Huitong Technology plans to land on the Growth Enterprise Market: the market share of main products of chemical engineering high-end equipment service providers exceeds 10%

On June 20, the IPO application of Yangzhou Huitong Technology Co.
, Ltd.
(“Huitong Technology”) was accepted by the Shenzhen Stock Exchange and planned to be listed on the Growth Enterprise Market
.

Huitong Technology is a chemical engineering high-end equipment and product overall technical solution provider, mainly engaged in hydrogen peroxide (fluidized bed and fixed bed process), nylon (PA66, PA56, etc.
, batch and continuous process), polyester (PET, PBT, Engineering design, equipment manufacturing and installation of PTT, hot melt adhesive, etc.
, intermittent and continuous processes), degradable materials (PBS, PBAT, PLA, etc.
), and other polymers (carbon fiber, PC, POM, etc.
); Comprehensive services for the whole process from design to device start-up
.

In terms of customers, Huitong Technology has currently cooperated with Yangnong Chemical, Pingmei Shenma, Kasai Biological, China Tianchen, Yida Co.
, Ltd.
, Changhong Hi-Tech, Wanhua Chemical, Mining Group, Shanxi Huayang, Hubei Yihua, France Industry-leading customers such as Air Liquide have established business partnerships
.

Huitong Technology stated in the prospectus that by the end of 2021, among the projects already built or under construction that the company serves, the cumulative designed annual production capacity of nylon 66 production line exceeds 143,000 tons, and the cumulative designed annual production capacity of PBAT biodegradable material production line exceeds 300,000 tons.
The cumulative designed annual production capacity of the hydrogen peroxide fluidized bed production line exceeds 2.
2 million tons
.
The company's market share in nylon 66, PBAT/PBS, hydrogen peroxide (fluidized bed) is about 25%, 11% and 27%
.

In terms of performance, Huitong Technology's revenue in 2019, 2020, and 2021 were 169 million yuan, 194 million yuan, and 498 million yuan respectively; net profits were 30.
54 million yuan, 30.
65 million yuan, and 89.
7 million yuan respectively; 21.
54 million yuan, 21.
88 million yuan, and 87.
09 million yuan
.

In recent years, Huitong Technology has increased investment in technology research and development in various business fields.
The research and development expenses in 2019, 2020 and 2021 were 12.
9628 million yuan, 16.
2908 million yuan and 22.
4101 million yuan respectively.
The proportions were 7.
69%, 8.
41% and 4.
50% respectively
.

As of December 31, 2021, the company has 17 domestic invention patents, and its core technologies have won the second prize of National Technology Invention Award, the first prize of Zhejiang Province Technology Invention Award, the third prize of Jiangsu Province Science and Technology Award, and the Science and Technology Award of China National Textile and Apparel Council.
The first prize of progress and the second prize of China Coal Industry Science and Technology Award of China Coal Workers Industry Association: the core equipment has won two first sets (sets) in Jiangsu Province, major equipment product certification, six Jiangsu Province high-tech product certifications, and one Jiangsu Province new product certification.
Product certification
.
In addition, the company, as the responsible unit, has completed the national key R&D project of "Preparation Technology of High-Performance Polyester and Polyamide 66 Industrial Yarn"
.

In this IPO, Huitong Technology plans to raise 402 million yuan, of which 150 million yuan will be used for the intelligent upgrading and transformation project of high-end chemical equipment production lines, and 252 million yuan will be used for the technology research and development center (Huitong Research Institute) project
.