<b>Longhua New Materials IPO meeting, Gao Qing is about to end the history of no listed company</b>

The team of listed companies in Zibo will grow again.

On the evening of December 3, the GEM Listing Committee of the Shenzhen Stock Exchange issued an announcement: Shandong Longhua New Materials Co., Ltd. (hereinafter referred to as Longhua New Materials), Guangdong Kidd New Materials Co., Ltd., Xiamen East Asia Machinery Industry Co., Ltd., Jiangsu Yangdian Technology Co., Ltd. made the first meeting.

This means that after several months of intense waiting, Longhua New Materials, whose registered office is located in Gaoqing County, Zibo City, has finally succeeded in breaking through the IPO.

According to public information, Longhua New Materials, established in 2011, is a domestic professional polyether polyol (PPG) and polymer polyol (POP) large-scale chemical production enterprise with a registered capital of 360 million yuan and a controlling shareholder of Han Zhigang and Han Runze, who are father and son and have signed an action in concert agreement, are the joint actual controllers of the company.

It is reported that the products of Longhua New Material Co., Ltd. cover two categories of products: polyether for soft foam and polyether for CASE, among which polyether for soft foam includes two series of products: POP and general-purpose soft foam polyether. POP products have a high reputation in the polyether industry, and are known as "POP leading enterprises" in the industry.

The title of "POP leading enterprise", the outside world can get a glimpse of it from the draft of its prospectus.

According to the data, in 2019, the company's total sales of polyether products reached 204,600 tons, accounting for about 5.31% of the total consumption of the polyether industry during the same period. From the perspective of product structure, the company's polyether products are mainly mid-to-high-end polyether products. During the reporting period, the company's sales revenue from mid-to-high-end polyether products accounted for 76.46%, 84.97% and 79.8% respectively. The data of its POP products are even more eye-catching. The prospectus disclosed that the sales volume in 2019 was 128,100 tons, accounting for about 22.96% of the total POP consumption in the same period, ranking in the forefront of the industry.

Or because of this, Longhua New Materials is not only a supplier of well-known mattress brands such as Mengbaihe, Xilinmen, and Internox, but also a supplier of shoe materials for shoe factories such as NIKE, adidas, Li Ning, and Anta. At the same time, it also maintains a stable cooperative relationship with seat manufacturers of Yutong Bus, Foton Motor and other car companies.

Based on this, from 2017 to 2019, Longhua New Materials achieved operating income of 1.428 billion yuan, 1.795 billion yuan and 2.026 billion yuan respectively, and net profits attributable to the parent were 60.114 million yuan, 53.0885 million yuan and 93.3161 million yuan respectively The net profits after deducting non-existing expenses were 58.0301 million yuan, 47.5709 million yuan and 94.714 million yuan respectively.

According to the disclosure in the prospectus, Longhua New Materials plans to issue no more than 70 million shares to the public this time, raising 270 million yuan, which is planned to be used for the expansion project of 360,000 tons/year polyether polyol, R&D center, and marketing network construction , and replenish working capital. The project of Longhua New Materials is listed in the list of major projects in Zibo City in 2020.

Qilu Evening News · Qilu Yidian discovered that as early as September 2016, Longhua New Materials had been listed on the New Third Board. On October 30 of the following year, the company submitted an application for counseling and filing for GEM listing to the Shandong Securities Regulatory Bureau. On June 30 this year, Longhua New Materials submitted an application for an initial public offering and listing on the Growth Enterprise Market to the Shenzhen Stock Exchange, and it was officially accepted on July 14.

Now, less than 5 months before the official acceptance, Longhua New Materials is welcoming the moment of successful meeting.

Longhua New Materials is the first IPO company in Gaoqing County, Zibo City, which also means that Zibo, a traditional large agricultural county, will soon end the history of no listed companies.

Qilu Evening News·Qilu Yidian found that since this year, Zibo's capital market has seen constant good news.

Half a month ago, Kaisheng New Materials GEM IPO in Zichuan District successfully passed the IPO meeting, plus on October 27, Zhiyang Innovation, which had its first meeting on the Science and Technology Innovation Board, and Dongyue Silicon Materials, which successfully registered on the GEM on March 12 , This year, one company in Zibo has been successfully listed, and three companies have successfully passed the IPO meeting.