JiuWu Hi-Tech(SZ:300631)2022-12-03 09:50Group 1: Project Progress and Financials - The company is currently in the design and procurement phase for the Wenkang Salt Lake project, with equipment expected to be delivered this year, although actual delivery may be uncertain due to site infrastructure progress [3][4] - The profit margin for the Wenkang Salt Lake project is still uncertain as the project is in the detailed design and procurement stage, and the complete lithium extraction cost cannot be calculated at this time [4][5] - The company’s accounts receivable are primarily concentrated within three years, indicating a good quality of clients, mostly industrial enterprises [5][6] Group 2: Technology and Market Position - The company uses organic membranes sourced externally, with the choice of membrane materials depending on project specifics, client needs, and economic factors [5][6] - The company has invested significantly in R&D, resulting in over 100 patents, which enhances its technological barriers and competitive edge in the market [7][8] - The company is actively exploring new application areas beyond lithium extraction from salt lakes, including titanium dioxide, industrial wastewater zero discharge, and flue gas desulfurization [6][7] Group 3: Financial Performance and Challenges - The company has experienced a decline in gross and net profit margins due to increased competition in traditional business areas and a higher proportion of outsourced components in project contracts [6][7] - The cost of membrane technology for industrial water reuse is proportional to the reuse rate, with a treatment cost of approximately 1-2 RMB per ton at a 60%-70% reuse rate [8][9] - The company is considering implementing an equity incentive plan in the future [8][9]