Danhua technology has disclosed the relevant risks emphatically: first, the companys daily operation has not changed significantly, but due to the external impact of the price drop of ethylene glycol, the company will have operational losses in 2019 and the first three quarters of 2020, and the companys own profitability is under great pressure.
Secondly, the concept of market rumors and hot spots. In recent years, the company has carried out some research and development work in the field of degradable plastic polyglycolic acid (PGA) by using coal to ethylene glycol plant. A pilot plant with an annual output of 3000 tons of polyglycolic acid has been built. The plant has been put into trial operation for many times, and can produce PGA particles. At the same time, the company is also actively engaged in the modification and trial production of other degradable plastics. In the first 11 months of this year, the companys trial production of degradable plastic products sales of about 6 million yuan, accounting for a small proportion of the companys operating revenue.
Degradable plastics is a comprehensive, high-tech and high investment industry. There is still great uncertainty whether the companys PGA project and downstream applications can be industrialized in the future. Danhua technology emphasizes.
At the same time, Danhua technology also verified other relevant situations: after self inspection, the companys production and operation situation is normal, the market environment or industry policy has not been adjusted significantly, the production cost and sales situation have not fluctuated significantly, the internal production and operation order is normal, no major contract has been signed or negotiated in recent period, and no new project has been invested. Moreover, according to the companys letter, Danhua group, the controlling shareholder, clearly stated that there were no relevant major issues between Danhua group and its controller.
Recently, there has been a sudden upsurge in the market for the concept stocks of degradable plastics. On November 30, the Ministry of Commerce issued a report on the use and recycling of disposable plastic products in the commercial field (for Trial Implementation), encouraging suppliers of environmentally friendly alternative products to report on the production and sales of degradable plastic raw materials, degradable plastic products and other environmental protection alternative products in accordance with the provisions of the measures.
In fact, since the beginning of the year, documents on the control of plastic pollution have been published intensively. At present, nearly 30 provinces and cities have issued plastic restriction order.
Uncertain release of industrial capacity
By July this year, nine departments including the national development and Reform Commission (NDRC) and other nine departments issued the opinions on further strengthening plastic pollution control to further implement territorial management responsibilities.
In August, Hebei issued the implementation plan on Further Strengthening the control of plastic pollution. By the end of 2020, Shijiazhuang City, Chengde City and other places will prohibit the use of non degradable plastic bags. In the same month, Jiangsu issued the implementation opinions on Further Strengthening the control of plastic pollution, which made it clear that by 2022, the consumption of disposable plastic products in the whole province would be significantly reduced, and the substitute products would be promoted; in December, Hainan Province officially banned disposable non degradable plastic bags, plastic tableware and other disposable non degradable plastic products.
In this regard, Tianfeng securities issued the latest research report that at present, China has established a relatively perfect plastic ban and plastic policy system, and local provinces and cities represented by Hainan Province have begun to implement plastic and plastic ban measures. Policy + Standard + implementation measures. The agency is optimistic that the national goal of banning and limiting plastics will be achieved on schedule, and the degradable plastics industry will usher in a rapid development opportunity. Guoxin Securities has estimated in previous research reports that there is a huge demand space for biodegradable plastics in China, with a total potential demand space of 10.17 million tons in the four key application fields of disposable tableware, disposable plastic bags, agricultural film and plastic film for packaging. The permeability of biodegradable plastics is generally below 3% in the world, and only 0.62% in China. At the same time, Guoxin Securities also pointed out: Although there are many domestic plans for the production capacity of degradable plastics, there is not much real capacity release, and there is uncertainty in large capacity release in the future. Source: Securities Times editor in charge: Yang Bin_ NF4368
At present, the local governments in Hainan Province have established a new system of ban on plastic industry. Policy + Standard + implementation measures. The agency is optimistic that the national goal of banning and limiting plastics will be achieved on schedule, and the degradable plastics industry will usher in a rapid development opportunity.
Guoxin Securities has estimated in previous research reports that there is a huge demand space for biodegradable plastics in China, with a total potential demand space of 10.17 million tons in the four key application fields of disposable tableware, disposable plastic bags, agricultural film and plastic film for packaging. The permeability of biodegradable plastics is generally below 3% in the world, and only 0.62% in China.