Sifangda: To build a world-class manufacturer of composite superhard materials and products

Henan Quartet of superhard materials Co., Ltd. (stock code: 300 179, the company referred to as: SFD, hereinafter referred to as the "Company") will issue 200 million A shares on January 27, and as planned in Shenzhen Stock Exchange GEM listing. Sifangda, the largest polycrystalline diamond production and research enterprise in China, is the largest polycrystalline diamond (PCD) production R&D enterprise in China. It is the only enterprise in China that can simultaneously produce four types of PCD composite materials. The company mainly provides customers with various types of composite super-hard materials with complete product categories, complete specifications and stable performance, including petroleum composite sheets, mining composite sheets, tool composite sheets and PCD drawing blanks. At present, the company has become the world's top three PCD drawing die blank supplier, and is also the domestic enterprise that can produce the largest diameter PCD drawing die blank. At the same time, the company is also one of the few enterprises in China that can manufacture tool composite sheets. It is the first domestic scale production. The company that manufactures large-size PCD cutters with a diameter of 46mm has a 5-10% market share in the domestic tool composite market.   The core of the production of composite superhard materials is raw material processing and formulation design. In recent years, the company has made major breakthroughs in key technology fields, and has a number of patents and patent applications: in the field of petroleum/mine composite sheets, the company has a polycrystalline diamond layer surface to Co technology; in the field of PCD drawing die blanks, The company has ultra-fine diamond particle size polycrystalline diamond wire drawing die blank technology; in the field of tool composite sheets, the company has the production technology of polycrystalline diamond composite sheets for oversized cutting tools. In addition, the company has developed a six-sided top press synthesis technology and complete set of processing technology that is different from the foreign annual round-type double-sided top press synthesis technology, and has established a set of efficient, complete, economical and reliable production lines. . With the support of advanced production technology and unique material formula, the technical performance of the company's composite super-hard materials is far ahead of the domestic similar products, close to or reach the level of international similar products. At the same time, the company has made great progress in the field of composite superhard materials development. It has developed polycrystalline diamond wire drawing blanks for high hardness and high precision alloy wire, such as wires used for cutting polycrystalline silicon wafers in China's solar industry and steel cords for high-grade automobile tires, suitable for oil/gas in complex formations. Polycrystalline diamond compacts for drill bits and conical PDC gears have entered the pilot and small batch production stages, laying a solid foundation for the company's continued profit growth; in addition, the company's superhard materials for downstream products of superhard materials. Significant progress has also been made in the tool. Products such as PDC drill bits for geological drilling have entered the trial production stage and become potential profit growth points for the company in the future. Oil/mine composite sheets are the company's biggest growth point. In 2009, the company's mining composite sheet realized sales of 22.731 million yuan, a substantial increase of 136.30% year-on-year. It has firmly established the "Sifang" brand in the national mining composite sheet market; the company's petroleum composite sheet achieved sales of 23,390,500. Yuan, a year-on-year increase of 25.17%, sales to major customers such as Daqing Oilfield Administration and Sinopec Shengli Oilfield Co., Ltd. continued to rise; at the same time, the company has achieved remarkable results in the development of the Russian market, becoming the largest drill company in Russia, VOLGABURMASH One of the major suppliers, the trend of rapid growth in the field in the future is obvious. Replacing traditional products, space, broad composite superhard materials, promising composite superhard materials are the newest composite materials with the highest hardness so far. Compared with traditional materials such as cemented carbide, they have higher hardness, better wear resistance and higher thermal conductivity. Advantages such as better processing performance, its replacement effect on traditional cemented carbide materials has been in the fields of machinery, metallurgy, geology, petroleum, coal, stone, construction, electronic information, aerospace, defense, and other fields. Reflected. At the same time, due to the excellent performance of composite super-hard materials in terms of service life, processing quality and processing efficiency, it also has the advantages of rich raw materials, energy conservation and industrial upgrading of the processing industry. The use of composite superhard materials not only enables the original hard alloys to be processed, but also improves the processing efficiency and processing quality, and the application of high-life composite superhard materials reduces the number of replacement of processing tools. Thereby greatly promoting the industrial upgrading of the machining and drilling industry. With the development of composite super-hard materials, its cost-effective advantage has gradually been recognized by downstream customers, and will replace traditional materials in more production applications in the future. At present, the global market capacity of the main products of composite super-hard materials is about 70 billion yuan, and its future development space and potential market capacity are very huge. In China, the internal material accumulation and external market demand required for the development of the composite superhard materials industry are relatively mature. China has become the world's largest producer of superhard materials, with sufficient supply of raw materials, strong support from national industrial policies, and abundant supply of skilled labor. At the same time, the national economy and manufacturing industry have a strong desire to upgrade their industrial structure in the process of rapid development. The market demand for composite super-hard materials is strong in the fields of metallurgy, geology, petroleum, coal, aerospace, and defense and military. In addition, Henan Province, where the company is located, is the main source and industry center of China's superhard materials. It is also an important R&D and industrialization base for superhard materials in China. Henan superhard materials enterprises have occupied 90% of the global market share. As the largest composite superhard material manufacturer in China, based on the company's strong R&D strength and leading technology level, with this outstanding location advantage, the company has a broad future development space. Leveraging the capital market to achieve the company's international national independent brand goal This issuance and listing is an important opportunity in the company's development process. Through the implementation of composite superhard material high-tech industrialization project, composite super-hard material product project, composite super-hard material and product R&D center project, the company's capacity saturation problem will be effectively solved, and the company's technology leadership and R&D advantages will be further reflected. In order to achieve further improvement in the company's operating scale, operating efficiency and core competitiveness. After the high-tech industrialization project of composite superhard materials is put into production, it will form an annual production capacity of 542,280 pieces of polycrystalline diamond composite superhard materials; after the project of composite superhard material products is put into production, it will form an annual output of 186,650 composite superhard materials. The production capacity is conducive to the downstream extension of the company's industrial chain; the implementation of the R&D center project can ensure that the technical advantages of the company's products can be maintained, which is the foundation guarantee for the company to achieve sustainable development. In the future, the company will continue to consolidate and enhance its leading position in the field of high-grade PCD drawing die blanks, and gradually expand the market share of cutting tools for composites, diamond composite sheets for oil/natural gas drill bits, and diamond composite sheets for coal fields/mine drills. At the same time, further strengthen international technical cooperation, gradually expand the company's overseas business market, realize the vision of building an international national independent brand, and strive to make the company develop into a complete product range, complete industrial chain, domestic leading, world-class composite Manufacturer of superhard materials and products.  

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