Huigu New Materials Approved for IPO on ChiNext Board

Guangzhou Huigu New Materials Technology Co., Ltd. (Huigu New Materials) has received approval for its initial public offering (IPO) on the ChiNext board, as indicated by the Shenzhen Stock Exchange's official website. The underwriter for this IPO is CITIC Securities Co., Ltd.

Huigu New Materials is a company specializing in the field of high polymer materials. The company focuses on the research, development, production, and sales of functional polymer resins and functional coating materials. These materials are widely used in various industries, including home appliances, packaging, new energy, and electronics. The company's products are known for their excellent performance, stability, and reliability, making them a popular choice among customers.

The approval of Huigu New Materials' IPO on the ChiNext board is a significant milestone for the company, as it will provide it with the necessary capital to further expand its operations and invest in research and development. The company's successful listing on the ChiNext board will also enhance its brand image and market presence, allowing it to better compete with other players in the industry.

According to the prospectus, Huigu New Materials has shown strong financial performance. During the reporting period from 2022 to 2024, the company's revenue was 6.64 billion yuan, 7.17 billion yuan, and 8.17 billion yuan respectively. The comprehensive gross profit margin was 29.56%, 38.51%, and 40.68% respectively. The net profit after deducting non-recurring gains and losses was 268.366 million yuan, 960.114 million yuan, and 1.42 billion yuan respectively.

Huigu New Materials plans to raise approximately 9 billion yuan through this IPO. The funds will be allocated as follows: 4.21 billion yuan for the expansion project of the environmental-friendly coating and resin production line in Qingyuan Huigu New Materials Technology Co., Ltd.; 2 billion yuan for the research and development center project in Qingyuan Huigu New Materials; 0.47 billion yuan for the technological transformation of Huigu New Materials' production line; and 2.5 billion yuan for supplementing working capital.

However, Huigu New Materials acknowledges the risk of high customer concentration in its downstream market. The company's products are primarily used in home appliances, packaging, new energy, and electronics. Major customers include Dingcheng New Materials, Xiamen Baobai, Jin Yu Stock, and Dongyang Light. The company's sales volume of liquid coating materials has increased rapidly, and the sales scale of heat exchanger energy-saving coating materials and metal packaging coating materials has shown a growing trend. This has resulted in the top five customers' sales proportion being 43.65%, 45.72%, and 46.53% respectively, showing an annual increase.