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To-be Listed
Name
/
Code
Industry Offer Price Lot Size Entry Fee Closing Date
Grey Market Date
Listing Date
REFIRE
02570.HK
Electrical Components & Equipment 145-165 20 3,333 2024/12/03 2024/12/05 2024/12/06
Dmall
02586.HK
Application Software 30.21 100 N/A 2024/12/03 2024/12/05 2024/12/06
Mao Geping
01318.HK
Beauty & Toiletries Products and Services 26.3-29.8 100 3,010 2024/12/05 2024/12/09 2024/12/10
Summary
We are a renowned toluene derivative products provider in the PRC and the global market, primarily focusing on the manufacture of toluene oxidation and chlorination products, benzoic acid ammonification products and other fine chemical products through organic synthesis process. Our toluene derivative products are primarily used for food preservatives, household chemicals, animal feed acidifier and synthetic intermediates for agrochemical and pharmaceutical uses. Leveraging our PRC-based product development and manufacturing capabilities, we market and sell our products in over 70 countries. Under the leadership of our experienced management team, we will continue to leverage our product development and manufacturing capabilities and global sales network to increase our market shares and strengthen our industry position in China and globally.

Our leading position in toluene oxidation and toluene chlorination products is substantiated by our industry ranking and market share in the PRC and the global market. According to the Frost & Sullivan Report, our Group ranked as the largest manufacturer for both benzoic acid and sodium benzoate and the second largest benzyl alcohol manufacturer in the PRC in terms of the sales revenue in 2023, representing 62.0%, 37.9% and 33.9% of the PRC total market revenue in 2023, respectively. In the global market, we ranked second place among manufacturers for benzoic acid and sodium benzoate and third place among manufacturers for benzyl alcohol in 2023, accounting for 37.0%, 22.4% and 20.6% of the global total market revenue in 2023, respectively.

As of the Latest Practicable Date, we had a self-produced product portfolio primarily consisting of five toluene oxidation products, two toluene chlorination products, two benzoic acid ammonification products and more than 20 types of other fine chemical products for broad market uses. In 2021, 2022 and 2023, we recorded sales volume of approximately 362,302 tons, 375,848 tons and 346,147 tons of products, respectively. Our products are widely recognized around the world. We are the contracted supplier of many renowned global companies, including a number of Fortune 500 companies and regional industry participants. We have established long-term business relationships with these companies, which enable our customers to procure products at competitive prices while providing us with a solid customer base. Sales to our Fortune 500 customers contributed approximately 7.6%, 8.5% and 10.5% of our total revenue for the years ended December 31, 2021, 2022 and 2023. While our existing products enjoy broad market appeal and use, we strive to maintain our competitive advantages by allocating additional resources to product development to ensure a growing portfolio of products to our customers.

For the years ended December 31, 2021, 2022 and 2023, we generated revenue of RMB2,789.5 million, RMB3,133.8 million and RMB2,677.1 million, respectively, and generated RMB309.1 million, RMB340.5 million and RMB72.9 million, respectively, in net profits for the corresponding periods.

Sales of self-produced products. Our revenue was primarily generated from sales of our self-produced products, which include revenues from toluene oxidation product sales, toluene chlorination product sales, benzoic acid ammonification product sales and other fine chemical product sales. Revenue contribution from sales of self-produced products accounted for 79.4%, 86.8% and 83.0% of our total revenue for the years ended December 31, 2021, 2022 and 2023, respectively. Our total revenue decreased by 14.6% from RMB3,133.8 million in 2022 to RMB2,677.1 million in 2023 due the general decline in market demands for our products coupled with the increase in market supply of toluene oxidation products, resulting in the drop in both sales volume and average selling price of our products. For detailed analysis on the fluctuations of the revenue and gross profit margin of our business operation in 2023, please refer to “— Our Business Operating Data” and “Financial Information — Discussion of Results of Operations” in this document.

Products trading. We engage in products trading to supplement our primary production operations and sales. We categorize our products trading by toluene product trading and other products trading. Revenue contribution from products trading accounted for 20.6%, 13.2% and 17.0% of our total revenue for the years ended December 31, 2021, 2022 and 2023, respectively. Our revenue generated from products trading decreased by 28.4% from RMB575.9 million in 2021 to RMB412.3 million in 2022 as a result of the decrease in trading volume of petroleum toluene from approximately 112,272 tons to 54,823 tons in the corresponding years. This decrease in sales volume and overall revenue was due to our increased internal demand for petroleum toluene for our production needs and market fluctuations in 2022. The trading volume of petroleum toluene further decreased to 49,295 tons in 2023 primarily due to the reduction in our procurement in light of the unfavorable market sentiment in the chemical industry which in turn reduces the volume of petroleum toluene available for trading.

Following the implementation of our future plans and completion of the Global Offering,, our Directors believe that we will continue to maintain our market ranking in toluene oxidation and toluene chlorination products and successfully expand our business operations in the toluene derivative products industry in the PRC and the global market. We believe that we are well-positioned to explore opportunities in the larger organic synthetic chemical market with our competitive strengths, existing capabilities and strategic planning.



Source: Wuhan Youji Hold (02881) Prospectus (IPO Date : 2024/06/07)
Listing Market MAIN
Industry Diversified Chemicals
Background Others
Major Business Area N/A
Corporate Information
Substantial Shareholders Gao Lei (53.75%)
Shen Yingming (13.44%)
Custodian Capital Ltd. (7.79%)
Directors Zou Xiaohong (Chairman and Executive Director)
Chen Ping (Executive Director)
Gao Lei (Non-Executive Director)
Li Deye (Non-Executive Director)
Shen Yingming (Non-Executive Director)
Liu Kai Yu Kenneth (Independent Non-Executive Director)
Liu Zhongdong (Independent Non-Executive Director)
Yuan Kang (Independent Non-Executive Director)
Company Secretary Chen Ping
Lai Ho Yan
Principal Bankers Bank of Communications Co., Ltd.
Agricultural Bank of China Limited
Bank of Hankou
Rural Commercial Bank
Solicitors DeHeng Law Offices
Jingtian & Gongcheng
Paul Hastings
Travers Thorp Alberga
Auditors Ernst & Young
Registered Office 5th Floor, Manulife Place 348 Kwun Tong Road, Kowloon, Hong Kong
Share Registrars Tricor Investor Services Ltd. [Tel: (852) 2980-1333]
Share Registrars Tel No (852) 2980-1333
Internet Address http://www.chinaorganic.com
Email Address [email protected]
Tel No (86 27) 8384-0060
Fax No
 
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