DR·HG held the IPO roadshow of the Beijing Stock Exchange. Chairman Sun Lihui: After raising funds and expanding production, profitability and market position will be further improved


Published on:

2023-04-06

On April 4, Shandong Huayang Deere Chemicals Co., Ltd. ("DR·HG") publicly issued shares to unspecified qualified investors and listed on the Beijing Stock Exchange. The online roadshow was held on China Securities Journal. Zhongzheng.com.

On April 4, Shandong Huayang Deere Chemicals Co., Ltd. ("DR·HG") publicly issued shares to unspecified qualified investors and listed on the Beijing Stock Exchange. The online roadshow was held on China Securities Journal. Zhongzheng.com.

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DR·HG was established in 2001. The company's main products include nitric acid, potassium nitrate, magnesium nitrate, nitro water-soluble fertilizer, etc. The products are widely used in solar thermal power generation and energy storage, chemical industry, chemical fertilizer, military industry, electronic component manufacturing and other fields. At present, the company's molten salt grade high-purity potassium nitrate has reached the mass production level and has been put on the market, and will become a new growth point for the company's performance in the future. After investigation and detailed market research, the company decided to build a complete set of production equipment, adopting continuous technological innovation to take into account fine management and large-scale production, reduce the production cost of products, and finally sell high-quality products to customers through long-term accumulated sales channels way to earn income.

Sun Lihui, chairman of Deere Chemicals, said that the net amount of the actual funds raised in this public offering of shares after deducting the corresponding issuance expenses is planned to be invested in a molten salt energy storage project with an annual output of 200,000 tons (Phase I), and a new 100,000 tons/year two Sodium production unit, 200,000 tons/year molten salt composite unit. The fund-raising investment project is mainly aimed at the expansion and improvement of the company's main business. With the construction of the molten salt energy storage project (Phase I) with an annual output of 200,000 tons of fundraising projects, the company's product line will be further enriched, and its profitability and market position will be further improved.

The company intends to publicly issue no more than 34.5 million ordinary shares (if the over-allotment option is exercised in full). Specifically: no more than 30 million shares (without considering the over-allotment option); during the issuance process, the company and the lead underwriter adopt the over-allotment option, and the number of over-allotment shares shall not exceed the number of shares issued without considering the over-allotment option 15% of the size (i.e. no more than 4.5 million shares).

The investment project with the funds raised this time closely revolves around the company's main business to meet the emerging needs of the rapidly growing molten salt energy storage market, which is in line with the national industrial policy and development plan. After the project is completed and put into operation, the company will have the mass production capacity of high value-added molten salt products, and the existing industrial chain centered on nitric acid will be further extended downstream to form an integrated pattern of "nitric acid-high-purity potassium nitrate-molten salt". Overall, it is beneficial for the company to consolidate its main business, optimize its industrial structure, and improve its profitability, which is in line with the company's long-term sustainable development needs.

According to the current plan, the company's stock purchase date is April 6, 2023.

According to the relevant provisions of the "Stock Listing Rules on the Beijing Stock Exchange (Trial)", the company's listing criteria are: the market value is not less than 200 million yuan, the net profit in the last two years is not less than 15 million yuan, and the weighted average return on net assets The average is not less than 8%, or the net profit in the most recent year is not less than 25 million yuan and the weighted average return on equity is not less than 8%.