Transform carbon fiber, the future space can be expected

1. Viscose filament leading enterprise, transformation of carbon fiber, future space

1.1 Company Profile

Jilin Chemical Fiber Group was restructured from the original Jilin Chemical Fiber Factory, which was founded in 1960 and put into operation in 1964, and has now developed into the production and sales of chemical fiber. Jilin Chemical Fiber Company (000420) is the holding subsidiary of Jilin Chemical Fiber Group Co., LTD. The company was founded in 1960 and put into operation in August 1964. At present, the company mainly produces and sells chemical fibers, including viscose filament, viscose staple fiber and carbon fiber. Jilin Chemical Fiber Group directly holds 12.94% of the company's equity, its wholly-owned subsidiary holds 2.58% of the company's equity, Jilin City State-owned Capital Development Holding Group directly holds 6.99% of the company's equity, so Jilin City SASAC controls 22.51% of the company's equity in total. At the same time, Jilin Chemical Fiber Group holds 60.1% of Jilin Guoxing carbon fiber.

Jilin City is one of the earliest regions engaged in carbon fiber technology research and development in China, is also the only national carbon fiber high-tech industrialization base identified by the Ministry of Science and Technology, approved by the Ministry of Industry and Information Technology as the national new industrial demonstration base of carbon fiber, has formed "acrylonitrile - acrylonitrile base - carbon filament - downstream products" the most complete carbon fiber industrial chain in China. Carbon fiber filament production capacity, carbon filament production capacity ranked first in the country. Jilin City has 25 carbon fiber production enterprises such as Jilin Chemical Fiber and Jilin Carbon Valley, including 12 enterprises on the plan, and has achieved large-scale production of 4 series of carbon fiber downstream products and more than 10 kinds of end products. During the "14th Five-Year Plan" period, Jilin City gathered force to create "China's carbon Valley", and the production capacity of carbon fiber and carbon silk in large bundles was the first in the world. By 2025, Jilin City's raw silk production capacity is expected to reach 310,000 tons, carbon silk production capacity to reach 100,000 tons, carbon fiber composites and products production capacity to reach 50,000 tons, carbon fiber industry scale to reach 50 billion yuan.

At present, the company's main products include viscose filament, viscose staple fiber and carbon fiber.

1. Viscose filament: Viscose filament, also known as "rayon", is a substitute for natural silk. In recent years, the company has seized the opportunity to expand production capacity and seize the market vacated by enterprises in the industry, making the market share gradually increase. At present, the company's viscose filament production capacity is about 80,000 tons/year, and the global viscose filament total production capacity is about 280,000 tons. China's production capacity accounts for more than 75%. In recent years, viscose filament production capacity and demand are relatively stable, so the price change is relatively stable, but with the upgrading of consumption and industry concentration continues to increase, in the long run, the market prospects are still good.

2. Viscose staple fiber: viscose staple fiber is commonly known as "artificial cotton, rayon or viscose." The company's initial design capacity of viscose staple fiber is 100,000 tons/year, after process optimization and process reengineering, the actual production capacity can reach 120,000 tons/year, although it is not the best in the country, but effectively supplement the company's viscose fiber products, and viscose filament is beneficial to expand the overall sales, has accounted for nearly one-third of the company's total sales.

3. Carbon fiber: Known as the "black gold" in the field of materials, in the industrial field, wind power generation, light weighting of new energy vehicles, aerospace, pressure vessels, hydrogen energy utilization and other key areas, the company currently holds 49% of Jilin Baoxing annual output of large tow carbon fiber 8000 tons, the company's wholly-owned subsidiary Jilin Kemek annual output of small tow carbon fiber 600 tons, At the same time, the company raised funds through the non-public offering to build an annual output of 12,000 tons of carbon fiber composite pultruded plate project, the company is expected to reach the completion of the project, will form an operating income of 1,540 million yuan/year. Guoxing carbon fiber: Jilin Guoxing carbon fiber mainly focuses on the large tow carbon fiber link. On May 8, 2020, it was officially assigned to Jilin Chemical Fiber Group, and the actual controller became Jilin City SASAC. Before Guoxing carbon fiber production line was small, the group upgraded the original carbon fiber production line of 500 tons/year to about 1000 tons/year, and continued to expand production significantly. If the production line planning of 15,000 tons of carbon fiber project is proposed, as of June 2022, Jilin Guoxing carbon fiber production capacity has reached 18,000 tons/year. At the same time, the chemical Fiber Group issued a commitment: within three years from March 18, 2022, the chemical Fiber Group will take measures in line with state-owned assets supervision and securities supervision, including injecting the controlling stake of Guoxing Carbon Fiber into the listed company, to further protect the interests of listed companies and minority shareholders.