At the end of 2020, after China's industrial manufacturing industry got rid of the impact of the epidemic, it accelerated the resumption of production and work, and many listed companies began to seek expansion.

Hangyang Co., Ltd. (002430) plans to invest in the establishment of Yunfu Hangzhou Oxygen Gas Co., Ltd. and build a set of 40,000m/h air separation equipment on December 17, 2020. The total investment of the project is about 262 million yuan; at the end of January this year, it plans to issue transferable The bond fundraising does not exceed 1.8 billion yuan. After deducting the issuance costs, it will all be used for Lulianghang Oxygen Gas Co., Ltd. 50,000Nm/h air separation projects; and plans to invest in the establishment of Yuxi Hangzhou Oxygen Gas Co., Ltd. and implement four new sets of 40,000m3/ h air separation equipment project, the total investment of the project is about 960 million yuan, and it is expected that the air separation equipment will be put into production successively from May 2023.

　　Semiconductor gas products quickly occupy the market

　　 Hangyang Group is mainly engaged in industrial gas and air separation equipment. It is the leader of the domestic air separation equipment industry. The domestic market share of air separation equipment of more than 20,000 yuan is about 50%, and the production and sales volume ranks first in the world.

　　The company's main products are widely used in metallurgy, petrochemical, coal chemical, fertilizer, non-ferrous smelting, aerospace and other fields. In 2017, Hangyang Group delivered six sets of 100,000 grade air separation equipment from Shenhua Ningxia Coal to successfully produce oxygen, breaking the overseas monopoly, and reaching the world's advanced level in main performance indicators, which is of iconic significance.

　　Hangyang currently has the capability to manufacture high-purity nitrogen air separation equipment, and the high-purity nitrogen has been sent to the downstream user LG Company, laying a solid foundation in the field of electronic gas supply services.

According to the company's 2019 annual report, Dacheng (Guangzhou) 30000m/h high-purity nitrogen equipment with a new process and high degree of automation successfully debugged oxygen and produced qualified high-purity nitrogen products. The successful start-up of the project provided the company with electronic gas supply. The foundation is laid in the service area; according to the company’s official website information, the high-purity nitrogen of this set of equipment has been sent to LG.

In July 2019, Hangyang Co., Ltd. signed the "Industrial Gas Supply Contract" with Qingdao Xinen. As the investment, construction and operation unit of the 20000m/h pure nitrogen air separation plant, the company provided high-purity nitrogen and high-quality nitrogen to the Qingdao Xinen integrated circuit project. Pure oxygen, high-purity argon, high-purity hydrogen and other gas products; this project is the company's first gas supply project serving the electronics industry, achieving a major breakthrough in the semiconductor industry, which means that Hangyang's industrial gas business is gradually becoming diversified Advance in the direction of modernization and high-end.

　　 The market space is still broad

　　 In recent years, with the continuous transfer of semiconductor manufacturing silicon wafer capacity to China and the trend of domestic substitution of imports, Hangyang, as a high-quality supplier of electronic gas, is expected to continue to benefit. Because according to the statistics of IC Insight cited by the Foresight Institute, China's wafer production capacity in 2018 was 2.43 million wafers per month (equivalent to 8-inch wafers), and China's domestic wafer production capacity accounted for 13.9% of global wafer production capacity.

　　 According to IC Insight’s forecast of future capacity expansion, as semiconductor manufacturing silicon wafer capacity continues to shift to China, the production capacity of China’s mainland fabs will reach 4.1 million wafers per month in 2022, accounting for 17.15% of global production capacity. From 2018 to 2022, the average annual compound growth rate of China's silicon wafer production capacity reached 14%, which was much higher than the global average annual compound growth rate of 5.3%.

　　 At this stage, the amount of air separation gas consumed by the metallurgical and chemical industries ranks first in all industries. For a long time in the future, the accelerated development of emerging industries such as electronics, new energy, magnetic materials and environmental protection will greatly expand the application fields of air separation gases.

According to data from "Cryogenics and Special Gases", the National Bureau of Statistics, and the Prospective Industry Research Institute, China’s industrial gas market is about 150 billion yuan, and the global gas market is about 120 billion US dollars. The gas market accounts for more than 19% of the world. From 2015 to 2019, the compound growth rate of the domestic gas market was approximately 8.7%, and the compound growth rate of the global gas market was approximately 6.0%.

　　 Since 2010, the proportion of China's industrial gas in the world has basically maintained a steady growth trend, which is consistent with the trend of changes in GDP and industrial added value. I believe that in the context of the continuous improvement of the chip industry and the new energy vehicle industry, the future performance of Hangyang shares is worthy of the market's expectations.