The IPO was accepted, and Ningbo Ring Ocean New Materials is proposed to raise 2 billion yuan

On January 6, according to SSE, SSE has accepted the initial application of Ningbo Ring Ocean New Materials Co., Ltd. The shares are to be listed on the Board, and the number of shares to be issued in this public offering does not exceed 68 million shares, raising 2 billion yuan, and the sponsor institution is Anxin Securities.
The proposed public offering of 68 million shares, raising 2 billion yuan, will be used for "240,000 t/a epoxy resin integrated circular economic transformation and high-salt wastewater integrated utilization demonstration project" and "supplementary liquidity project" . As of the date of signing of this prospecto, the company has obtained a total of 8 national invention patents, 5 utility model patents, 5 invention patents in the application.
date of the signing of this prospecto, Runhua Investment directly owns 59.97 percent of the company and is the controlling shareholder of the company. Fang Fuliang, Chen Pingping and their daughter, Ms. Fang Xin, control 85.38 percent of the company through direct shareholding and indirect control of Partners such as Runhua Investment, Donggang Investment, Ningbo Renyang, Ningbo Zhiyang, Ningbo Xinyang and Ningbo Hongkang, and are the actual controllers of the company.
prospectine shows that the company is a high-tech enterprise specializing in the research and development, production and sale of epoxy chloropropane, the main products are epoxy chloropropane. Epoxy chloropropane, mainly used in the production of epoxy resin, epoxy resin downstream areas are mainly coatings, electrical and electronic, composite materials and adhesives. Epoxy chloropropane can also be used in synthetic curing agent TGIC, solvents, thinners, chlorol rubber, polyether polyols, cation etherizers, pharmaceutical intermediates, surfactants, etc. In addition to ethylene chloropropane, the company's other main business income is mainly calcium oxide, by-product of calcium chloride external sales of income.
2017-September 2020, operating income was RMB54,074.81 million, RMB 80,578.25 million, RMB112,914.26 million and RMB75,6 Net profit attributable to the owners of the parent company was RMB10,418.51 million, RMB14,702.98 million, RMB32,691.68 million and RMB20,450.23 million, respectively.
reporting period, the proportion of main business income to operating income was 91.94 percent, 87.94 percent, 96.18 percent and 95.02 percent, respectively, while other business income accounted for 8.06 percent, 12.06 percent, 3.82 percent and 4.98 percent of operating income, respectively.
reporting period, the company's operating expenses were RMB37,347.75 million, RMB56,600.65 million, RMB58,902.09 million and RMB44 Of this total, 038.94 million yuan, the proportion of direct materials to operating costs was 72.38 percent, 78.49 percent, 74.09 percent and 70.43 percent, respectively. Direct materials mainly include glycelycer, hydrogen chloride and calcium hydroxide, and the purchase price of these raw materials is the main factor affecting the company's costs.
company's top five customers have a significant impact on the company's development
It is understood that during the reporting period, the company's customers are mainly epoxy resin manufacturers and chemical products traders. The top five customers' sales revenue accounted for 74.91 percent, 83.10 percent, 78.39 percent and 74.82 percent of current sales revenue, respectively.
Huanyang shares said that the company's customers are relatively concentrated, mainly because, first, the company's limited production capacity, in order to meet the needs of direct customers such as Balling Petrochemical, Hongchang Electronics, Guodu Chemical, the remaining limited capacity, in order to win the recognition of a wider range of customers, expand brand awareness, further develop the market, the company year-round with the industry's major traders to maintain stable cooperative relations, the products sold to large and medium-sized downstream customers;
In the case of the major customer's sales revenue, if the company does not meet the requirements of the main customer because of the quality of products and services, resulting in adverse changes in the relationship between the two sides, such as the decline in the market share of the main customer led to a decrease in its procurement volume, downstream industry growth slows down, the main customer due to the operating conditions of a greater risk, no renewal, default, etc. , and the company in the short term can not open up new customers, will adversely affect the company's development.
Core products accounted for higher operating income
In addition, The shares were mainly engaged in the research and development, production and sales of epoxy chloropropane, and during the reporting period, the sales revenue of core products epoxy chloropropane accounted for 89.35 percent, 86.75 percent, 94.57 percent and 91.16 percent, respectively.
2017-2019, the domestic market share of ICCH production was 8.84%, 9.96% and 14.07%, respectively. In terms of price, the average price of epoxy chloropropane decreased significantly in 2020, with an average price of 8476.21 yuan/tonne in the previous September, while the average price in 2019 was 10,857.57 yuan/tonne, a decrease of 21.93%.
Said that although the company has been actively layout the carbon three industrial chain, investment in the construction of epoxy resin, calcium hydroxide production line, and actively achieve the integration of the upstream and downstream of the industrial chain, but in the future, epoxy chloropropane is still the company's main source of operating income, if there are major changes in the downstream market of epoxy chloropropane, will adversely affect the company's profitability.
Ningbo Ring Ocean New Materials Co., Ltd. to scientific and technological innovation as a means to resource-efficient, recycling-oriented, green environmental protection as the development goal. Is engaged in the national "12th Five-Year Plan" focus on encouraging the development of glycelaxe legal epoxy propane and follow-up chemical resin-based composites research and development, production and sales of high-tech enterprises. The acceptance of the IPO of The Company's shares means that if the capital reserves can be increased through the IPO, it will undoubtedly lay a solid foundation for the company's subsequent business development.
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