World magnetism is in China, and China magnetism is in the East. The changes of economic situation, cost and downstream industrial chain have caused the transfer of the world magnetic material industrial chain in Europe, the United States, Japan and China. At present, the domestic production of magnetic materials has accounted for half of the world. After the rapid growth of output, the future development of ferrite magnetic materials in China will focus on the improvement of performance.
The concentration of domestic magnetic materials industry is still low, and there are many small and medium-sized enterprises. Even large enterprises are far behind the international giants. A set of widely quoted data is that in 2004, TDK's annual sales revenue was about 8.5 billion US dollars, which was five times the total output value of China's magnetic materials industry. However, we firmly believe that a giant of magnetic materials like TDK will grow on the land of China, and Hengdian Dongci is a high-quality company with the greatest growth potential at present.
The company's profits show a good growth momentum. In the past few years, the company has shown a good growth momentum in both sales scale and profitability, and from the composition of the company's main business, permanent magnets and soft ferrite occupy the most important position, accounting for about 90% of the main business income and gross profit of 100%. In 2005, the company produced 48 1000 tons of permanent ferrite and 2 12000 tons of soft ferrite, accounting for 7.76% and 7.3 1% of the global output respectively. It is the largest producer of permanent magnetic ferrite in the world and the leading producer of soft magnetic ferrite in China. After IPO, the company's magnetic material production capacity will be further improved, and Hengdian East Magnetic China's status as a magnetic capital has been initially laid.
The company has strong R&D capabilities and deep technical reserves. Hengdian Dongci has the first national-level enterprise postdoctoral research center in the magnetic materials industry in China, Zhejiang Magnetic Product Quality Testing Center and Zhejiang Magnetic Materials Experimental Base, and has established a new product research and development system with Academia Sinica as the core. Good software and hardware environment and strong scientific research team make the company have strong new product launch ability. In recent years, the average price and profitability of the company's products have been continuously improved.