FU-AN(603315)2024-11-21 08:43Company Overview - Liaoning Fuaan Heavy Industry Co., Ltd. was established in 2004 and listed on the Shanghai Stock Exchange in 2015 under the stock code 603315 [1] - The company operates in two main sectors: equipment manufacturing and environmental governance, becoming a diversified enterprise involved in equipment manufacturing, energy environmental services, and new energy materials [1] Equipment Manufacturing Sector - The equipment manufacturing segment primarily produces large castings for major technical equipment, including thermal power equipment castings, hydropower equipment castings, and rail transit castings [1] - Major clients include world-renowned companies, with a focus on forming long-term stable partnerships [1] Environmental Governance Sector - The environmental governance segment is led by the subsidiary Liaoning Metallurgical Design Institute, focusing on flue gas governance engineering services and energy management engineering services [1] - Services include flue gas governance for industries such as steel, municipal heating, and waste incineration, covering areas like desulfurization, denitrification, and dust removal [1] New Energy Initiatives - The company has established a joint venture with Betterray New Materials Group to produce lithium battery anode materials, with an annual production capacity of 100,000 tons [2][3] - The joint venture has started generating profits in 2023 and is performing well [3] Research and Development - Recent R&D achievements include upgrades to combustion chambers and the development of cobalt-boron steel (CB2) for high-pressure cylinders, with the first set delivered in April 2024 [2] - Ongoing projects include the development of large nuclear power outer cylinders and key technologies for pumped storage power station turbines [2] Market Position and Challenges - The company faces significant entry barriers in the casting industry due to stringent supplier qualification processes required by major clients, which can take approximately two and a half years [2] - The company maintains a high level of customer retention, making it difficult for new entrants to gain market access [2] Future Development Plans - The company plans to continue expanding its equipment manufacturing and environmental governance sectors, focusing on key technologies for pumped storage and nuclear power components [4] - The subsidiary will also target the market for ultra-low emissions upgrades in large steel enterprises and other industries [4] Commitment to Investors - The company aims to enhance quality and efficiency to meet development needs and provide returns to investors [5]