According to the website of the China Securities Regulatory Commission, the CSRC recently approved the initial public offering applications of enterprises such as Chongqing Shunbo Aluminum Alloy Co., Ltd. in accordance with legal procedures, and the company and its underwriters will negotiate with the exchange to determine the issuance schedule and publish the IPO documents one after another. Industry insiders expect that if all goes well, Shunbo alloy will begin a formal IPO next week. At this time, it is only a little more than a month before its July 2 meeting.
According to the application draft of the prospectus (November 18, 2019), Shunbo alloy intends to issue no more than 53 million new shares on the small and medium-sized board of the Shenzhen Stock Exchange, not less than 10% of the total share capital after the issuance, and the total share capital after the issue is 439 million shares, which is expected to raise about 385 million yuan. It is proposed to be invested in the comprehensive utilization project of waste aluminum resources in the company's Hubei base, with an annual production capacity of 200000 tons of aluminum alloy ingots. The sponsor institution (lead underwriter) of the company is Guohai Securities.
Data show that Shunbo alloy's main business is the production and sales of recycled aluminum alloy ingots, and it is one of the leading enterprises with large production scale in the recycled aluminum industry. Compared with domestic small and medium-sized recycled aluminum enterprises, the company has omni-directional competitive advantages in production scale, production equipment, technology, product quality, product types, sales network and management level. Compared with large recycled aluminum enterprises or major competitors, the company has competitive advantages in asset turnover and return on net assets, working capital turnover, diversified production area layout, product application industry diversification and so on. From 2016 to 2018, the company ranked fourth in the industry in terms of output, with a market share of 4.26%, 4.42% and 4.69%, respectively.
Financial data show that by the end of June 2019, Shunbo alloy had total assets of 1.982 billion yuan and net assets of 1.264 billion yuan. From 2016 to 2018 and the first half of 2019, the company realized operating income of 3.065 billion yuan, 3.931 billion yuan, 4.249 billion yuan and 2.019 billion yuan respectively, and the net profits belonging to shareholders of listed companies were 129 million yuan, 161 million yuan, 144 million yuan and 69.5368 million yuan respectively.
Shunbo alloy said that it will continue to expand the regional layout of production and the field of product application, and further expand the South China market with Guangdong as the core and the East China market with Jiangsu and Zhejiang as the core on the basis of consolidating the market in the southwest region. we will vigorously tap the potential market in central China and constantly improve our domestic market share and corporate profitability.
