On November 7, 2023, Majiaxincai New Material Technology (Shanghai) Co., Ltd. (hereinafter referred to as Majiaxincai) was listed on the Shanghai Stock Exchange and successfully landed on the Shanghai Stock Exchange main board. The planned public issuance of no more than 27 million shares will not be less than 25% of the total share capital after the issuance.
As a high-tech enterprise dedicated to the research, development, production and sales of high-performance multi-category coating products, after 20 years of continuous accumulation and exploration, Majia Xincai has become the leading domestic coating supplier in the two major fields of wind turbine blades and containers. At the same time, the company's coating products are also widely used in bridges, steel structures and other fields.
Coatings are often called the coat of industry and are important supporting engineering materials for the national economy and national defense industry. Among them, industrial coatings are an industry with high technical content and added value, representing the technical level of a country's coatings industry. The high-performance industrial coatings such as wind power coatings and marine industrial equipment coatings involved in Makjia Xincai also represent the highest technical level in the coatings industry.
Thanks to its technical accumulation in wind turbine blade coatings and container coatings, Majia Xincai has continuously entered the supplier directory of well-known leading customers, and established a high-quality customer base consisting mainly of listed companies, state-owned enterprises, and large enterprises. Including cooperation with wind power equipment manufacturers such as Sinoma Technology, Zhongfu Lianzhong, Shuangrui Wind Power, Mingyang Intelligent, Times New Materials, Ailang Technology, Chongtong Chengfei, as well as CIMC Group, Singamas Container, Xinhuachang Group , COSCO Shipping, Fuhua Machinery, Guangdong Modern Containers and other major customers such as shipping container manufacturers have established long-term and stable cooperative relationships.
Leading positions in two market segments
Since its establishment in 2002, Majia Xincai has been focusing on the operation of container coatings under industrial coatings, and in 2009, it developed the wind power coatings business. After more than 20 years of development, the business model of Maijia Xincai's procurement, production and sales has become stable.
At present, a number of data demonstrate the market leading position of Makjia Xincai. According to Tujie data, in 2021, Makka Core Color ranked 12th in the list of Chinese industrial coatings companies and 3rd among local companies. Moreover, Majia Xincai won the individual championship of wind turbine protective coatings and wind turbine blade coatings in the 2022 list of individual champion companies in China's coatings industry.
Specifically, let’s look at the two major segments. In the field of container coatings, Majiaxincai has occupied about one-fifth of the market size of the container coatings industry in 2022 and is one of the four largest container coatings suppliers in China; in the field of wind turbine blade coatings, according to estimates, in 2020 and 2021 , Majia Xincai occupies nearly one-third of the market share in this field and is the market leader.
The rapid growth of the market size also promotes the sustained high growth trend of enterprise operations. From 2020 to 2022, Majiaxincai’s revenue was 941 million yuan, 1.990 billion yuan and 1.387 billion yuan respectively, and its net profits reached 176 million yuan, 326 million yuan and 260 million yuan respectively.
Looking back, the achievement of this series of achievements is closely related to Maijia Xincai’s continuous innovation and R&D investment. As of the end of 2022, Majiaxincai and its subsidiaries have a total of 72 patent rights, including a total of 8 invention patents, a total of 63 utility model patents, and a total of 1 design patent. At present, the company has independently developed and formed four core technology systems around wind turbine blade coatings and container coatings.
Since 2012, Maijia Xincai has been continuously rated as a high-tech enterprise, and in 2022 won the titles of National Intellectual Property Advantage Enterprise, Ministry of Industry and Information Technology Specialized and New Little Giant Enterprise, Shanghai Enterprise Technology Center, etc., and established Shanghai City expert workstation.
Also because of the competitive advantages of core technologies, the company's products are frequently used in difficult projects. For example, Maijiaxincai wind turbine blade coating products have been successfully applied to the H260-18MW offshore wind turbine unit led by China State Shipbuilding Corporation and independently developed by China Shipping Equipment. This unit is the wind turbine unit with the largest single unit power and the largest wind rotor diameter in the world as of the end of 2022. The blade is 126 meters long, making it one of the longest blades in the world. At the same time, the company's products have also been successfully applied to Huaneng Group's world's first 2.7-megawatt twin-rotor wind turbine unit.
In the wind power blade and container manufacturing industry, entering the supplier list of end customers is a prerequisite for products to enter relevant manufacturers. In the field of wind power and containers, Majia Xincai has been recognized by mainstream end customer groups and has also built a company Customer resource advantages that stand out from the competition.
The prospectus shows that as Majia Xincai's technical level continues to improve, its product categories continue to enrich, its market coverage continues to expand, its application fields continue to broaden, and its customer base is further expanded and optimized, the company's competitive advantages will be further consolidated and strengthened.
New opportunities under environmental protection trends
In recent years, with the guidance and support from the policy level, the coatings industry has ushered in rapid development. Data released by the China Coatings Industry Association shows that from 2011 to 2022, the annual growth rate of China's coatings production reached 11.25%.
Based on the huge output, there is also a lot of good news for the future growth of the coatings industry. The "14th Five-Year Plan" for China's coatings industry proposes that the total output value will grow at an average annual rate of about 4% by 2025, laying a baseline for the overall development of the coatings industry. The "Classification of Strategic Emerging Industries (2018)" also lists wind power coatings and solvent-free coatings asThe manufacturing of new functional coating materials such as materials has been listed as a strategic emerging industry.
It is worth noting that in addition to the rapid growth of the overall market, the continuous upgrading of regulatory regulations and the increasing customer requirements for sustainable and environmentally friendly products are also driving the development of coating products in the direction of high environmental protection and high performance. For example, the "Comprehensive Work Plan for Energy Conservation and Emission Reduction during the 14th Five-Year Plan" released by the State Council in 2021 requires the promotion of the use of coatings with low volatile organic compound content.
Against this background, environmentally friendly coatings such as domestic water-based paints have become an inevitable trend in the future development of the industry, and their proportion in the overall coatings industry will also continue to increase.
Many years ago, Majia Xincai laid out environmentally friendly coatings in two major segments in advance. In the field of wind turbine blade coatings, the company launched environmentally friendly water-based wind turbine blade coatings in 2016, and is now in a leading position in the country in the field of wind turbine blade coatings. At the same time, in order to maintain its leading edge, Majia Xincai has also launched a new material for offshore wind turbine blade leading edge protection. This product is currently in the offshore test stage of some large wind power manufacturers; in the field of container coatings, Majia Xincai Since 2010, it has begun to vigorously research and develop environmentally friendly coatings, and in 2016, it began to build a Nantong production base to rapidly expand its water-based coating production capacity. At present, the company's water-based container coatings market share has steadily increased, and it has become one of the four largest container coatings suppliers in the world.
Overall, in the past three years, the output of water-based coatings and solvent-free coatings accounted for 74.87%, 89.68% and 84.33% of Makka Xincai's coating products respectively. Environmentally friendly coatings have become the company's most important products. Among them, except for a few special container coatings, the company's main container coating products have all adopted water-based coatings.
Just like the business philosophy of "never-ending innovation and never-compromising quality" proposed by Majiaxincai, the prospectus shows that the company insists on continuously optimizing existing material products and solutions, and moving towards environmental friendliness, durability and expansion of application fields. , is committed to the research and development, production and sales of environmentally friendly, high-performance and special functional coating products in multiple application fields.
New development under strategic layout
With the blessing of new opportunities in core technology and environmental protection, in order to maintain its continued leading edge, Majia Xincai continues to extend its coating technology and expand its strategic layout.
On the one hand, for the wind power field in the new energy sector, Majia Xincai has established a high-quality customer group based on wind turbine blade coatings, and the wind power tower customer group and the wind turbine blade customer group are in the same industry. Relying on the company's customer advantages in wind power blades and technical product reserves in the tower business, Majiaxincai has now begun to develop the wind power tower coating business.
Previously, Majiaxincai has continued to invest in the research and application of cutting-edge technologies such as tower protection. The wind power equipment protective coating series products can be applied to the field of tower protection to achieve long-term stable operation of wind power equipment, making the blades have excellent rain corrosion resistance, wear resistance, aging resistance and other properties.
In the prospectus, Majiaxincai also mentioned that with the development of the company's business and the smooth implementation of fundraising projects in the future, the company will continue to consolidate its dominant position in the fields of wind power coatings and container coatings, and gradually expand wind power tower coatings , ship coatings, etc. new application areas.
On the other hand, Majia Xincai is also exploring related industrial coating fields such as ship coatings, port equipment coatings, and energy storage equipment coatings. Since the beginning of this year, many domestic research institutions have pointed out that the shipbuilding industry will usher in a new boom cycle, and the development of the ship coatings market is closely related to the development of the shipbuilding industry. This means that Mecca Core Color will gain a broader market space.
According to the prospectus, Majiaxincai plans to rely on its existing technology accumulation and talents to actively expand its layout in new fields such as wind power tower coatings and ship coatings. It is currently carrying out the "Ocean-going Ship Coating Series Development" project, which develops general-purpose coatings for ocean-going ships. Anti-corrosion primer, development of ballast tank paint for ocean-going ships and research on its construction, research and development of anti-fouling paint for the bottom of ocean-going ships.
It is understood that the funds raised by Maijiaxincai this time to invest in Maijiaxincai's Jiading headquarters and R&D center project will also focus on wind power tower coatings, ship coatings, port equipment coatings, energy storage equipment coatings and other research and development directions, and build a high-end R&D innovation platform. , improve the company's management efficiency and R&D effectiveness, enrich the company's key technology reserves, and enhance the company's core competitiveness. The improvement of R&D capabilities can also strengthen the company's technical reserves in the new energy sector, ocean transportation sector and large infrastructure sector, helping the company to quickly enter the above new business areas in the future and achieve the company's strategic goals.
The prospectus stated that in the future, Majia Xincai will focus on the three major sectors of new energy, ocean transportation and large infrastructure. Based on the company's current technical advantages in wind turbine blade coatings and container coatings, it continues to expand its technical reserves in new business fields such as wind power tower coatings, ship coatings, port equipment coatings, and energy storage equipment coatings, and continues to increase investment in R&D innovation to build the company's Barriers to innovation.
At the overall strategic layout level, Majia Xincai also proposed that it will give full play to its existing R&D advantages, customer resource advantages and brand advantages, improve corporate governance, standardize management, continue to optimize product structure and production technology, and implement "1+3+N" "Strategy (1: Focus on environmental protection, high performance, special function coatings; 3: Build three major business sectors: new energy sector, ocean transportation sector, large infrastructure sector; N: In each sector, on the premise of adhering to high-end positioning , and constantly expand new application areas.)
�Continue to optimize product structure and production technology, and implement the "1+3+N" strategy (1: focus on environmental protection, high performance, special function coatings; 3: build three major business segments: new energy segment, ocean transportation segment, large infrastructure Section; N: In each section, new application areas are constantly expanded while adhering to high-end positioning.)
