Liaoning Donghe New Materials Co., Ltd. (hereinafter referred to as Donghe New Materials) recently submitted a prospectus to the Shenzhen Stock Exchange for listing on the gem, with Dongguan Securities Co., Ltd as the lead underwriter.
The founders and actors retain a total of 52% of the shares.
The actual control of the company is Bi Shengmin and Bi Yiming, and the company has no controlling shareholder.
The company's predecessor is Haicheng Donghe Refractory Co., Ltd., established by Bi Shengmin and Li Lianmei, which was established on October 19, 2001. The legal representative of Haicheng Donghe Refractory Co., Ltd. is Bi Shengmin, whose business scope is "Manufacturing and sales: fused Magnesia, fused Chromium, Refractory bricks, Refractory Materials, Metallurgical charging, non-metallic Mineral products, Building Materials".
As of the date of signing of this prospectus, Shengmin, chairman and general manager, holds 20.90% of the company's shares; Bi Yiming holds 12.26% of the company's shares; Zhao Quan holds 8.51% of the company's shares; Dong Baohua holds 7.01% of the company's shares; Sun Xizhong holds 3.43% of the company's shares. Together, the five people hold 52.12% of the company's shares.
As of September 23, 2020, the shareholding structure of the Company is shown in the following figure:
Tax incentives account for 20% of total profits
The company is engaged in magnesite flotation, fused magnesium production, shaped refractory products, amorphous refractory products and other magnesium products production-based magnesite resources comprehensive utilization of high-tech enterprises.
The company's main business is the R & D, production and sales of magnesia products based on magnesia refractories, the main products include fused magnesia, lightly burned magnesia, shaped and amorphous refractory products and so on.
As of December 31, 2020, the company has 24 patents, including 3 invention patents.
The refractory products industry has the same degree of competition with domestic magnesium refractory enterprises, forming a competitive pattern of "big industries, small companies". There are nearly 2000 enterprises with production scale of refractory raw materials and products in China, and there are only more than 100 enterprises producing refractory raw materials and products with annual sales income of more than 100 million yuan. the industry with a high degree of marketization has a low degree of industry concentration.
From 2018 to 2020, Donghe New Materials is a high-tech industry, enjoying preferential corporate income tax policies and employment tax incentives for the placement of the disabled account for about 20% of the total profits, accounting for a large proportion.
Revenue and net profit both declined in 2020
From 2018 to 2020, Donghe Xincai achieved operating income of 675 million yuan, 574 million yuan and 516 million yuan.
Among them, the company's main business income was 673 million yuan, 569 million yuan and 511 million yuan respectively, and the main business income accounted for 99.78%, 99.22% and 99% of the company's operating income in each period of the reporting period, respectively. 07% is the main source of revenue for the company.
The company's main business income is mainly fused magnesite, refractory products, tailings light burning powder and magnesite sales income, other business income is mainly electrode powder, coal and other scraps, waste and rental fees and other income. The company's main business income accounts for more than 99% of the operating income.
From 2018 to 2020, the gross profit margin was slightly higher than the industry average, but R & D expenses accounted for a low proportion of revenue. In the same period, the net profit was 72.5411 million yuan, 80.8368 million yuan and 69.8434 million yuan, and the net profit of East and New Materials both declined in 2020.
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