PYHB(300664)2024-11-29 11:34Group 1: Company Overview - Pengyao Environmental Protection Co., Ltd. was established in 1984 and is recognized as a pioneer in the environmental protection industry in China [4] - The company has a comprehensive business model that includes design research and development, equipment manufacturing, engineering contracting, project investment, and operation [4] Group 2: Biodiesel Project Introduction - The company signed a strategic cooperation agreement with the government of Panjin City on March 3, 2023, to invest CNY 1.2 billion in a 200,000 tons/year hydrogenation facility upgrade and a 100,000 tons/year biomass liquid fuel project [3] - The project utilizes new boiling bed hydrogenation technology, using waste biological oils as raw materials [3] Group 3: Production and Financial Metrics - The production line for SAF (Sustainable Aviation Fuel) is expected to start trial operations on August 21, 2024, with an overall product yield of 82%, including 55% from raw materials, 14% from HVO, and 13% from bio-light oil [3] - The processing cost of raw materials ranges from CNY 1,500 to CNY 3,000 per ton [4] Group 4: Market and Sales Strategy - The primary sales channel is directed towards the European market, with orders dependent on market prices [4] - The company has not yet begun the airworthiness certification process but plans to initiate it soon [4] Group 5: Competitive Advantages - The company operates under a light asset model, which reduces fixed asset depreciation costs compared to competitors [4] - The processing location in Panjin, Liaoning, benefits from lower labor costs, enhancing profit margins [4] Group 6: Raw Material Sourcing and Market Trends - UCO (Used Cooking Oil) prices have decreased from approximately USD 900 per ton to around USD 800 due to the cancellation of export tax rebates, which is favorable for cost reduction [4] - The Northeast region can fully meet the company's procurement needs of 100,000 tons, with supply channels distributed across Northeast China, Inner Mongolia, Hebei, and Tianjin [4]