On August 25, Global New Materials International (6616.HK) announced its interim results for 2023. In the first half of the year, the company's revenue was 464 million yuan and its gross profit was 225 million yuan. The gross profit margin was 48.4%, a slight decrease of 2.8 percentage points from the same period in 2022. The net profit was 94.7 million yuan, a decrease of 14.5% compared with the same period in 2022, mainly due to the increase in expenses related to mergers and acquisitions and research and development expenses in the first half of the year. On the whole, the overall performance of the company is stable and sustainable.
The data comes from the international financial report of Global New Materials
Continue to focus on R&D and innovation to effectively enhance core competitiveness
Global Advanced Materials International is a leading manufacturer of synthetic mica-based pearlescent materials in China. The company has been deeply involved in the pearlescent pigment industry for more than ten years, and is committed to the research and development of synthetic mica materials. Through intensive patent layout, it has built a strong technical barrier on high-quality synthetic mica, and its technology research and development capabilities are at the leading level in the global industry. In the first half of 2023, Global New Materials International will continue to increase investment in research and development, focusing on research and development in three major directions: new pearlescent pigment products, functional mica fillers, and new energy materials. Through active R&D investment and technological innovation, the company has continuously innovated and made breakthroughs in five aspects: new substrates, new products, new processes, new equipment, and new applications. In the first half of the year, the company's R&D investment exceeded 24.38 million yuan, an increase of about 3% over the same period in 2022, accounting for 5.25% of revenue.
The data comes from the international financial report of Global New Materials
Global Advanced Materials International's continuous high proportion of research and development investment, on the one hand, helps the company to maintain its leading position in technology for a long time, and through the use of the latest production technology and innovative pearlescent materials, it can better meet the increasingly diverse needs of customers, and in the industry in absolute leadership. On the other hand, it helps to promote the company to develop diversified product lines, continuously introduce new and competitive pearlescent material products, and can effectively reduce the market risk caused by over-reliance on certain specific products, so as to maintain long-term The company's core competitive advantage in the pearlescent material market.
In the first half of 2023, Global Advanced Materials International successfully developed a variety of new pearlescent pigment products, and the product categories continued to expand. 16 new natural mica-based pearlescent pigment products, 37 new synthetic mica-based pearlescent pigment products and 3 new pearlescent pigment products were launched. A new glass flake based pearlescent pigment product. Among them, at the PCHi 2023 industry annual conference in February, the company brought 52 cosmetic-grade Pearlescent pigment products were unveiled at the exhibition; in March, the company focused on exhibiting high-performance pearlescent pigment products such as water-based coating series, SF powder coating professional series, and weather-resistant coating series at the ECS 2023 European Coatings Exhibition. As of June 30, 2023, the company has provided 1032 kinds of pearlescent pigment products, including 560 kinds of natural mica-based, 399 kinds of synthetic mica-based, 52 kinds of glass flake-based, and 21 kinds of silica-based. The sales revenue of pearlescent pigment products also increased from 374 million yuan in the first half of 2022 to 422 million yuan in the first half of 2023, a year-on-year increase of 12.8%. It is worth mentioning that in the first half of 2023, the revenue of mica functional fillers exceeded 39 million, accounting for a rapid increase from 2.1% in the same period in 2022 to 8.4%. Mica can be used as a functional filler. Because of its special physical, chemical and structural properties such as heat resistance, fire resistance, and insulation, it plays an important role in various industrial fields. The use of mica materials can greatly improve the quality of materials and materials. Product performance, stability and durability. In the future, the mica functional filler segment is expected to become the second growth pole of the company's revenue.
The data comes from the international financial report of Global New Materials
Seize the opportunities in the global market, endogenous and epitaxy
In recent years, the application and demand of global pearlescent materials have shown a trend of rapid growth, which has also driven the rapid development of pearlescent material manufacturers. In 2022, the global pearlescent pigment market has grown rapidly to 21.62 billion yuan, with an average annual compound growth rate of 18.2% from 2016 to 2021; among them, the cosmetic grade pearlescent material market has grown rapidly from 2016 to 2020, with an annual average The compound annual growth rate is 19.5%, and it is expected to reach a compound annual growth rate of 32.8% from 2021 to 2025. According to Euromonitor's forecast, the scale of China's high-end color cosmetics market is expected to reach 111.3 billion yuan in 2028. In addition, the global automotive-grade pearlescent material market is growing faster. According to Frost & Sullivan's forecast, the compound annual growth rate of the global automotive-grade pearlescent pigment market is expected to reach as high as 47.1% from 2021 to 2025. As a leading enterprise in the subdivision of pearlescent pigments, Global Advanced Materials International fully seizes this global market opportunity, utilizes its own world-leading technology research and development capabilities in the industry, continues to expand production capacity, and steadily promotes the construction of the second phase of production plants . In the first half of the year, the first phase of the second phase of production plant has been completed and put into trial production. In addition, the company further upgrades and optimizes sales channels, actively optimizes product structure, and maintains a steady development by focusing on mid-to-high-end pearlescent pigments. In recent years, the company has launched a series of synthetic mica-based pearlescent pigment products with bright colors and unique luster, which are widely used in lipstick, eye shadow, foundation, liquid eyeliner, eyebrow pencil, nail polish, hair cream, body cream, hair spray, etc. Cosmetics, in addition, the company has also entered the supply chain of many domestic automobile companies.
In order to further enhance its competitiveness in the context of the globalized market, Global Advanced Materials International adopts an active merger and acquisition strategy to enhance the company's core competitive position in the global high-end pearlescent material product field. In the first half of this year, the company acquired CQV, a leader in pearlescent materials in South Korea, which not only marked a milestone and key step for Global Advanced Materials International in its global strategic layout, but also demonstrated that the company wanted to further expand overseas business and strengthen technical cooperation. aspect of determination. As a world-leading high-end pearlescent pigment manufacturer, CQV has been deeply involved in the pearlescent pigment industry for more than 20 years. Its core R&D technicians have more than 35 years of experience in the development and commercialization of pearlescent and metal surface performance materials. Technical strength; CQV has built three world-leading smart factories and created a product matrix of more than 800 models. It is the world's leading supplier of high-end pearlescent pigments in the fields of automobiles, cosmetics, and industry. Its sales network covers 150 countries around the world. Many countries and regions, especially in the sales channels of high-end products have significant advantages. It is particularly worth mentioning that, in terms of the application of automotive-grade high-end pearlescent material products, CQV is currently the only company in the world other than Merck that can achieve mass production of automotive-grade alumina substrate products. The acquisition of South Korea's CQV can not only enhance the technology research and development strength of Global New Materials International, especially the research on high-end product applications can complement and enhance the professionalism of Global New Materials International in high-end product research. Moreover, Global New Materials International has solved the raw material supply problem of CQV by continuously improving the production capacity of synthetic mica. Both parties have taken advantage of the supply chain to form an industrial chain advantage. The strong combination of China and South Korea's leading pearlescent materials will enable the two parties to provide stronger advantages in expanding international market share and enriching product portfolios in the future, comprehensively enhancing the company's competitive advantage in the global market and further widening the gap with competitors. With the rapid growth of global high-end pearlescent pigment markets such as cosmetics and automobiles, Global New Materials International will further enhance its profitability and international reputation in the field of pearlescent pigments, and broaden the moat margin of global competition.
In the future, Global Advanced Materials International will continue to adhere to the parallel strategic measures of "inner source development and extensional expansion", fully rely on its own resources and capabilities, develop new products and technologies through continuous R&D investment and innovation capabilities, and improve existing The quality and performance of products can meet the ever-changing market and customer needs; make full use of the capital market platform to carry out cross-border M&A transactions in a timely manner, so that the company can quickly obtain new technologies, market channels and customer resources, and achieve rapid growth.