BYT(BJ:836675)2024-09-19 10:05Group 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 members guarantee the authenticity and completeness of the announcement content, assuming legal responsibility for any inaccuracies [2]. Group 2: Market Trends and Projections - The "14th Five-Year Plan" emphasizes self-sufficiency in oil and gas, with unconventional oil and gas extraction expected to grow significantly, as unconventional natural gas production has surpassed 96 billion cubic meters, accounting for 43% of total natural gas output [3]. - The company anticipates substantial growth in oil and gas extraction due to technological advancements and increasing consumption demands, with no imminent resource depletion [3]. Group 3: Industry Challenges and Product Applications - Increasing depth of shale oil and gas fracturing wells presents challenges for existing technologies and materials, necessitating the use of ceramic proppants over quartz sand in deep wells due to their superior properties [4]. - The company provides proppants for coalbed methane extraction, with usage depending on geological conditions and economic factors [4]. Group 4: Pricing and Sales Dynamics - Proppant prices are influenced by supply-demand dynamics, production costs, and competitive pressures, leading to a non-rational pricing environment [5]. - Sales volume growth in the first half of 2024 is attributed to customer demand, with a positive industry trend reflected in increased usage of proppants in oil and gas fields [5]. Group 5: Financial Performance and Orders - The decline in gross margins is primarily due to lower bidding prices and clients' cost-cutting measures [5]. - The company reports sufficient orders based on its bidding success, with supply aligned to the specific needs of oil and gas field operations [5][6]. Group 6: Strategic Expansion - The establishment of a wholly-owned subsidiary in Xinjiang is part of the company's strategic plan to enhance its proppant product supply chain and improve market competitiveness [6].