NCIC(SZ:002246)2022-12-03 10:18Group 1: Product Applications and Market Trends - Nitrocellulose products are widely used in national defense, coatings, inks, and celluloid manufacturing [1] - The nitrocellulose industry faces overcapacity, while the ink sector shows a growth trend and the coatings sector is slightly declining [2] - The company has strategically established liquid nitrocellulose production lines in East and South China, adapting to market shifts from solid to liquid products [2] Group 2: Market Position and Pricing Power - The company holds a high market share in nitrocellulose products, granting it significant pricing power and a responsibility to lead sustainable industry development [2] - Current overcapacity in the nitrocellulose industry necessitates careful pricing to maintain international competitiveness [2] Group 3: Future Development Plans - The company is developing three main business sectors: cellulose and its derivatives, activated carbon-based environmental equipment, and special industrial pumps [3] - Current nitrocellulose production capacity stands at 60,000 tons, with plans to focus on high-end inks and fireworks cotton [3] Group 4: Project Progress and Challenges - The technical renovation of the dual-use gas mask production line has faced delays due to heightened environmental standards [3] - The activated carbon expansion project has not yet commenced due to unfavorable changes in resource availability and increased production costs [3] Group 5: Financial Performance and Sustainability - The significant revenue and profit growth in 2018 is expected to be sustainable due to stable demand and the gradual release of project benefits [4] - The pump manufacturing sector has experienced a decline in volume and price due to market saturation, but new opportunities are anticipated in mining, metallurgy, and overseas markets [4]