Changyu Group Approved for 700 Million Yuan IPO on Shanghai Exchange

Changyu Group Co., Ltd. (Changyu Group), a leading manufacturer of zirconium products, specialty nylon products, and fine chemicals, has received approval for its initial public offering (IPO) on the Shanghai Stock Exchange's main board. The company, with West China Securities as its sponsor, aims to raise approximately 700 million yuan through the IPO.

Changyu Group's primary products include zirconium oxychloride, zirconium carbonate, zirconium oxide, nano-composite zirconium oxide, specialty nylon, long-chain dibasic acids, long-chain diols, and long-chain dimethyl esters. These products are widely used in various industries such as automotive, communications, consumer electronics, high-performance ceramics, and medical fields. The company's products are sold extensively across mainland China, Europe, the United States, Japan, South Korea, India, and Southeast Asia.

In the zirconium products sector, Changyu Group boasts a production capacity of 75,000 tons per year for zirconium oxychloride, making it the largest producer globally. In the specialty nylon sector, the company has a production capacity of 15,000 tons per year, leading the domestic market in terms of capacity and product variety.

Revenue contributions from zirconium products have been significant, accounting for 76.17%, 72.43%, and 70.85% of the company's total revenue in the respective reporting periods. These products are the primary drivers of the company's revenue and profits, forming the core of its business operations.

The zirconium products industry is dominated by private enterprises with concentrated production capacities. Traditional zirconium products face stable competition, while high-end new materials like nano-composite zirconium oxide are primarily produced by international giants such as Saint-Gobain of France, First Rare Earths, and Japan's Toso. Domestic producers include National Ceramic Materials, Dongfang Zirconium, and Changyu Group.

In the specialty nylon sector, the diverse range of products leads to a fragmented market with varying product portfolios among competitors. Major players include international chemical giants like DuPont, AkzoNobel, and Winning. These large enterprises control a significant portion of the market share and production capacity. Domestic players are mostly private enterprises with smaller production scales.

Financially, Changyu Group reported revenues of approximately 1.669 billion yuan, 1.607 billion yuan, and 1.637 billion yuan for the years 2022, 2023, and 2024, respectively. The corresponding net profits were approximately 255 million yuan, 189 million yuan, and 208 million yuan for the same periods.