Breaking Down FangDa Carbon New Material Co.,Ltd Financial Health: Key Insights for Investors

Founded in 1965 and headquartered in Lanzhou, Fangda Carbon New Material Co., Ltd. has grown into a powerhouse in graphite electrodes, carbon blocks and new carbon materials with a comprehensive production capacity of 230,000 tons, operating through over ten subsidiaries such as Fushun Carbon and Chengdu Rongguang Carbon while expanding exports to North America, Europe and Southeast Asia; with a stated mission to 'benefit the enterprise and benefit the employees,' uphold 'integrity first, people first,' and 'take from the society and return to the society,' Fangda pairs a people-centric ethos with a strategic focus on technological progress, fine management, brand-building and industry-chain integration-an approach that helped it report approximately 10 billion yuan in revenue in 2024 and secure recognition on Forbes' Global 2000 list in 2019, underscoring its vision to become a global leader in new carbon materials while pursuing sustainable, internationally oriented growth.

FangDa Carbon New Material Co.,Ltd (600516.SS) - Intro

• Founded: 1965 (Lanzhou, China)
• Stock code: 600516.SS
• 2024 Revenue: ~10 billion yuan
• Production capacity: 230,000 tons (graphite electrodes, carbon blocks, new carbon materials)
• Subsidiaries: >10 (including Fushun Carbon, Chengdu Rongguang Carbon)
• Global recognition: Forbes Global 2000 (2019)
• Export regions: North America, Europe, Southeast Asia

• Ensure reliable supply: maintain full-capacity utilization across 230,000-ton production base
• Quality leadership: adhere to stringent QC standards recognized by global clients
• Customer focus: tailor solutions for steel, aluminum, and specialty industries
• R&D-driven product upgrade: invest in new carbon materials and process optimization

• Global scale: expand export share in North America, Europe, and Southeast Asia
• Product diversification: grow portfolio beyond traditional electrodes and blocks into new carbon materials
• Sustainability focus: support customers' decarbonization through higher-efficiency products
• Operational resilience: optimize supply chains across subsidiaries including Fushun Carbon and Chengdu Rongguang Carbon

• Integrity - transparent governance and compliance for stakeholders and markets
• Quality - uncompromising standards across production and service
• Innovation - continuous R&D to develop next-generation carbon materials
• Customer Commitment - tailor-made solutions and reliable delivery
• Collaboration - leverage a network of subsidiaries to optimize scale and capability
• Sustainability - promote energy-efficient products and responsible manufacturing

FangDa Carbon New Material Co.,Ltd (600516.SS) - Overview

FangDa Carbon New Material Co.,Ltd (600516.SS) anchors its strategic direction on a clearly articulated mission, vision and set of core values that guide operations, capital allocation, R&D and stakeholder engagement. The company's ethos centers on people-first management, social responsibility, technological advancement, brand building and sector leadership as it pursues expansion in carbon materials and high-end graphite products.

Mission Statement

• "Benefit the enterprise and benefit the employees" - aligning corporate success with employee welfare through profit-sharing, training and career development programs.
• "Integrity first, people first" - governance and culture that prioritize compliance, transparent reporting and employee safety.
• "Take from the society and return to the society" - active social responsibility initiatives, local employment, and community investment.
• Technological progress & fine management - continuous process improvement, automation and product-portfolio optimization to raise margins and resource efficiency.
• Brand strategy implementation - strengthening market presence domestically and internationally through brand, quality certification and customer service.
• "Continue to write a new chapter of China's carbon industry" - ambition to lead upstream and downstream value chains in specialty carbon and graphite materials.

Vision and Strategic Priorities

• Scale high-value, low-carbon product lines (graphitized electrodes, high-purity graphite, specialty carbon composites).
• Increase R&D intensity and industrialize advanced processes (higher graphitization temperatures, coated electrode technologies).
• Optimize resource allocation via asset rationalization, capacity expansions in higher-margin segments and vertical integration of supply.
• Expand global footprint in key markets (electrolysis, EV battery anode precursors, aerospace & advanced manufacturing).
• Embed ESG metrics into capital decisions: energy efficiency, emissions control and workplace safety.

Core Values in Practice - KPIs and Performance Metrics

FangDa Carbon translates its mission into measurable targets across finance, operations and social metrics. Representative indicators include:

• Revenue growth and margin improvement tied to product mix optimization.
• R&D spend as a share of revenue to support new high-value products.
• Capacity utilization and yield rates in electrode and graphite lines.
• Workplace safety frequency rates and local employment figures.
• Carbon emission intensity and energy consumption per tonne of product.

Selected Financial & Operational Metrics (Recent Annual Snapshot)

Management Focus Areas Linked to Mission

• Human capital: recruitment, vocational training and profit-sharing to "benefit the employees."
• Compliance & governance: auditing, third-party certification and transparent disclosure aligned with "integrity first."
• Social contribution: targeted community projects and local supplier development under "take from the society and return to the society."
• Operational excellence: lean manufacturing, digital plant upgrades and energy recovery systems to reduce unit costs and emissions.
• Brand & market development: premium positioning for high-purity graphite and strategic alliances in EV and metallurgy sectors.

For a detailed financial assessment and investor-oriented metrics, see: Breaking Down FangDa Carbon New Material Co.,Ltd Financial Health: Key Insights for Investors

FangDa Carbon New Material Co.,Ltd (600516.SS) - Mission Statement

• Develop world-class graphite electrodes and carbon bricks that meet advanced steelmaking and specialty carbon applications.
• Extend and vertically integrate the carbon industry chain-from raw material preparation to high-value finished carbon products-to capture more value and improve resilience.
• Embed sustainability into operations by reducing energy intensity, increasing recycling of carbon materials, and minimizing emissions across production sites.
• Pursue global expansion through exports, overseas partnerships, and capacity deployment in strategic markets.
• Balance economic growth with social responsibility and environmental stewardship to ensure durable competitiveness.

• Global leadership: target top-tier market share in graphite electrodes and growing share in specialty carbon markets worldwide.
• Industry chain extension: investment in upstream raw materials, processing, and downstream high-value products to improve margins and supply security.
• Sustainability: set measurable targets for energy consumption reduction, emissions intensity, and recycling rates across facilities.
• Internationalization: establish distribution networks and partnerships in Asia, Europe, and the Americas to diversify customer base.
• Long-term viability: maintain financial strength and governance standards that support continuous R&D and capital investment.

• Capacity expansion projects for ultra-high-power (UHP) graphite electrodes to meet demand from electric-arc furnace (EAF) steelmaking and specialty applications.
• Vertical integration investments-improving coke processing, calcination, and customization capabilities for downstream carbon brick and specialty graphite products.
• Technology roadmap emphasizing lower energy intensity, nitrogen/CO2 emission controls, and process optimization through automation and digital monitoring.
• Targeted international partnerships and sales channels to raise overseas revenue share and mitigate regional demand swings.
• Governance and ESG programs to align capital allocation, reporting, and stakeholder engagement with long-term sustainability goals.

FangDa Carbon New Material Co.,Ltd (600516.SS) - Vision Statement

• Innovation-driven growth: sustained investment in R&D to move up the value chain from commodity carbon products to specialty and high-performance carbon materials.
• Integrity and people-first governance: corporate decisions guided by 'integrity first, people first,' ensuring compliance, transparent governance and employee development.
• Shared prosperity: aligning employee incentives and career development with company performance to distribute value among staff and shareholders.
• Social responsibility: committed to environmental stewardship, community contribution and supply-chain responsibility - 'take from the society and return to the society.'
• Operational excellence: technological progress and fine management to accelerate product-structure adjustment, optimize resource allocation and improve margins.
• Brand leadership: implement a brand strategy to strengthen market presence and competitiveness in domestic and international markets.

• R&D intensity: target R&D spend at or above 1.5%-3.0% of annual revenue to support specialty product development and downstream applications.
• Margin improvement: improve gross margin by 200-500 basis points over a three-year period via product mix upgrade and efficiency gains.
• Capacity optimization: shift capital allocation toward high-margin, lower-carbon-footprint products and expand specialty capacity each year.
• Sustainability metrics: reduce specific energy consumption and emissions intensity per ton of product by targeted annual percentages.

• R&D hubs and partnerships: expand internal labs and strategic collaborations with universities and industry partners to accelerate specialty carbon materials and battery-related products.
• Talent and culture programs: leadership development, technical skill tracks, and employee share/bonus mechanisms to 'share achievements with staff.'
• Operational upgrades: lean manufacturing, digitalization, and energy-efficiency retrofits to improve utilization and reduce unit costs.
• Environmental and community projects: investments in emissions controls, waste reduction and local community programs consistent with the company's social responsibility commitments.
• Brand and market expansion: targeted product branding for high-growth end-markets (new energy, electronic materials, advanced metallurgy) and selective overseas market penetration.

• Revenue from high-value products (% of total revenue)
• R&D output: number of patents granted and new product sales
• Employee retention and average training hours per employee
• Energy consumption and CO2 emissions per ton of product
• Return on invested capital (ROIC) and adjusted EBITDA margin