contracting model, it will also help the company to increase customer stickiness and increase the company's profit level.

In addition, the development of the raw materials business will also be expected to improve the company's gross profit margin.

Currently, the prices of raw materials in the industry are still high, mainly due to environmental protection, which restricts the exploitation of raw materials. Currently, we have high-purity magnesite in Haicheng Linli, Xinjiang and Tibet. Interest rate level. At the same time, it is no longer constrained by the price of raw materials, and the ability to resist risks has improved. The expansion of the raw materials business will become an important pole for performance improvement.