Donghe New Materials (920792) Actual Controller Plans to Reduce Holdings of 3.3 Million Shares, Planned Reduction Ratio 1.99%

On March 20, Liaoning Donghe New Materials Co., Ltd. announced that the company’s actual controller, a shareholder holding more than 5%, and General Manager Bi Yiming plan to reduce their holdings by 3.3 million shares, representing 1.99% of the company.

According to Bingbi Finance, the company is a high-tech enterprise integrating magnesite ore flotation, magnesia smelting, shaped refractory materials, unshaped refractory materials manufacturing, and overall engineering contracting for steel smelting refractory materials. It mainly focuses on magnesium-based refractory material production. The main products include electric-fused magnesia, light-burned magnesium oxide, high-purity magnesia, shaped and unshaped refractory products, among others.

Through model innovation and technological innovation, the company has formed a circular economy model different from typical industry enterprises. In 2012, the company built its first magnesite ore flotation production line. The “Efficient Comprehensive Utilization Demonstration Project of Low-Grade Magnesite” was designated in 2015 as one of the first 34 tailings comprehensive utilization projects by the Ministry of Industry and Information Technology. In 2018, the company took the lead in constructing and commissioning advanced domestic spiral dynamic calcination furnace equipment and processes. By using spiral dynamic calcination, it innovated the production process of light-burned magnesia powder, turning flotation tailings, previously considered waste, into high-value tailings light-burned powder used for flue gas desulfurization and denitrification, expanding application fields and initially achieving tailings zero emissions. Since 2020, the company has continuously developed magnesium building materials and chemical products, exploring new products and markets beyond refractory materials and products. To date, the company owns core technologies including tailings flotation, electric-fused magnesia furnace design and process, high-activity magnesium oxide from spiral dynamic calcination, and waste heat recovery power generation from electric-fused magnesia production, covering all stages of magnesia sand production and accumulating certain technical expertise in refractory products. As of now, the company holds 49 patents, including 8 invention patents.

After years of development, the company has established long-term stable cooperation with well-known domestic and international refractory material distributors such as Southern Mineral International Trade Co., Ltd., NORMAG GMBH (Germany NORMAG), and Yingkou Bayuquan Refractory Materials Co., Ltd., gaining widespread recognition from customers. Relying on its existing distributor network, the company actively strengthens cooperation with major regional distributors, establishing more comprehensive channels and exploring potential market demands. Through the sales network of distributors, the company’s products are distributed domestically and exported to major refractory markets in Europe, North America, and India.

In the second half of the year, as the impact of power policy changes stabilizes and downstream customer procurement demand recovers, the company will continue to increase sales efforts by maintaining existing customers with timely and quality supply, developing new customers, and expanding the market share of existing products to increase revenue and profits. Meanwhile, the company will further reduce and optimize costs through process improvements and technological innovation to increase the output of various product categories and lower production costs, striving to further improve profit margins and ensure the realization of company profits.

Regarding performance, in 2025, the company achieved an operating revenue of 822 million yuan, a year-on-year increase of 20.42%; net profit was 75.05 million yuan, a year-on-year increase of 44%.