Rewrite the situation.
Wen | Fang Liang
Recently, the official website of the Shenzhen Stock Exchange's ChiNext Board shows that Shandong Haike Xinyuan Material Technology Co., Ltd. (hereinafter referred to as Haike Xinyuan), a cosmetics raw material supplier, has been inquired about IPO and has been inquired. It is reported that the company's annual revenue exceeds 1.6 billion yuan, providing raw materials such as propylene glycol and isopropanol for cosmetics companies such as Johnson & Johnson, Polaria and Qiancai.
It is worth mentioning that propylene glycol is a commonly used basic raw material in the cosmetics industry, and the price this year has doubled compared with last year. However, the industry generally adopts imported propylene glycol, can local raw material manufacturers represented by Haike Xinyuan rewrite this situation?
With an annual income of more than 1.6 billion yuan, another cosmetics ingredient COMPANY IPO
According to public information, Haike Xinyuan was established in 2002, mainly engaged in the research and development, production and sales of carbonate series lithium-ion battery electrolyte solvents and high-end propylene glycol, isopropanol and other fine chemicals. Haike Xinyuan quoted data from Gaogong lithium battery that in the lithium battery electrolyte solvent product market, the company's global sales market share in 2020 will be 30%, ranking first.
It is reported that Haike Xinyuan's cooperative customers throughout the chemical, automotive, cosmetics and other fields, the end customers mainly include Tianci Materials, BYD and other well-known lithium-ion battery electrolyte manufacturers, as well as Johnson & Johnson, Wanhua Chemical, Aipu shares, Polaria, Qiancai and other large chemical enterprises at home and abroad.
In recent years, with the vigorous development of the lithium-ion battery materials industry and the fine chemical industry, this has created opportunities for upstream manufacturers of chemical raw materials. In this process, from 2018 to 2020, the operating income of Haike Xinyuan was 1.032 billion yuan, 1.047 billion yuan and 1.66 billion yuan, respectively, an increase of continuous years; the net profit was 59.4229 million yuan, 122 million yuan and 153 million yuan, with stable growth.
▍Cut from Haike Xinyuan prospectus
According to the prospectus, carbonate series products are the category with the largest proportion of Haike Xinyuan's performance, last year, the revenue of this category was 977 million yuan, accounting for 58.82% of the total revenue; in the same period, the revenue of propylene glycol and isopropanol was about 309 million yuan, accounting for 18.61% and 18.59% of revenue, respectively. Among them, propylene glycol revenue decreased by 4.72% year-on-year compared with 2019; isopropanol increased significantly by 781.24% compared with 2019.
Haike Xinyuan said that the surge in isopropanol revenue is the company's isopropanol products can be used as disinfectant, affected by the new crown epidemic in early 2020, so that the market demand and market prices of isopropanol products have increased.
According to the prospectus, carbonate series and propylene glycol products are the main sources of gross profit for the company's main business, and in the period of 2018-2020, the operating gross profit of the above products accounted for 97.25%, 97.58% and 72.24% of the total gross profit of the main business in each year, respectively.
Propylene glycol prices have doubled
According to the Catalogue of Used Raw Materials (2021 Edition) of cosmetics, propylene glycol and isopropanol are cosmetic raw materials. A number of R&D engineers told BlueEye that propylene glycol is a common basic raw material in the cosmetics industry, and the dosage is large, so it is also commonly known as cosmetics "big material". "Propylene glycol is a colorless liquid that is widely used in chemical synthesis, solvents, daily chemicals, pharmaceutical and food industries. In the field of cosmetics, it can usually be used as a moisturizer, softener, solvent, etc., and almost all cosmetics can be used, especially water, milk, cream, mask and other products. Isopropanol is mostly used as a solvent in the cosmetics industry and is not used as frequently as propylene glycol. ”
▍Excerpt from "Catalogue of Used Raw Materials (2021 Edition)"
Wang Yong, general manager of Lishi (Shanghai) Cosmetics Co., Ltd., introduced that propylene glycol is the top three cosmetic raw materials used in its factory, and the annual use of propylene glycol is about 50 tons. "The specific amount of use depends on the products produced in the current year, and we have a large demand for propylene glycol in our mask products." Peng Yuanbao, deputy general manager of Shanghai Youkang Cosmetics Co., Ltd., also said that its factory needs 40-50 tons of propylene glycol a year, "The starting ration of each purchase in the factory is 5 tons." ”
It can be seen that the importance of propylene glycol to the cosmetics industry is self-evident.
It is worth noting that at the beginning of this year, the price of "big materials" for cosmetics based on propylene glycol began to soar, and for a time it also faced a crisis of shortage of goods (see "Comprehensive Price Increase"). "Recently, the price of propylene glycol has fallen slightly, and it is currently about 20 yuan per kilogram. But I heard that it would rise after that, so I quickly tuned a little. The person in charge of a factory in Shanghai said.
Zhuo Chuang Information market analyst Lu Hui told Blue Eye that as of now, the average ex-factory price of propylene glycol is 16250 yuan / ton, compared with 7300 yuan / ton in the same period last year, an increase of more than 2 times. According to the prospectus, the sales unit price of Haike Xinyuan propylene glycol in 2020 is 8208.30 yuan / ton, which is closer to the price reflected by Zhuo Chuang Information.
It is reported that during the period of 2018-2020, the unit price of Haike Xinyuan propylene glycol was 9897.13 yuan / ton, 8255.20 yuan / ton and 8208.30 yuan / ton, respectively.
Or promote the import substitution of pharmaceutical grade propylene glycol in China
However, a number of raw material suppliers and factory leaders have told Blueeye that most of the propylene glycol it buys is imported products or produced by China Overseas Shell (joint venture), while the propylene glycol products of local manufacturers are used less. Why?
With the disclosure of Haike Xinyuan's prospectus, this reason has also surfaced.
The prospectus shows that at present, in the Chinese market, there are high technical barriers to high-end propylene glycol, relying on a large number of imports; low-end industrial-grade products are overproduced, the competition between the sources of goods in the field is relatively fierce, and it is in a state of large exports. In 2020, the total import volume of propylene glycol in China is about 90,000 tons, mainly for pharmaceutical grade propylene glycol and high-quality industrial grade propylene glycol. Import suppliers are mainly International giants such as Dow of Thailand, SKC of South Korea, Sadara of Saudi Arabia, Leander of the United States, and Shell of Singapore.
It is worth mentioning that due to the high dependence of propylene glycol on raw materials, the domestic propylene glycol production equipment is mainly concentrated in the Shandong region where the main raw material propylene oxide is enriched, with a total of 6 enterprises with a total production capacity of 277,400 tons / year, accounting for 62% of the national production capacity. This means that the annual production capacity of propylene glycol in China is about 447,400 tons.
According to the prospectus, the production capacity of Haike Xinyuan in 2020 is 31,700 tons, which accounts for about 7.09% of the total production capacity of the country. The annual production capacity of Zhonghai Shell in Huizhou, Guangdong Province, is 60,000 tons, accounting for 14% of the total national production capacity. It can be seen that the annual production capacity of China Overseas Shell propylene glycol is about 2 times that of Haike Xinyuan.
Coincidentally, Shandong is also a major province producing hyaluronic acid. The data shows that China's total sales of hyaluronic acid in 2019 have accounted for 81% of the total global sales, and the top 5 suppliers, including Bloomage Bio, are local enterprises from Shandong, which account for 75% of global hyaluronic acid sales. Among them, Ava Bio was listed on the New Third Board in 2015, and Bloomage Bio was listed on the Science and Technology Innovation Board in November 2019.
According to Zhuo Chuang information, at present, the domestic propylene glycol is mainly industrial grade, and only the propylene glycol of China Overseas Shell and Haike Xinyuan in domestic chemical enterprises has been approved and filed by the National Drug Evaluation Center, and pharmaceutical grade propylene glycol is provided. Therefore, Haike Xinyuan's products have strong competitiveness in the market and will effectively promote the import substitution of pharmaceutical grade propylene glycol, dipropylene glycol and other products in China. Haike Xinyuan said that the purity of propylene glycol produced by it can reach more than 99.5%. In addition, it is not difficult to see from the prospectus that in the past 3 years (2018-2020), the capacity utilization rate of Haike Xinyuan propylene glycol has exceeded 100%, 108.12%, 116.55% and 111.87% respectively.
In addition, a cosmetics raw material manufacturer in the industry also revealed to Blue Eye, "Recently, Haike Xinyuan has just developed the process of butanediol. He introduced that at present, the suppliers of butanediol are mostly foreign raw material enterprises. According to R&D engineers, butylene glycol is also a common raw material in the cosmetics industry, mainly playing a moisturizing role and often added to skin care products. It can be seen that Haike Xinyuan may further expand its layout in cosmetic raw materials.
Haike Xinyuan said that the company's financing channels are relatively single, insufficient funds have become the company's upgrading of technical level, expansion of business bottlenecks, the need to urgently open up new financing channels to solve the company's business development bottleneck, increase investment in research and development, production and other aspects, to further improve the company's core competitiveness, the fundraising fund of 1.512 billion yuan.
In summary, it can be seen that if Haike Xinyuan is successfully listed, it will be conducive to further expanding the production capacity of high-end propylene glycol in China, and even breaking the technical barriers in this field, which also means that in the future cosmetic raw material market, Haike Xinyuan is also expected to have more discourse power.