Sinocat(SH:688737)2022-11-17 14:40Group 1: Company Performance - In Q1 2022, the company's sales revenue for natural gas vehicles was CNY 26.21 million, down 22.64% quarter-on-quarter; for diesel vehicles, it was CNY 18.63 million, down 84.75%; and for gasoline vehicles, it was CNY 25.85 million, up 5.44% [2] - The decline in sales was attributed to weakened terminal demand in the commercial vehicle market due to the pandemic and economic downturn, leading to a low demand for commercial vehicles [2] Group 2: Market Opportunities - The diesel vehicle market is estimated to be worth CNY 40 billion, with the non-road National IV market capacity around CNY 10 billion. The company has secured development opportunities with 15 major domestic manufacturers and has received production announcements for 8 models [3] - The company aims to capture a significant market share in the new non-road National IV market, leveraging its technological expertise in diesel engine after-treatment [3] Group 3: R&D and Production Capacity - The company is advancing in hydrogen fuel cell catalysts, with plans to achieve kilogram-level production capacity soon. It has completed sample deliveries to several domestic and international manufacturers [3] - The company is also developing solid oxide fuel cells, with a pilot production line expected to be completed by the end of 2022 [3] Group 4: Expansion Projects - The company has two capacity expansion projects, with the Chengdu new catalyst manufacturing park expected to start installation and debugging in June 2022 and reach operational status by November 2022 [4] - Once fully operational, the company will have an annual production capacity of 550,000 diesel vehicle catalysts, 1 million gasoline vehicle catalysts, and 100,000 natural gas catalysts [4] Group 5: Response to New Energy Development - In response to the rapid development of new energy vehicles, the company is expanding its product lines to include hybrid and fuel cell vehicles, with a focus on increasing market share in these segments [5] - The company is collaborating with universities to develop solid-state batteries, which are seen as a key technology for achieving carbon neutrality [5][6] Group 6: Future Directions - The company plans to establish a "Storage and Power Battery Division" to accelerate the industrialization of its battery products, focusing on the growing energy storage market [7] - The company is leveraging its existing expertise in automotive catalysts to support the development of battery technologies, ensuring a synergistic approach in its operations [6][7]