Stock abbreviation: Jiangsu Kuangshun Photosensitivity New-Material Stock Co.Ltd(300537) Stock Code: Jiangsu Kuangshun Photosensitivity New-Material Stock Co.Ltd(300537) Jiangsu Kuangshun Photosensitivity New-Material Stock Co.Ltd(300537)
(No. 18, Huacheng Road, Qingyang Town Industrial Concentration Zone, Jiangyin City, Jiangsu Province)
Issue A-Shares to specific objects in 2021
Scheme demonstration analysis report
(Second Revision)
May, 2002
Jiangsu Kuangshun Photosensitivity New-Material Stock Co.Ltd(300537) (hereinafter referred to as “company” and ” Jiangsu Kuangshun Photosensitivity New-Material Stock Co.Ltd(300537) “) is a company listed on the growth enterprise market of Shenzhen Stock Exchange. In order to meet the capital needs of the implementation of the company’s business strategy and business development, further enhance the company’s capital strength, optimize the capital structure and improve profitability, in accordance with the provisions of relevant laws, regulations and normative documents such as the company law of the people’s Republic of China, the securities law of the people’s Republic of China, the articles of association and the measures for the administration of securities issuance and registration of companies listed on GEM (for Trial Implementation), The company plans to issue no more than 57908275 A shares (including this number) to specific objects, and raise no more than 570 million yuan (including this number). After deducting the issuance expenses, the net amount of the raised funds will be used for “the project with an annual output of 50000 tons of electronic photosensitive materials and supporting materials” and “repayment of bank loans”. 1、 Background and purpose of this offering (I) background of this offering
1. Global industrial transfer promotes the rapid development of China’s PCB ink industry
With the accelerated transfer of global manufacturing industry to China, China’s PCB manufacturing industry has developed rapidly, and China’s private PCB ink suppliers represented by the company have gradually developed and expanded. After years of R & D and technology accumulation, some Chinese suppliers have gradually mastered the synthesis technology of synthetic resin, the key raw material of PCB ink, changing their dependence on imported synthetic resin in the past. At the same time, Chinese enterprises have effectively reduced the product cost and formed a more obvious price competitive advantage through self-research, self production and self-use of synthetic resin. In recent years, due to the disadvantages of transportation distance, service and high production cost faced by foreign suppliers, as well as the continuous improvement of China’s technical level, local enterprises have broken the competitive pattern of foreign enterprises controlling China’s medium and high-end PCB ink industry. As China’s leading manufacturer of PCB photosensitive ink and UV curing coating, the company has gradually become one of the leaders in China’s PCB ink market.
Market scale of China and global PCB industry
800.00 12%
700.00 9.6% 10.1% 10%
600.00 8.40% 8%
500.00 6.7% 6.60% 6%
400.00 4.30%
300.00 4%
200.00 1.5% 2%
100.00 0.6% 0%
2016 2017 2018 2019 2020 2021E 2022E 2023E
Chinese Mainland PCB (USD) global PCB market value (USD) China YoY
Source: prismark
Globally, the trend of PCB production capacity transferring to China is obvious. According to prismark’s statistics, the output value of China’s PCB industry from 2016 to 2020 was in line with the average annual growth rate of about 5.6%, which was higher than the growth rate of the global PCB industry of 3.3%. In 2008, the market share of Chinese Mainland was only 31.11%, which has increased to 56.2% in 2020. In the future, with the comprehensive deepening of China’s information construction, the continuous acceleration of urbanization and the continuous improvement of the degree of marketization, the growth of residents’ income, the expansion of domestic demand and the upgrading of consumption structure, the development of computer, communication equipment, IC packaging, consumer electronics and other industries will gain new impetus, and the development and upgrading of new products will usher in a broader market space for the PCB industry. Driven by the downstream application field, the PCB ink industry will also show a continuous growth trend.
2. With the upgrading of products in the coating industry, there is a huge market space for new environmentally friendly UVB coatings
UV curable coating, also known as UV coating, is composed of oligomers, monomers, photoinitiators, pigments, additives and other components. It refers to a coating in which the photoinitiators decompose and the monomers produce polymerization and crosslinking reaction when exposed to UV radiation, so as to solidify the material into a film. UV curing coatings have excellent comprehensive performance and less environmental pollution. Under the background of the development of the coating industry towards high performance and high environmental protection, its market scale continues to expand.
UV curable coatings do not need to add solvents in the production process, do not emit VOC, and have little environmental pollution; It can be cured at room temperature and can be used for heat sensitive substrate. It has low curing energy consumption and fast film-forming speed. It is suitable for fast assembly line coating; After film forming, the product has good hardness, flexibility, wear resistance, scratch resistance, chemical resistance and gloss, and excellent comprehensive performance. UV curable coating technology started in the 1940s. It has developed for a long time. At this stage, it is relatively mature, and the downstream application fields are constantly expanded.
In the early stage, UV curing coatings were mainly used in the coating field of electronic products such as CD / DVD and Walkman. With the continuous progress of technology, its application field gradually expanded to TV, computer, optical fiber and other products. At this stage, it is also widely used in medical devices, automobiles, wood, plastic products, metal products, paper, fabric, glass, building materials, food packaging, beverage packaging, cosmetics packaging and other industries. UV curing coating has excellent physical and chemical properties, good coating effect, fast curing speed and low pollution. It has become one of the main alternative products of traditional solvent based coatings. It is known as “green coating and environment-friendly coating in the 21st century”. It will usher in a very large market space in the future.
3. With the support of national strategy, China’s photoresist industry ushers in development opportunities
In recent years, against the background of global high-tech development, the Chinese government attaches great importance to the development of semiconductor, flat panel display and PCB industries. In August 2020, the State Council issued several policies to promote the high-quality development of the integrated circuit industry and software industry in the new era, in which a series of optimization measures and corresponding policies were issued for the development environment of the integrated circuit industry to support the development of integrated circuits in finance and taxation, investment, R & D, import and export, talents, intellectual property rights, market policies and international cooperation. In March 2021, the 14th five year plan for national economic and social development of the people’s Republic of China and the outline of long-term objectives for 2035 were officially released, which requires tackling key scientific and technological frontier fields in basic core fields related to national security and development, including integrated circuits. Driven by a series of national dividend policies, China’s semiconductor industry, especially the integrated circuit industry, has a good momentum of development.
Scale and output of China’s integrated circuit Market
Source: National Bureau of statistics, intellectual research consulting
According to the statistics of Zhiyan consulting, from 2015 to 2020, the scale of China’s integrated circuit market increased from 1.1 trillion yuan to 1.6 trillion yuan, and the output increased from more than 100 billion pieces to 261.5 billion pieces, of which the growth rate reached 29.56% in 2020. According to the “made in China 2025”, the local output value of China’s integrated circuits is expected to reach US $183.7 billion in 2030, meeting 75% of China’s market demand. Integrated circuits and related fields have broad market development space in the future.
As a key material in the manufacturing process of the semiconductor industry, the market demand for PCB ink and photoresist has been released rapidly, especially the photoresist output for flat panel display has increased, and the photoresist output in China has shown a steady upward trend. According to the data of toubao Research Institute, China’s photoresist production increased from 63000 tons in 2014 to 90000 tons in 2018 (CAGR is 9.3%), and it is expected that China’s photoresist production is expected to increase by 2023
China photoresist market scale
Source: Industrial Information Network
According to the statistics of industrial information network, from 2015 to 2020, the scale of China’s photoresist market increased from 10 billion yuan to 17.6 billion yuan, of which the annual compound growth rate of PCB output value was 3.5%, which continued to lead the world. Meanwhile, the proportion of China’s PCB output in the world has increased from 15.82% to 43.04%, and its international influence has gradually increased.
Benefiting from the support of China’s dividend policy, Chinese local photoresist manufacturers actively improve the technical level and R & D capacity of photoresist products, and promote the process of photoresist localization. In the future, China is expected to break through the technical barriers of high-end photoresist products and further increase China’s photoresist production. At the same time, the global semiconductor industry, flat panel display and PCB industry are gradually transferred to China, driving the surge in the demand for photoresist in China. China’s photoresist industry has great development space. In addition, under the background of the continuous deepening development of China’s “industry 4.0”, “Internet +” and “made in China 2020”, the demand for photoresist in the downstream application terminal field of the industry is expected to continue to grow, thus promoting the increase of China’s photoresist output. It is expected that China’s photoresist output will reach 238000 tons by 2023, with a broad market development space. (II) purpose of this issuance
1. Optimize and upgrade production capacity and improve business layout
Part of the funds raised from the issuance of shares to specific objects are intended to be used for the project of 50000 tons of electronic photosensitive materials and supporting materials implemented by Jiangxi Guangzhen photosensitive materials Co., Ltd. (hereinafter referred to as “Jiangxi Guangzhen”), a wholly-owned subsidiary of the company, in Longnan City, Jiangxi Province. By building new factories, introducing advanced automatic production equipment and high-end technical talents from abroad, the company has built Jiangxi Guangzhen into a main production base in South China, which is an important layout for the company to base itself on South China, radiate central and East China and other surrounding markets.
The construction of Jiangxi Guangzhen production base, on the one hand, optimizes and upgrades the original production capacity, improves the production capacity of the company’s core products, and meets the growing product demand in the South China market; On the other hand, improve the company’s business layout, provide guarantee for the stability of the company’s product supply facing the regional market, enhance the attraction to customers, and improve the company’s market share.
2. Cut into the photoresist field and build a new business growth point of the company
In addition to optimizing the original ink and coating business, the “50000 tons of electronic photosensitive materials and supporting materials project” actively cuts into the field of photoresist. The main goal is to realize the R & D and industrialization of related products and supporting materials such as integrated circuit photoresist, flat panel display photoresist, photoresist diluent, edge adhesive cleaning agent, etching solution, positive photoresist developer, positive photoresist stripping solution and CMP polishing solution.
After years of research and development and the introduction of technical talents, the technical team of the company has mastered the main technology and production and development process of photoresist and its surrounding supporting materials. In recent years, the company has entrusted Taiwan, China enterprises Guangzhi new materials Co., Ltd. to develop the photoresist project. Up to now, some R & D achievements have been made: the first batch of products of the project have achieved R & D achievements, and have been successfully tested by customers in Taiwan, China. The product performance and quality have met the use needs of customers, and have now entered the stage of technology transfer, product trial production and customer verification. At present, the company’s photoresist team is constantly being established and improved. The company’s photoresist and supporting reagents have been sold in the mainland and received small batch orders. The company has taken lithography technology as the focus of future development. Mastering photoresist technology and implementing industrialization are the needs of the company to comply with national strategy, industrial upgrading and its own development, which is conducive to building new business growth points and realizing the long-term sustainable development of the company.
3. Optimize the company’s financial structure and improve its anti risk ability
In recent years, with the development of the company’s business, the scale of funds required is also increasing, and the electronic chemical industry in which the company is located needs a continuous and large amount of R & D capital investment to develop new technologies and products. It is difficult for the company to meet the capital demand for continuous and rapid business expansion only by relying on internal operation accumulation and external bank loans. 2、 The necessity of the selection of securities issued this time and their varieties (I) the varieties and issuance methods of securities issued this time
The type of shares issued this time is RMB ordinary shares (A shares) listed in China, with a par value of RMB 1.00 per share. The issuance method is to issue to specific objects.
(II) necessity of selection of securities issued this time
1、
