Powder coating resin enterprise Guanghua Technology Sprint Section creation board.

On May 27, Capital State was informed that Zhejiang Guanghua Technology Co., Ltd. (here:Guanghua Technology) has recently been accepted by the Shanghai Stock Exchange, Guotai Junan (15.820, 0.10, 0.64%) as its sponsor.
Guanghua Technology was established on October 11, 2014, is a professional polyester resin research and development, production and sales of high-tech enterprises. Polyester resin products as a key raw material for powder coatings, widely used in construction, furniture, home appliances, automotive, high-speed rail, 3C and many other fields

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sales of polyester resins in 2017-2019 were 475,000 tons, 597,000 tons and 711,000 tons, respectively. According to the statistics of the Professional Committee of Coating Coatings of the Chinese Chemical Society, the company's sales of polyester resins for powder coatings have been the second largest in the industry for many years, and are the leading suppliers of polyester resins for powder coatings in China.
2017-2019, the company achieved revenues of 585 million yuan, 684 million yuan and 738 million yuan, respectively, and realized net profit attributable to the owners of the parent company of 2,964.72 million yuan, 4,168.31 million yuan and 91.9194 million yuan, respectively, according to the financial data of the filing documents.
(Photo Source: Guanghua Technology Prospects)
According to the requirements of the Shanghai Stock Exchange Science and Technology Board Listing Review Rules, combined with the enterprise's own size, operation, profitability and other factors, Guanghua Technology selected the specific listing criteria are: "expected The market value is not less than RMB 1 billion, the net profit in the last two years is positive and the cumulative net profit is not less than RMB50 million, or the expected market value is not less than RMB 1 billion, the net profit in the most recent year is positive and the operating income is not less than RMB100 million.
's proposed public offering of no more than 32 million shares of RMB common stock, to raise 587 million yuan, will be used to invest in an annual output of 120,000 tons of powder coating polyester resin construction projects, research and development center construction projects and supplementary working capital. Details as follows:
(Photo source: Guanghua Technology Prospects)
As of the date of the prospection signing, Sun Jiefeng directly held 63.00 million shares of the Company, accounting for 65.63 percent of the Company's total share capital, and indirectly controlled 7.29 percent of the voting rights of the issuer through his role as an executive partner of Fenghua Investment, controlling a total of 72.92 percent of the Voting Rights of the Company and controlling the voting rights of the Company's shareholders.
Sun Peisong directly holds 500.00 million shares of the company, accounting for 5.21% of the company's total shareholding, Sun Peisong is the father of Sun Jiefeng, Sun Jiefeng and Sun Peisong as the actual controller of the company
Sun Mengjing directly holds 200.00 million shares of the company, accounting for 2.08% of the company's total share value, Sun Mengjing is the daughter of Sun Peisong, Sun Jiefeng sister, as the actual controller of the concerted action.
company's equity structure as shown in the following figure:
(photo source: Guanghua Technology prospecto)
Guanghua Technology admitted that the company's sprint board there are the following risks:
1, the risk of price fluctuations of major raw materials
The company's main raw materials include PTA, NPG, PIA and other chemical raw materials. As basic chemical raw materials, PTA, NPG and PIA prices fluctuate with their supply and demand and oil price fluctuations, which in turn affect the company's procurement and production costs. The company adopts a comprehensive pricing model based on raw material cost and reference market conditions, so that the price of the company's products is basically adapted to the changes in raw material prices, but because the company's product price adjustment usually has a certain lag, the risk of the company's raw material procurement price fluctuations can not be fully and timely passed on to customers, thus affecting the company's profit level.
addition, since the main raw materials account for a higher proportion of the company's product costs, if raw material prices continue to rise, raw material procurement will take up more capital, thereby increasing the company's liquidity pressure.
2, the risk of large balance of accounts receivable
at the end of each reporting period, the balance of the company's accounts receivable was RMB22,361.19 million, RMB24,039.03 million and RMB24,745.71 million, respectively, which is an important part of the company's assets. At the end of the reporting period, the proportion of accounts receivable with a company's aging of less than one year was 96.17 per cent, 97.50 per cent and 97.60 per cent, respectively.
, accounts receivable are likely to continue to increase as the size of the company's sales expands. In addition, the number of domestic powder coating manufacturers, the general scale of operation is small, the ability to resist risks is poor. If the company's corresponding collection of accounts is unfavorable, or downstream powder coating manufacturers do not operate well, will lead to receivables can not be recovered in a timely manner, which will adversely affect the company's asset structure, solvency and cash flow.
3, risk of a decline in gross margin
In the 2017, 2018 and 2019 years, the Company's main business gross margin was 17.85%, 16.24% and 25.49%, respectively. Due to factors such as the decline in raw material prices, the gross margin of the company's main business is at a high level in 2019. In the future, the company may have a negative impact on the profitability of its main business due to adverse factors such as changing market conditions, lower sales prices of major products, higher prices of raw materials, and higher energy and labor costs.
4, the risks associated with the outbreak of new crown pneumonia
In January 2020, China's outbreak of new crown pneumonia, the current domestic epidemic situation improved, but the situation of foreign outbreaks is more serious, is expected to continue to affect global macroeconomic trends and business operations for some time to come. The risks to the company's normal production and operation of the new crown pneumonia epidemic are as follows: in the procurement of
, due to the outbreak of new crown pneumonia and the impact of international crude oil supply and demand, international crude oil prices have fallen sharply since 2020, the company's main raw materials PTA, NPG, PIA and other prices have also dropped significantly. If the prices of crude oil and the company's main raw materials are further affected by the outbreak, it may lead to an increase in the company's inventory prices.
sales, domestic powder coating manufacturers affected by the outbreak of neo-crown pneumonia production delayed resumption, insufficient recovery rate or shutdown, the first quarter of 2020 powder coating demand decreased significantly. With the domestic new crown pneumonia outbreak has been effectively controlled, downstream powder coating manufacturers have gradually resumed work, the company's domestic sales have basically returned to normal. However, at present, the outbreak of new crown pneumonia abroad is serious, because the end application of powder coatings involves the export of products, such as building materials, home appliances, such as foreign new crown pneumonia outbreak can not be effectively controlled, the low end demand may lead to a decline in the overall demand for powder coatings.
, domestic powder coating manufacturers generally operate on a smaller scale, less risk resistance. If the outbreak of neo-crown pneumonia worsens or spreads further, it may lead to operational difficulties for the company's customers, slow recovery of purchases and even an increase in irretractable phenomena.
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