Analysis Report on Market Prospect and Investment Strategic Planning of China's New Materials Industry

According to the Analysis Report on Market Prospect and Investment Strategic Planning of China's New Materials Industry, the output value of the world's materials industry is growing at an annual rate of about 30%. New chemical materials, microelectronics, optoelectronics, and new energy have become the most active, fastest growing, and most promising new materials fields for investors. Material innovation has become one of the important driving forces to promote human civilization and progress, and has also promoted the development of technology and industrial upgrading.

New chemical materials are one of the emerging industries in the field of low-carbon economy supported by the state. According to the Decision on Accelerating the Cultivation and Development of Strategic Emerging Industries and the Twelfth Five Year Development Plan for New Materials Industry, the new chemical materials industry has become the leading industry in the national economy; The Twelfth Five Year Plan for Scientific and Technological Development of Petroleum and Chemical Industry proposes that by 2015, the gap between the overall technical level of domestic high-end chemical new materials and that of developed countries should be narrowed to about 10 years, reaching the international advanced level at the beginning of this century; The Twelfth Five Year Development Plan for Petrochemical and Chemical Industry proposed that the development priorities of new chemical materials in the Twelfth Five Year Plan include: special synthetic rubber, engineering plastics, high-performance fibers, fluorosilicone materials, degradable materials, functional membrane materials, functional polymer materials, composite materials and other fields.

There is a huge market gap in the domestic chemical new materials market. The import volume accounts for most of the domestic market share. The overall self-sufficiency rate of domestic chemical new materials is about 56%, of which the self-sufficiency rate of new chemical materials in new fields is only 52%, and the self-sufficiency rates of engineering plastics and special rubber are only 35% and 30%.

New chemical material products will experience the process of fluctuation of gross profit rate and rising import substitution rate. In the process of import substitution of new chemical materials, the contradiction between supply and demand of most products is not prominent. Some products are in short supply. Enterprises mastering core technologies can gain profits proportional to investment through capacity expansion, and most enterprises can achieve sustained and rapid growth. High barriers bring high returns. The gross profit margin of cutting-edge chemical new materials is more than 70%, far exceeding the industry average profit of about 15% for bulk chemicals.

According to the Analysis Report on the Development Prospect and Investment Strategic Planning of China's New Chemical Materials Industry, the adjustment of the industrial structure of new chemical materials and the development of strategic emerging industries have provided a large market space for the new chemical materials industry. The national policy of encouraging innovation may gradually promote its production technology to make breakthroughs.