Core Viewpoint - Binhua Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for various projects, despite facing declining revenue and profitability in its core chlor-alkali chemical segment [1][4]. Group 1: Company Overview - Binhua Co., Ltd. is a comprehensive chemical group in China, primarily engaged in chlor-alkali chemicals, carbon chemicals, and electronic chemicals [2]. - The company claims to be a leader in the chlor-alkali chemical industry, with significant market shares in various products [2]. Group 2: Financial Performance - The company reported revenues of 88.92 billion, 73.06 billion, 102.28 billion, and 73.54 billion for the years 2022, 2023, 2024, and the first half of 2025, respectively [4]. - Net profits for the same periods were 12.03 billion, 3.99 billion, 2.17 billion, and 1.36 billion, indicating a significant drop in profitability despite revenue growth in 2024 [4]. - The gross margin decreased from 26.5% in 2022 to 8.4% in the first half of 2025, a cumulative decline of 18.1 percentage points [4]. Group 3: Revenue Composition - The revenue contribution from chlor-alkali chemicals has been declining, accounting for 90.8%, 88.4%, 59.8%, and 41.9% of total revenue during the reporting period [2]. - Conversely, the revenue share from carbon chemicals increased from 0% to 47.4% over the same period, indicating a shift in the company's revenue sources [2]. Group 4: Market and Supply Chain - Binhua Co., Ltd. distributes its products to over 100 countries, but the majority of its revenue still comes from domestic sales, with overseas revenue contributions of 6.1%, 5.4%, 3.4%, and 2.9% during the reporting period [3]. - The company sources its raw materials from both domestic and international suppliers, with a growing concentration on a few key suppliers [5][6]. Group 5: Capital Raising and Investment Plans - The company has a history of raising capital through various means, including an IPO in A-shares and multiple bond issuances, totaling 54.9 billion raised to date [7]. - A planned 20 billion capital increase in 2023 was later reduced to 14 billion and ultimately terminated in October 2024 [7][8].

Company Overview - Company submitted its IPO application to the Hong Kong Stock Exchange on October 22, 2025, aiming for a dual listing (A+H) [1] - Company is a leading comprehensive chemical group in China, with a revenue of approximately RMB 10.228 billion in 2024 and RMB 7.354 billion in the first half of 2025, representing a year-on-year growth of 61% [2] - The company has been established since 1968 and focuses on technological innovation and green low-carbon development [2] - It holds a leading position in the chlor-alkali chemical industry and has achieved rapid growth in petrochemical and wet electronic chemicals [2] Financial Performance - For the first half of 2025, the company reported a net profit of RMB 136 million, a year-on-year increase of 15% [2] - Revenue for the years ending December 31 for 2022, 2023, and 2024 were approximately RMB 88.92 billion, RMB 73.06 billion, and RMB 102.28 billion respectively [5] - Gross profit for the first half of 2025 was RMB 617 million, reflecting a year-on-year increase of 22.16% [5] Industry Situation - The sales revenue of caustic soda in China increased from RMB 62.3 billion in 2020 to RMB 121.1 billion in 2024, with a compound annual growth rate (CAGR) of 18.1% [7] - The company holds a 1.2% market share in China's caustic soda production and ranks first in the market share for food-grade flake caustic soda at 70.2% [10] - The sales revenue of epoxy propane in China is projected to grow from RMB 25.5 billion in 2020 to RMB 35.9 billion in 2024, with a CAGR of 8.9% [10] Management Structure - The board of directors consists of nine members, including four executive directors, one non-executive director, and four independent non-executive directors [15] - Key executives include the chairman and executive director, who is responsible for overall strategic development and investment planning [16] Shareholding Structure - Prior to the Hong Kong listing, major shareholders include Binzhou and Yi holding 9.90%, and Zhang Zhongzheng holding 5.63% [17]

Core Viewpoint -滨化集团股份有限公司 (滨化股份) is pursuing an IPO on the Hong Kong Stock Exchange, revealing a growth in revenue for 2024 but a decline in profits during the same period, alongside a significant increase in its debt-to-asset ratio, which reached 90.8% by mid-2025 [2][6]. Financial Performance - The revenue figures for滨化股份 from 2022 to 2024 are as follows: RMB 88.92 billion in 2022, RMB 73.06 billion in 2023, RMB 102.28 billion in 2024, and RMB 73.54 billion for the first half of 2025. However, profits decreased from RMB 12.03 billion in 2022 to RMB 2.17 billion in 2024 and further to RMB 1.36 billion in the first half of 2025 [3][4]. - The gross profit margin has significantly declined from 26.5% in 2022 to 6.4% in 2024, with net profit margins also dropping from 13.5% to 2.1% during the same period [7]. Debt and Inventory Management - The debt level of滨化股份 has rapidly increased, with the debt-to-asset ratio rising from 41.9% in 2022 to 90.8% by June 2025 [6][7]. - The company's inventory and contract costs have surged from RMB 580 million in 2022 to RMB 1.072 billion by the end of 2024, marking an 84.8% increase [4][5]. Business Operations and Strategy -滨化股份 operates in three main segments: chlor-alkali chemicals, C3 and C4 chemicals, and wet electronic chemicals, maintaining a leading position in the chlor-alkali chemicals sector and achieving rapid growth in the petrochemical and electronic chemicals fields [3]. - The company plans to utilize the funds raised from the IPO for various projects, including the construction of a source-network-load-storage project, enhancing R&D capabilities, and expanding its overseas sales and service network [7].

Core Viewpoint - This week, seven companies submitted listing applications to the Hong Kong Stock Exchange, with three companies passing the hearing, five companies conducting IPOs, and three new stocks being listed [1]. Group 1: Companies Submitting Listing Applications - Guangdong Jintian Animation Co., Ltd. submitted a listing application on October 20, focusing on the IP fun food industry with a projected revenue of approximately RMB 5.96 billion in 2022, growing to RMB 8.77 billion by 2024 [2]. - Yuwang Biological Nutrition Co., Ltd. is the largest supplier of food-grade refined fish oil globally, with a market share of 8.1% and projected revenues of RMB 5.34 billion in 2022, increasing to RMB 8.32 billion by 2024 [3]. - Binhua Group Co., Ltd. is a leader in the chlor-alkali chemical industry, with revenues of RMB 88.92 billion in 2022, expected to reach RMB 102.28 billion by 2024 [4]. - Xichang Zhihui Mining Co., Ltd. focuses on mining zinc, lead, and copper in Tibet, with revenues of RMB 4.82 billion in 2022, projected to decline to RMB 3.01 billion by 2024 [5]. - Zhongwei Co., Ltd. specializes in new energy battery materials, with total revenues of RMB 303.44 billion in 2022, expected to grow to RMB 402.23 billion by 2024 [6]. - Hehui Optoelectronics Co., Ltd. is a leading AMOLED semiconductor display panel manufacturer, with revenues of RMB 41.91 billion in 2022, projected to reach RMB 49.58 billion by 2024 [7]. Group 2: Companies Passing Hearing - Suzhou Wangshan Wangshui Biomedical Co., Ltd. focuses on small molecule drug development, with revenues of RMB 2 billion in 2022, declining to RMB 322.4 million by 2024 [8]. - Guangdong Tianyu Semiconductor Co., Ltd. is the largest silicon carbide epitaxial wafer manufacturer in China, with revenues of RMB 4.37 billion in 2022, expected to grow to RMB 11.71 billion by 2023 [9]. - Baile Tianheng is a biopharmaceutical company focusing on tumor treatment, with revenues of RMB 7.02 billion in 2022, projected to reach RMB 58.21 billion by 2024 [10]. Group 3: Companies Conducting IPOs - Sany Heavy Industry Co., Ltd. had an oversubscription of 53 times, raising approximately HKD 663 billion (USD 85 billion) [11]. - Dippu Technology Co., Ltd. had an oversubscription of 7590 times, raising HKD 2,721 billion, making it the second-highest oversubscription in history [12]. - Cambridge Technology Co., Ltd. set its final price at HKD 68.88 per share, with significant backing from cornerstone investors [13]. - Bama Tea Co., Ltd. attracted approximately 169,000 subscription applications, with an oversubscription of 2684 times [14]. - Minglue Technology Co., Ltd. plans to issue 721.9 million A shares, with a proposed price of HKD 141.00 per share [15]. Group 4: Newly Listed Stocks - Haixi New Drug Co., Ltd. saw a first-day increase of 20.60%, with a total increase of 26.74% in the first week [15]. - Jushuitan Co., Ltd. had a first-day increase of 23.86%, but saw a decline in the following days, ending the week with a 13.92% increase [16]. - Guanghe Tong Co., Ltd. experienced a first-day drop of 11.72%, with a total decline of 9.44% in the first week [17].

Core Viewpoint - Binhua Group has submitted an application for listing on the Hong Kong Stock Exchange, positioning itself as a leader in the chlor-alkali chemical industry and achieving rapid growth in petrochemical and wet electronic chemicals sectors [1][5]. Company Overview - Binhua Group is a comprehensive chemical group focused on technological innovation and green low-carbon development, established in 1968 with over 50 years of experience in the chemical industry [5]. - The company operates in three core segments: chlor-alkali chemicals, C3 and C4 chemicals, and wet electronic chemicals, with a diverse product portfolio including caustic soda, propylene oxide, MTBE, and electronic-grade hydrofluoric acid [5]. - According to Frost & Sullivan, Binhua Group is the largest producer of granular caustic soda, food-grade flake caustic soda, trichloroethylene, tetrachloroethylene, and chloroprene in China, and the largest private producer of propylene oxide by capacity as of June 30, 2025 [5]. Business Model and Strategy - Binhua Group benefits from abundant upstream resources, including salt and electricity, establishing a diversified and synergistic product ecosystem that covers various downstream applications [6]. - The company implements industrial synergy and resource recycling in its production processes, enhancing resource utilization efficiency, reducing waste emissions, and lowering overall production costs [6]. - Binhua Group is actively promoting an integrated "new energy + chemicals" model to accelerate the green low-carbon transition of energy supply, seizing opportunities from global energy structure transformation and low-carbon economic transition [6]. - The company aligns with China's "dual carbon" strategy, integrating carbon reduction goals into its green development initiatives and has been recognized as a "national green factory" [6]. Financial Performance - Binhua Group's revenue for the fiscal years ending December 31 and the six months ending June 30 for 2022, 2023, 2024, and 2025 are as follows: - 2022: 88.92 billion RMB - 2023: 73.06 billion RMB - 2024: 102.28 billion RMB - 2025 (first half): 73.54 billion RMB [8]. - The company reported a gross profit margin of 26.5% in 2022, which decreased to 16.7% in 2023, and is projected to be 6.4% in 2024 [8]. - Operating profit for 2022 was 1.75 billion RMB, which fell to 635.59 million RMB in 2023, with a projected operating profit of 161.18 million RMB for the first half of 2025 [8].

Core Viewpoint - Binhu Chemical Group has submitted an application for listing on the Hong Kong Stock Exchange, maintaining its leading position in the chlor-alkali chemical industry while achieving rapid growth in petrochemical and electronic chemical sectors [1] Group 1: Company Overview - Binhu Chemical Group is a comprehensive chemical group focused on technological innovation and green low-carbon development, established in 1968 with over 50 years of experience in the chemical industry [1] - The company operates in three core segments: chlor-alkali chemicals, carbon three and four chemicals, and wet electronic chemicals, with a comprehensive product portfolio including caustic soda, propylene oxide, MTBE, and electronic-grade hydrofluoric acid [1] Group 2: Market Position - According to Frost & Sullivan, Binhu Chemical Group is the largest producer of granular caustic soda, food-grade flake caustic soda, trichloroethylene, tetrachloroethylene, and chloropropene in China by revenue in 2024, and the largest private producer of propylene oxide by capacity as of June 30, 2025 [1] - The company is one of the few domestic manufacturers capable of producing electronic-grade hydrofluoric acid for advanced semiconductor processes [1] Group 3: Business Model and Strategy - Binhu Chemical Group has established a diversified and synergistic product ecosystem benefiting from abundant upstream resources, including salt and electricity, covering various downstream applications such as alumina and epoxy resin [2] - The company implements industrial synergy and resource recycling in its production processes, enhancing resource utilization efficiency, reducing waste emissions, and lowering overall production costs, which strengthens its ability to withstand industry cyclicality [2] - The company actively promotes an integrated "new energy + chemicals" model to accelerate the green low-carbon transition of energy supply, seizing opportunities from global energy structure and low-carbon economy transformations [2] - Binhu Chemical Group aligns with China's "dual carbon" strategy, deeply integrating carbon reduction goals into its green development initiatives, and has been recognized as a "national green factory" [2] Group 4: Financial Performance - Binhu Chemical Group's main business involves the production and sales of organic and inorganic chemical products, with revenue from energy sales contributing to its income [3] - The company reported revenues of 8.892 billion RMB, 7.306 billion RMB, 10.228 billion RMB, and 7.354 billion RMB for the fiscal years ending June 30 for 2022, 2023, 2024, and the first half of 2025, respectively [3]