Changyu Group submitted an IPO registration on the Shanghai Stock Exchange to specialize in zirconium products and special nylon products

The Zhitong Finance App learned that on December 22, Changyu Holding Group Co., Ltd. (Changyu Group for short) applied for an IPO review status on the main board of the Shanghai Stock Exchange to “submit registration”. Southwest Securities is its sponsor and plans to raise 700 million yuan.

According to the prospectus, Changyu Group is mainly engaged in R&D, production and sales of zirconium products, special nylon products, and fine chemical products. The main products include zirconium oxychloride, zirconium carbonate, zirconia, nanocomposite zirconia, special nylon, long carbon chain dihydric acid, long carbon chain diethyl alcohol and long carbon chain dimethyl ester, etc.

The company's products are widely used in automotive, communications, consumer electronics, high-performance ceramics, medical and other fields. The company has established a relatively complete sales network and service system, and its products are widely sold in mainland China, Europe, the United States, Japan, South Korea, India, Southeast Asia and other countries and regions. Zirconium products and special nylon products are the main sources of the company's revenue and profit.

The company is a well-known supplier of zirconium products and special nylon products in the industry. The production capacity of zirconium oxychloride is the largest in the world, and the production capacity and variety richness of specialty nylon is leading domestically. In terms of zirconium products, the company currently has a production capacity of 75,000 tons/year of zirconium oxychloride, making it the largest producer of zirconium oxychloride in the world.

Zirconium products are widely used in many fields such as high-performance ceramics, communications, consumer electronics, cosmetics, medicine, catalysts, etc., and are closely related to the economy and people's livelihood, and downstream market demand has remained stable, moderate and positive for a long time. Traditional zirconium product industries such as zirconium oxychloride are mature, production capacity is concentrated, and the competitive pattern is relatively stable.

The company has the largest production capacity of zirconium oxychloride in the world, the largest market share in the world, and occupies an advantageous position in the zirconium products industry. During the reporting period, the sales volume of the company's zirconium products was 52,675.46 tons, 57,322.65 tons, 63,982.44 tons and 34,780.79 tons, respectively. The sales scale of zirconium products remained stable, moderate and positive.

In terms of special nylon products, the company currently has a special nylon polymerization production capacity of 15,000 tons/year. It is a domestic specialty nylon supplier with leading production capacity and a wide variety of products.

After deducting the issuance fee, the funds raised in this offering are intended to be used for the following projects:

On the financial side, in 2022, 2023, 2024 and 2025 as of June 30, Changyu Group achieved revenue of approximately RMB 1,669 million, RMB 1,608 million, RMB 1,638 million, and RMB 896 million respectively; for the same period, net profit was approximately RMB 260 million, RMB 196 million, RMB 215 million and RMB 114 million, respectively.