Stock abbreviation: China catalyst Stock Code: 688267 China catalyst new materials Co., Ltd
China Catalyst Holding Co.,Ltd.
Songmudao chemical park, puwan new area, Dalian, Liaoning Province
Initial public offering announcement of Kechuang board
Sponsor (lead underwriter)
Room 2004, 20th floor, Dacheng International Building, No. 358, Beijing South Road, high tech Zone (new urban area), Urumqi, Xinjiang February 15, 2002
hot tip
The shares of China catalyst new materials Co., Ltd. (hereinafter referred to as “China catalyst”, “the company”, “the issuer” or “the company”) will be listed on the science and Innovation Board of Shanghai Stock Exchange on February 16, 2022. The company reminds investors to fully understand the risks in the stock market and the risk factors disclosed by the company, and avoid blindly following the trend of “speculation” in the initial stage of new share listing, We should make prudent decisions and invest rationally.
The value of this listing announcement is usually reserved to two decimal places. If the total number is inconsistent with the mantissa of the sum of the values of each sub item, it is caused by rounding.
Section I important statements and tips
1、 Important statement
The company and all directors, supervisors and senior managers guarantee that the information disclosed in the listing announcement is true, accurate and complete, promise that there are no false records, misleading statements or major omissions in the listing announcement, and bear legal liabilities according to law.
The opinions of Shanghai Stock Exchange and relevant government authorities on the listing of the issuer’s shares and related matters do not indicate any guarantee to the issuer.
The company reminds investors to carefully read and publish on the website of Shanghai Stock Exchange（ http://www.sse.com.cn. ）The contents of the “risk factors” chapter of the company’s prospectus should pay attention to risks, make prudent decisions and make rational investment.
The company reminds the majority of investors to pay attention to the relevant contents not involved in this listing announcement. Please refer to the full text of the company’s prospectus.
Unless otherwise specified, the definitions of abbreviations or terms in this listing announcement are the same as those in the prospectus of the company’s initial public offering of shares.
The company reminds investors to pay attention to the investment risks in the initial stage of IPO (hereinafter referred to as “new shares”), and investors should fully understand the risks and rationally participate in the trading of new shares.
2、 Special tips on investment risks at the initial stage of IPO
The company’s shares will be listed on the science and Innovation Board of Shanghai Stock Exchange on February 16, 2022. The company reminds investors to fully understand the risks of the stock market and the risk factors disclosed by the company, avoid blindly following the trend of “speculation” in the initial stage of IPO, and make prudent decision and rational investment. The company’s special tips on relevant risks are as follows:
(I) risk of stock trading on Kechuang board
The main board of Shanghai Stock Exchange and the main board of Shenzhen Stock Exchange are limited to 44% increase and 36% decrease on the first day of listing, and then 10% increase and decrease.
There is no price limit for the first five trading days after the listing of the shares listed in the initial public offering of the science and innovation board; After the first five trading days, the exchange imposed a price limit of 20% on the competitive trading of shares on the science and innovation board. The Kechuang board further relaxed the restrictions on the rise and fall of stocks in the initial stage of listing, and increased the trading risk.
(II) the risk that the price earnings ratio of the company’s issuance is higher than the average level of the same industry
The issue price is 41.90 yuan / share, and the price earnings ratio corresponding to this price is:
1. 64.49 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital before the issuance);
2. 60.29 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital before this issuance);
3. 85.98 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital after this issuance);
4. 80.39 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital after this issuance).
According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, the company belongs to the manufacturing industry of chemical raw materials and chemical products (C26). As of January 26, 2022 (T-3), the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. was 42.78 times. The issuer’s P / E ratio corresponding to the issuance price is 85.98 times (earnings per share is calculated by dividing the audited net profit attributable to the shareholders of the parent company before and after deducting non recurring profits and losses in 2020 by the total share capital after the issuance), which is higher than the average static p / E ratio of the industry in the latest month issued by China Securities Index Co., Ltd, There is a risk that future stock price falls will bring losses to investors.
(III) abnormal stock fluctuation risk
On the first day of listing, the shares on the science and innovation board can be used as the subject of margin trading, which increases the risk of sharp decline in share price caused by increased leveraged margin trading in the early stage of listing, while the main board market of Shanghai stock exchange requires that they can be used as the subject of margin trading after more than three months. In addition, the stock verification system for temporary suspension and serious abnormal fluctuations in the stock trading session of the science and innovation board is different from that of the main board market of the Shanghai Stock Exchange. Draw investors’ attention to relevant risks. After the IPO and listing, in addition to the operation and financial status, the stock price of the company will also be affected by many factors such as the macroeconomic situation outside China, industry conditions, capital market trends, market psychology and various major emergencies. When considering investing in the company’s shares, investors should anticipate the possible investment risks caused by the above factors and make prudent judgments.
(IV) risk of less circulating shares
After this issuance, the total share capital of the company is 176200000 shares, of which 36773182 shares are tradable without sale conditions at the initial stage of listing, accounting for 20.87% of the total share capital after this issuance. At the initial stage of listing, the number of circulating shares is small, and there is a risk of insufficient liquidity.
(V) the shares can be used as the subject matter of margin trading on the first day of listing
On the first day of listing, the shares on the science and innovation board can be used as the subject of margin trading, which may produce certain price fluctuation risk, market risk, margin increase risk and liquidity risk. Price fluctuation risk refers to that margin trading will aggravate the price fluctuation of the underlying stock; Market risk refers to that when investors use stocks as collateral for financing, they need to bear not only the risks caused by the change of the original stock price, but also the risks caused by the change of the stock price of new investment, and pay the corresponding interest; Margin call risk means that investors need to monitor the level of guarantee ratio in the whole process of trading to ensure that it is not lower than the maintenance margin ratio required by margin trading; Liquidity risk refers to that when the price of the underlying stock fluctuates violently, the financed purchase of securities or the repayment of securities, the sale of securities or the repayment of securities may be blocked, resulting in greater liquidity risk.
In addition, the stock verification system for temporary suspension and serious abnormal fluctuations in the stock trading session of the science and innovation board is different from that of the main board market of the Shanghai Stock Exchange. Draw investors’ attention to relevant risks.
3、 Special risk tips
The company reminds investors to carefully read the “section IV Risk Factors” of the prospectus and pay special attention to the following matters:
(I) customer concentration risk
In 2018, 2019, 2020 and January June 2021, the sales of the company’s top five customers accounted for 67.76%, 77.27%, 88.12% and 89.94% of the current operating revenue respectively, showing an upward trend. Among them, the company’s sales revenue from BASF, the largest customer, is 32.4616 million yuan, 197.505 million yuan, 28.18695 million yuan and 250.5205 million yuan respectively, accounting for 19.19%, 59.31%, 69.43% and 77.59% of the company’s operating revenue. The company has the risk of customer concentration and dependence on the largest customer.
During the reporting period, mobile source denitration molecular sieve products were one of the company’s core products, accounting for BASF’s only customer of mobile source denitration molecular sieve products of the issuer. According to relevant agreements, the issuer is the exclusive supplier of mobile source denitration molecular sieve in BASF Asia, and the issuer has business restrictions that mobile source denitration molecular sieve products can only be sold to BASF and its authorized objects. The issuer’s main product mobile source denitration molecular sieve has the risk of dependence on BASF.
If the downstream market demand decreases in the future, the demand for the company’s mobile source denitration molecular sieve products decreases, or the company’s R & D innovation and production supply cannot meet the needs of customers in time, or BASF increases other suppliers, or the global market share of BASF mobile source denitration products declines in the future, it may have a great adverse impact on the company’s business operation and financial status.
(II) there is a risk that the environmental protection regulatory policies of the automobile industry will have a great impact on the sales of the company’s main products
During the reporting period, the income of mobile source denitration molecular sieve products of the company was 16.552 million yuan, 155.2408 million yuan, 254.0167 million yuan and 230.6544 million yuan respectively, accounting for 9.86%, 46.98%, 63.16% and 72.17% of the main business income. Mobile source denitration molecular sieve is used for diesel vehicle exhaust treatment. Its main sales areas include Asia Pacific regions such as China, South Korea, Japan and India and European regions such as Poland. The market development of this product depends on the formulation and strict implementation of relevant exhaust emission regulations.
From 2018 to January June 2021, the national output of diesel vehicles was 2.9487 million, 2.8694 million, 3.5698 million and 1.9593 million respectively. The output of diesel vehicles showed a fluctuating upward trend. According to the notice on the confirmation of national VI emission products of heavy diesel vehicles issued by the Ministry of industry and information technology in 2021, the production and sales of heavy diesel vehicle products that do not meet the requirements of national VI standards will be stopped from July 1, 2021. Compliance with the national six standards is the basic requirement for the product renewal and iteration of automobile host manufacturers. Compliance with the national six standards is a key factor for the competition of relevant enterprises in various exhaust gas treatment fields. The implementation progress and strictness of environmental protection regulatory policies in the automobile industry have a great impact on the sales of mobile source denitration molecular sieve products of the company.
In order to meet the automobile exhaust emission standard, the company has continued to invest in large-scale technology research and development. The application scenarios of mobile source denitration molecular sieve products include the national phase VI B emission standard expected to be implemented in 2023, the “Euro VII” emission standard expected to be implemented in 2025 and other regional emission standards of the same level. If the actual implementation time of the exhaust emission standard is delayed from the original implementation time, or the existing environmental protection regulatory policies of the automotive industry in the main sales area cannot be strictly implemented, it will have an adverse impact on the sales of the issuer’s aforementioned products.
(III) risks caused by iteration direction
The catalyst has a wide range of applications, and new markets and applications are expanding. Product and technological innovation largely depends on the company’s technical level and continuous R & D investment. If competitors launch more efficient, energy-saving and environmental friendly catalyst products and technical services, it will significantly squeeze the market share of the issuer. If the company cannot accurately predict the development trend of products and technologies, respond to customer needs in time, continue technology research and development, and upgrade product performance and structure, the company will gradually lose market competitiveness and have an adverse impact on the company’s operation.
(IV) risk of traditional fuel vehicle market being crowded by new energy vehicles
At present, the company’s mobile source denitration molecular sieve products are applied to the field of mobile source tail gas treatment diesel vehicles, and its market development is highly related to the overall development of the national automobile industry. Benefiting from the support of national policies and the development of industry technology, the new energy vehicle industry represented by pure electric vehicles, plug-in hybrid vehicles and fuel cell vehicles has developed rapidly, and has occupied the traditional fuel vehicle market to a certain extent. According to the statistics of China Automobile Industry Association, the proportion of Shanxi Guoxin Energy Corporation Limited(600617) automobile output in the total automobile output has increased from 2.74% in 2017 to 5.40% in 2020. Although the proportion of new energy vehicles is still low and mainly concentrated in the passenger car market, if new energy vehicles replace traditional fuel vehicles on a large scale in the future, it will have an adverse impact on the sales of the company’s products.
Section 2 stock listing
1、 Review of stock registration and listing
(I) the decision of the CSRC to approve the registration and its main contents
On January 5, 2022, the China Securities Regulatory Commission issued the reply on Approving the registration of initial public offering of shares of China catalyst new materials Co., Ltd. (zjxk [2022] No. 10), agreeing to the registration application of initial public offering of shares of the company.
“I. agree to your company’s application for registration of IPO.
2、 Your company’s current offering plan shall be implemented in strict accordance with the prospectus and offering underwriting plan submitted to Shanghai Stock Exchange.
3、 This reply is valid for 12 months from the date of consent to registration.
4、 From the date of consent to registration to the end of this stock issue, if the company has any major events, it shall timely report to the Shanghai Stock Exchange and deal with them in accordance with relevant regulations. “
(II) the decision of Shanghai Stock Exchange to approve the listing of shares and its main contents
The listing of A-Shares of the company has been approved by the notice on the listing and trading of RMB common shares of China catalyst new materials Co., Ltd. on the science and Innovation Board of Shanghai Stock Exchange (self regulatory decision [2022] No. 41 of Shanghai Stock Exchange). The total share capital of the company’s A-Shares is 176200000 shares (par value of 1.00 yuan per share), of which 36773182 shares have been listed and traded since February 16, 2022. The securities are referred to as “medium catalyst” for short and the securities code is “688267”.
2、 Information related to stock listing
(I) listing place and listing section: Shanghai Stock Exchange science and Innovation Board
(II) listing time: 20
