NCIC(SZ:002246)2024-11-21 13:08Group 1: Company Overview - Northern Chemical Industry Co., Ltd. (North Chemical) was listed on the Shenzhen Stock Exchange in June 2008 and operates in three main sectors: cellulose and its derivatives, special industrial pumps, and chemical protection and environmental products [1][2]. - The company's nitrocellulose products are primarily used in the coatings and inks industry, while special industrial pumps are designed for corrosive and wear-resistant applications in specific conditions such as desulfurization and denitrification [2]. Group 2: Production Capacity and Operations - The nitrocellulose production line is located in Luzhou, with a capacity of 30,000 tons per year following the shutdown of the Xi'an production line due to safety, cost, and development constraints [2][3]. - The company is currently upgrading the Luzhou production line with automation and is evaluating capacity layout in line with the 14th Five-Year Plan [3]. Group 3: Market Demand and Financial Performance - The demand for nitrocellulose products in the downstream market, particularly in coatings and inks, remains stable [3]. - The company's three main business sectors have experienced a decrease in profits due to structural product impacts, but the nitrocellulose sector is expected to see profit growth in 2024, while the special industrial pumps sector remains stable [3]. Group 4: Financial Health and Assets - The company does not have long-term loans and maintains sufficient cash reserves [3]. - The intangible assets on the company's balance sheet, amounting to over 200 million, primarily consist of land and patents [3].