Wall Nuclear Materials: Fushe wire and super refractory have great potential for substitution

On January 8, in the series of activities "Practicing the Chinese Dream - Entering Listed Companies" held by the Shenzhen Stock Exchange, the reporter walked into Wall Nuclear Materials
.
At the event, Wall Nuclear highlighted two new products that the company is currently promoting - Fushe Wire and Super Refractories
.
At the same time, the company also disclosed the operation of Leting after the merger and the synergy integration
with the company.

Wall Nuclear Materials is a company
specializing in polymer nuclear radiation modification new materials series electronics, power products and equipment.
At present, the company has a research and development team of more than 200 people, and all products have independent intellectual property rights
.
Among them, the company participated in the completion of the national "863 Plan" project "High Temperature Superconducting Cable"
.
As of December 31, 2012, the company has applied for a total of 216 patents, 118 authorized patents, and R&D expenses accounted for 4.
51%.

The company currently has more than 2,500 kinds of products, which are widely used in electronics, power and other fields
.
Among the company's many products, Fushe wire and super refractory are undoubtedly the company's most optimistic new products
.

The potential for new material substitution is enormous

Radiation wire, also known as halogen-free flame retardant radiation cross-linked wire, is a new type of cable that is environmentally friendly, safe, high temperature flame retardant, and is an alternative to PVC wires widely used at present
.
It is revealed that 99% of the current domestic wires are PVC wires, so the radiation wires have great
potential.
In the short circuit test of Fushe wire and PVC wire at the event site, PVC wire was almost completely burned, and in the thick smoke, I saw that PVC wire became black ash, copper wire was exposed, and Fushe wire did not change
.

At present, Europe has passed regulations to force the use of halogen-free radiated wires to replace traditional PVC wires
.
Domestically, legislation has not yet been enforced, but the relevant regulations recommend the use of radiant wires
.
Zhou Heping, chairman of the company, believes that domestic legislation to force the use of halogen-free radiation wires is the future trend
.
Wall Nuclear Materials bluntly said that the product is expected to become a new profit point
for the company.

According to Wang Honghui, vice chairman of the company, although there are many manufacturers with radiation processing and production of radiation wires, they are all in their infancy
.
The company's product has been launched for several years and has been used
in large-scale projects such as Shenzhen Metro and Shenzhen Binhai Hospital.
At the same time, the company tested the consumer goods market, and tried e-commerce channels
by building flagship stores on Tmall and JD.
com.

However, Wang Honghui also admitted that the current market of Fushe Wire still needs to be further developed
.
According to the company, because the cost of raw materials and radiation processing is higher than that of ordinary wire, the cost of Fushe wire is about 10%-20%
higher than that of ordinary PVC wire.
This has slowed down the company's new product promotion
.
For example, Zhou Heping said that in the home improvement market, if it is a consumer, for safety and environmental protection reasons, they will choose to buy radiant wire, but builders generally buy cheaper PVC wire, unless the national standard forces the use of radiant wire.

In addition, Wall Nuclear believes that as an industrial product, manufacturers are very cautious in accepting new materials, and it takes time
for concepts to change.
And in marketing, the company, as a supplier of industrial goods, switched to the consumer goods market, still inexperienced
.
Wang Honghui said that at present, the company has tried terminal sales in a variety of ways, including testing e-commerce channels and regional agency systems, but has not yet found a fully effective sales model
.
Due to the high cost, the company currently takes commercial applications as the main market, mainly through architectural design institutes to achieve commercial market promotion
.

Another new product that Wall Nuclear Materials is promoting at this stage, super refractory is ceramic silicone rubber
.
When the product is at room temperature, it is soft and elastic; After the fire, it is as hard as ceramics, and the knock is regarded as a sound; It can withstand thousands of degrees of high temperature and is widely used, especially in fire-resistant cables to replace mica materials
.
According to the company, the product has been listed in the second prize of Shenzhen Strategic New Materials and Technology Innovation Award, and has won 11 relevant patents, and has been recognized
by industry experts when visiting the company.

In 2012, the company's products have achieved 6 million revenue
.
At the event, Wang Honghui said that the sales of the product in 2013 increased several times, and the specific data will be disclosed
in the annual report.
Wang bluntly said that the current sales of super refractories are better
than Fushe wire.

In order to verify the fire resistance characteristics of the product, in this event, the company not only prepared samples of the above two new products for each investor, but also conducted fire resistance tests on site, just like a new product launch conference
.
In the test, the company's technicians incinerated the super refractory material at high temperature for nearly 20 minutes, and the back part of the incineration really looked like hard ceramics, and the knocking was regarded as a sound
.

The company provides irradiation processing services for Leting Company

In 2012, Wall Nuclear acquired Leting Company, a wire company owned by Belden Group, a listed company in the United States, which owns the well-known brand "LTK"
.
Regarding investors' questions about why the Lotting brand was still used by the original owner Belden after the acquisition, Wang Honghui said that due to the brand switch, the company still authorized Belden to use it after the acquisition of the Leting brand, and the deadline for use was June 2014
.
At present, Belden Company's China company Suzhou Leting, which was not acquired by Wall Nuclear Materials, has changed its name to Suzhou Belden
.

Wang Honghui said that as the wire brand asset of the former Fortune 500 company Belden, Leting has excellent wire production and design capabilities, and will better coordinate with the company's radiation modification materials and refractory development capabilities, which is the reason for
the company's acquisition of Leting.
At present, Lotting is operating well, and the two parties have gradually integrated in R&D, personnel, finance, sales, production, etc.
, so that Lotting can be integrated into the company's strategic system
.
However, Lotting and the company basically maintain independent operations, and the biggest collaboration between the company and Lotting last year was to provide irradiation processing services to Leting to reduce each other's costs
.

According to the 2013 interim report of Wall Nuclear Materials, the operating income of the wire and cable business of Leting Company was 274 million yuan, accounting for 45.
53%.

As a result of this acquisition, Wall Nuclear Materials has seen significant year-on-year revenue growth since 2013 and has made Huawei one of the company's top ten customers
.