Dialogue Head of science and technology innovation board | Tongyizhong Huang Xingliang: Forming a "small courtyard and high wall" in the high-strength polyethylene industry

"We successfully developed the first bundle of ultra-high molecular weight polyethylene fibers in China in 2000. At that time, the diameter of the first bundle of fibers successfully pulled out was only one-third of that of hair, but the load-bearing capacity reached 30kg, which meant that we made up for the industry gap of ultra-high molecular weight polyethylene fibers in China. " Huang Xingliang recalled.

As a platform of polymer new materials cultivated by SDIC for a long time, Yizhong undertakes the important task of developing strategic new materials. The company will adhere to both connotation development and extension development, enlarge and strengthen the industrial ecology, deepen the moat and forge long boards, and form a "small courtyard and high wall" in the high-strength polyethylene industry.

◎ Reporter Wang Zilin ○ Editor Li Kuiling

On October 19th, Beijing Tongyizhong New Material Technology Co., Ltd. officially landed in science and technology innovation board of Shanghai Stock Exchange, becoming the first high-performance fiber in science and technology innovation board. Most investors may be unfamiliar with the company's core product "ultra-high molecular weight polyethylene fiber". In fact, ultra-high molecular weight polyethylene fiber is a strategic material, which is mainly used in bullet-proof vests, ship cables and other key fields.

Under the technical blockade of foreign enterprises, China was unable to manufacture soft bulletproof vests for a long time. Until 2000, Tongyizhong pulled out the "first bundle of filaments" of ultra-high molecular weight polyethylene fibers in China, realizing the key leap of ultra-high molecular weight polyethylene fibers in China from scratch. After years of development, bullet-proof products made of Tongyizhong materials stand out in the "Police Shield" comparison activities of the Ministry of Public Security. It has become a leading enterprise in the industry in bulletproof non-woven cloth, bulletproof vest, bulletproof helmet and stab-resistant clothing.

Huang Xingliang, chairman and general manager of Tongyizhong, said in an interview with shanghai securities news that Tongyizhong will take landing in science and technology innovation board as a new development opportunity, adhere to the path of "technology developing in depth and application developing vertically and horizontally", build a world-class leading enterprise of new materials, undertake the important task of national strategic development, and create greater value for the country, army, society, companies and employees.

Huang Xingliang, Chairman and General Manager of Tongyizhong

Pull out the domestic "first bundle of silk"

Before 1990s, the bulletproof vests independently produced in China were mainly hard bulletproof vests with special steel or aluminum alloy as the main protective materials. Although the protective effect is guaranteed, compared with soft bulletproof vests, hard bulletproof vests have a big gap in flexibility and comfort.

"The manufacturing difficulty of soft bullet-proof vest at that time was the material, that is, ultra-high molecular weight polyethylene (UHMWPE) fiber, the company's main business at present." Huang Xingliang told reporters that this fiber is the third generation of high-performance fiber after carbon fiber and aramid fiber, and it is the fiber with the highest specific strength and modulus among industrialized high-performance fiber materials at present. Because of its high elongation at break, low density, fast heat transfer, good weather resistance, good flexibility and strong impact resistance, it has been widely used in military equipment, marine industry, safety protection, sports equipment, aerospace, textile and other fields.

In the late 1970s, DSM in the Netherlands successfully produced UHMWPE fiber, and industrial production began in 1980s. For a long time, the world market of UHMWPE fiber was monopolized by several foreign companies. In February, 1999, Tongyizhong was incorporated in Beijing, which started an ice-breaking journey of domestic R&D in this field.

"On the basis of five-year pre-research, we successfully developed the first bundle of ultra-high molecular weight polyethylene fibers in China in 2000." Huang Xingliang recalled, "At that time, the first bundle of fibers successfully pulled out was only one-third of the diameter of hair, but the load-bearing capacity reached 30 kg, which means that we made up for the industry gap of ultra-high molecular weight polyethylene fibers in China." Speaking of this moment 20 years ago, Huang Xingliang still can't hide his pride.

For a long time after that, product development and industrial application became the primary task in Tongyi. In 2015, the "15 Armed Police Special War Bulletproof Carrying Vest" with the international advanced level came out, and the ultra-high molecular weight polyethylene fiber material was officially used as a bulletproof material, and it was equipped and applied in large quantities, and the protection index was greatly improved.

"In July 2017, the bulletproof vests worn by officers and men during Zhu Ri's military parade were made from Tongyizhong. This product is also the most advanced bulletproof vest product. This has greatly enhanced the sense of mission of our industry to serve the country and protect national security. " Huang Xingliang said.

Up to now, Tongyizhong has presided over or participated in the formulation of one national standard and seven ultra-high molecular weight polyethylene fiber industry standards. In August, 2021, Tongyizhong entered the list of national specialized and special "Little Giant" enterprises. This is the affirmation and support of Tongyizhong, a pioneer enterprise with strong innovation ability, mastery of core technologies, focus on market segmentation, high market share and excellent quality and efficiency.

The civil market has great potential.

According to "Analysis Report on Market Prospect and Investment Planning of China's Ultra-high Molecular Weight Polyethylene Fiber Industry from 2020 to 2025" by Prospective Industry Research Institute and the explanation issued by China Chemical Fiber Industry Association, in 2020, the theoretical demand of China's ultra-high molecular weight polyethylene fiber reached 49,100 tons, while the output of China's ultra-high molecular weight polyethylene fiber was only 21,000 tons, far below the demand of the industry, and the theoretical demand gap was large.

Military products business contributed most of the revenue of Tongyi. In 2020, the sales revenue from civil businesses such as marine industry, safety protection and sports equipment was 104 million yuan, accounting for about 37.5% of the company's total revenue. Huang Xingliang told reporters that on the basis of the original market layout, Tongyizhong will concentrate superior resources, focus on large-scale military equipment, security protection and other high-end markets, develop large markets and big customers, and actively expand household textiles, sports equipment, building reinforcement and other civil fields.

The reporter learned that due to the limitation of cost and price, UHMWPE fiber is mainly used in military equipment, marine industry, safety protection and other fields, and its application in civil field is relatively slow. In recent years, with the comprehensive development of the technical research and industrial application of ultra-high molecular weight polyethylene fiber, the product price has gradually decreased, and ultra-high molecular weight polyethylene fiber products are extending to the general industrial field.

"Mountaineering ropes, fishing lines, fencing suits in the field of sports equipment, hanging ropes and special fences in the construction industry, and optical fiber reinforced cores in the field of communication all have demands for ultra-high molecular weight polyethylene fibers. Especially in the marine industry, there will be a large market demand for ropes and cables for ships, bulletproof ships, port protection, offshore fishing nets and marine aquaculture cages, and anchoring and positioning of drilling platforms in the future. "

Huang Xingliang introduced that in the future, the company will focus on "new spinning technology of high-strength polyethylene fiber", "informatization, intelligence and low cost of manufacturing platform", "low creep ultra-high molecular weight polyethylene fiber", medical fiber and radome, etc. At the same time, the company will increase the development of the whole offshore market, and pay attention to the application scenarios of offshore market, including cage culture, port protection, marine fishing, oil drilling platforms, etc.

On the premise that the time is ripe, the company will consider appropriately integrating upstream and downstream resources of the industry through various forms such as capital investment, technology introduction, strategic alliance, etc., so as to produce greater scale effect and enhance the overall competitive strength of the company. At the same time, as the new materials listing platform of SDIC Group, the company does not rule out the possibility of developing other new materials.

Build a world-class enterprise

In November 2019, Tongyizhong's mixed ownership reform was officially signed, and six war investors, namely, National Industrial Investment Fund, Rongfa Fund, Shanghai Industrial Equity Investment Fund, Zhongqi Dongjian, Jincai Shenghe and Financial Street Capital, were introduced in one fell swoop, and equity incentives were completed. "We are the first mixed-reform pilot enterprise of SDIC Group, the first breakthrough of SDIC Group in implementing the mixed ownership reform of technology-based enterprises and promoting employee equity incentives, and the first of SASAC technology-based enterprises to implement employee equity incentives." When talking about this mixed reform, Huang Xingliang introduced.

It is understood that Tongyizhong took out 6.45% shares to carry out employee equity incentives, and the targets were all important technicians and managers who signed labor contracts with the company. From the perspective of the nature of the incentive object, it includes middle and senior managers in charge of the production and operation of the enterprise and important technical personnel of the company. A total of 50 people participated in this employee equity incentive, of which 18 people subscribed for more than 1 million yuan; Among the important technicians, there are 15 people who have subscribed for more than 1 million yuan.

Huang Xingliang said that through the mixed reform, the company has further improved the corporate governance structure, truly realized the organic unity of the interests of the state, shareholders, employees, customers and suppliers, and also reflected the true meaning of "common interests are among them" in Tongyi, and the sense of responsibility of Tongyi Chinese people who dare to take responsibility and be brave in pioneering.

With the actual controller of Yizhong, SDIC Group is the only investment holding company in the central enterprises, and it is also the first batch of pilot units for the reform of state-owned capital investment companies.

Huang Xingliang introduced that Tongyizhong, as a platform of polymer new materials cultivated by SDIC for a long time, is responsible for the group's development of strategic new materials. The company will adhere to both connotation development and extension development, enlarge and strengthen the industrial ecology, deepen the moat and forge long boards, and form a "small courtyard and high wall" in the high-strength polyethylene industry.

For the company's "14th Five-Year Plan", Huang Xingliang introduced that in the research and development of ultra-high molecular weight polyethylene fiber products, the company plans to develop functional fibers, low creep fibers, medical fibers, etc. In the research and development of composite materials, the company will continue to develop non-woven cloth, bulletproof board, bulletproof helmet, radome, etc. with high protective performance.

Huang Xingliang said that after listing, the company will adhere to the strategic goal of "basing on high-strength polyethylene, surpassing high-strength polyethylene, and taking scientific and technological innovation and internationalization as the guidance", and build itself into an internationally renowned new material technology company.