Chengdu Guibao Science and Technology Co., Ltd (GUIBAO) released its semi-annual report for 2023 on August 12th. According to the report, the first half of 2023 witnessed a significant decline in prices of major raw materials, leading to a decrease in product prices. However, there was a remarkable recovery in the gross profit margin of the products compared to that of the previous year. The company achieved a revenue of RMB 1.194 billion, down 13.60% YoY, but saw an increase of 20.34% in sales volume on yearly basis. The net profit attributable to shareholders reached RMB 132 million, showing a substantial growth rate of 28.68%. With the non-recurring gains and losses deducted, the net profit stood at RMB 131 million with an impressive year-on-year increase of 40.73%.
Main business
GUIBAO is primarily involved in the R&D, production and sales of new materials such as silicone sealants, operating within the silicone industry. It mostly produces silicone sealants and silane coupling agents.
Projects in progress
Since 2023, several ongoing projects of GUIBAO have been on smoothly.
The fund-raising project for the intelligent manufacturing of high-end sealants, with a capacity of 100 kt/a, is progressing smoothly. In H1 2023, an additional production capacity of 30 kt/a for silicone sealants has been added, resulting in a total production capacity of 210 kt/a for high-end silicone materials. This significant increase in capacity provides strong support for the company's performance growth.
The expansion project of the National Enterprise Technology Center has been successfully implemented. In the first half of this year, a new laboratory spanning 4000 square meters through technological transformation was added. Additionally, over 100 sets of experimental and testing equipment and instruments were purchased, including twin screw extruders, chromatographs, dynamic and static fatigue testers, coating machines, vulcanization beds, SMT machines, rheometers, etc., further bolstering our research and development innovation capabilities.
GBXF Silicones Co., Ltd, as the subsidiary of Chengdu Guibao Science and Technology Co., LTd, has got the progressing technical transformation project of 8,500 t/a silane coupling agent, according to its plan. In H2 2023, the production capacity of 6,000 tons per year has already been completed, and it is expected that all projects will be finished and put into production by the end of 2023.
As another wholly-owned subsidiary of GUIBAO, Sibao (Meishan) New Energy Materials Co., Ltd has made significant progress in the 50 kt/a lithium battery silicon carbon negative electrode material and special adhesive project. All main projects have been successfully completed in the first half of this year, with infrastructure expected to be finished by Q3 and equipment installation scheduled for Q4.
Additionally, to facilitate the implementation of the 50 kt/a silicon carbon negative electrode material and special adhesive project for lithium batteries, the company has invested RMB 30 million in leasing the existing plants of Meishan TALY Technology Co., Ltd., a wholly-owned subsidiary of the company. This investment aims to construct a 1000 ton per annum of silicon carbon negative electrode production line for power batteries, which was completed and put into operation in April this year. The completion of this project not only enables convenient testing and certification of silicon carbon negative electrode materials for power batteries but also lays a solid foundation for the successful execution of the company's ambitious plan to produce 50 kt/a of lithium battery silicon carbon negative electrode materials and special adhesives. Moreover, it will create new opportunities for performance growth within our organization.
Technical advantages
As of June 30th, 2023, GUIBAO has obtained a total of 312 authorized patents, including three invention patents from USA, one from Japan, 157 invention patents from China, and 146 utility model patents. Additionally, the company has played a leading role in formulating 105 international, national, and industry standards. Furthermore, through the identification or evaluation of 33 new product and technology achievements - six of which have reached the international leading level - GUIBAO continues to demonstrate its commitment to innovation. Lastly, it is worth noting that the testing center boasts an impressive recognition from CNAS with regards to its compliance with 112 parameters.
