A new milestone in the industry, the siliconized white carbon black project is expected to start production next year

Quecheng revealed at the previous first-half performance briefing held that China's tire industry has ushered in a wave of gradual recovery, especially the booming production and sales of head tire companies, which has effectively driven the demand for silica, the company's main product. demand. At the same time, the steady increase in the production capacity of Thai subsidiaries has also made a direct contribution to the company's production growth.

At the meeting, some investors raised questions. Although sales increased in the first half of the year, sales, net profit and average selling price all showed a slight downward trend. What are the reasons? It is understood that Wang Jin, secretary of the company's board of directors and chief financial officer, said that from the end of 2022 to August 2023, the company's two sodium silicate raw material production lines have entered the overhaul stage one after another, and the decline in output has led to higher production costs for self-produced sodium silicate, which in turn has an adverse impact on the production cost of product silica. In addition, due to the impact of China's economic environment, the prices of some varieties of downstream clients in China have been lowered, resulting in a decline in the average selling price. Wang Jin added: "In addition to the above reasons, the demand for bulk commodities has declined and prices have been sluggish. The company's supporting businesses such as sulfuric acid and steam have formed a relatively big drag. The operating income of such businesses has dropped significantly, and the gross profit contributed by external sales has dropped by more than 26 million yuan year-on-year." Regarding the layout and incubation of silica microspheres mentioned in the company's first semi-annual report, Que Weidong, chairman and general manager of the company, said that silica microspheres are widely used, and the incubated microsphere projects have achieved some phased results in different application fields. It is expected that by the first half of 2024, some application products will be officially launched on the market. In addition, Que Weidong revealed that the company is currently in progress with an IPO fundraising project, and the silica project with an annual output of 75,000 tons is expected to be completed by the end of 2024, laying a solid foundation for the company's future development.