BYT(BJ:836675)2024-09-19 08:42Group 1: Company Overview and Investor Relations - The company, Panzhihua Bingyang Technology Co., Ltd., held an investor relations activity on September 18, 2024, via the Jinmen Finance APP, attended by various securities firms and investment funds [2][3]. - The board of directors guarantees the authenticity, accuracy, and completeness of the announcement content [2]. Group 2: Market Trends and Projections - The unconventional oil and gas extraction volume has been increasing annually, with unconventional natural gas production exceeding 96 billion cubic meters, accounting for 43% of total natural gas production [3]. - The company anticipates significant growth in oil and gas extraction due to advancements in extraction technology and rising consumer demand [3]. Group 3: Technical Challenges and Product Applications - Increasing depth of shale oil and gas fracturing wells presents challenges for existing fracturing technologies and materials [4]. - The company’s fracturing proppant products include ceramic proppants and quartz sand, with ceramic proppants being more suitable for deep well applications due to their superior properties [4]. Group 4: Product Demand and Sales Performance - The increase in sales volume in the first half of 2024 is attributed to meeting customer demand, with a positive overall trend in the proppant industry [5]. - The company has sufficient orders on hand, with supply based on actual customer usage [5][6]. Group 5: Pricing and Profitability - The price of fracturing proppants is influenced by supply-demand dynamics, production costs, and competitive market conditions [5]. - The decline in gross profit margins is primarily due to lower bidding prices and customer cost-cutting measures [5]. Group 6: Strategic Development - The establishment of a wholly-owned subsidiary in Xinjiang is part of the company's strategic plan to enhance its product supply chain and improve market competitiveness [6].