On September 21, 2017, Zhejiang Taihua new materials Co., Ltd. (hereinafter referred to as “Taihua new materials”), a leading enterprise of China’s nylon textile fabrics, landed on the Shanghai Stock Exchange. The A-share capital of the company is 547.6 million shares, and the number of shares listed this time is 67.6 million. The securities are referred to as “Taihua new materials” for short, and the securities code is “603055”. The total amount of funds raised is 623 million yuan, and the issue price is 9.21 yuan per share. As of September 26, it closed at 17.66 yuan per share
according to the data, Taihua new material is mainly engaged in the R & D, production and sales of nylon filament, nylon grey fabric and nylon finished fabric, and has grown into the leader of nylon textile fabric in China
as one of the important raw materials of textile products, nylon, which belongs to the field of synthetic fiber, is widely used in high-end clothing fabrics, industry, industry and other fields. Compared with other chemical fibers, nylon has outstanding characteristics in strength, wear resistance, moisture absorption and so on. Compared with other chemical fiber fabrics, nylon fabric has stable quality and durable wear, becoming a good choice for outdoor, sports, cold proof, leisure and other clothing fields< Taihua New Material Co., Ltd. has been engaged in nylon weaving business since its establishment on February 21, 2001. 1n the development process of more than ten years, in order to continuously improve the market competitiveness and overall profitability, the company has gradually extended to the upstream and downstream industrial chain while expanding and strengthening the nylon weaving business. At present, it has formed a complete nylon textile industrial chain of nylon spinning, weaving, dyeing and finishing, and is one of the few domestic enterprises in the whole industrial chain of nylon first of all, a complete industrial chain can reduce the operating costs of Companies in this field; Secondly, a complete industrial chain can make it respond quickly to customers’ needs and meet their different needs; Thirdly, a complete industrial chain can ensure the product quality; Finally, and most importantly, the complete industrial chain improves its ability to resist industry risks and profitability with the advantages of a complete nylon textile industry chain composed of nylon filament, nylon grey fabric and nylon finished fabric formed over the years, Taihua new material not only effectively reduces the impact of upstream petrochemical industry fluctuations on its business performance, but also makes the company’s overall profitability stable at a high level according to the prospectus, from 2014 to 2016 and the first half of 2017 (hereinafter referred to as “the report period”), Taihua new materials achieved operating revenue of 1.942 billion yuan, 1.897 billion yuan2.244 billion yuan and 1.304 billion yuan respectively, and net profit of 81 million yuan, 41 million yuan, 228 million yuan and 201 million yuan respectively in the same period according to the latest performance forecast, this high growth trend is expected to continue. According to the company’s operation from January to June 2017, it is estimated that the company’s operating revenue from January to September 2017 will be 1.78 billion yuan t2.03 billion yuan, an increase of 10% to 25% over the same period of last year, benefiting from the increase of gross profit rate and the decrease of financial expenses, From January to September 2017, the net profit attributable to the parent company after deducting non recurring profit and loss was 250 million yuan to 275 million yuan, an increase of 90% to 105% over the same period of last year according to the certificate issued by China Textile 1ndustry Federation in March 2017, Taihua new material is a famous chemical fiber textile enterprise integrating nylon spinning, weaving, dyeing and finishing in the whole industrial chain. 1t is recognized that Taihua new material is a leading enterprise in the subdivision field of nylon fabric in China and has strong strength in nylon fiber production, fabric development, production and sales in terms of industry status, the company has been rated as “national nylon fabric development base” by China Textile 1ndustry Association for many years, and “China functional nylon silk fabric production base” by China filament weaving Association in 2012 and 2015 from 2012 to 2015, the company has been rated as “China’s top 500 textile and garment enterprises in terms of competitiveness”; 1n the 2011-2013 “top 10 competitive enterprises in China’s filament weaving industry”, the company ranked third; The company ranked the third among the top 50 economic benefits of China’s filament weaving industry in 2014; The company ranks second among the top 50 economic benefits of China’s filament weaving industry in 2015 Taihua new materials adheres to the high-end product line, has formed a high reputation in the industry, has established a good cooperative relationship with a large number of well-known brand clothing customers, and the high-quality customer group has laid a solid foundation for the steady development of the company. Through the establishment of end customer feedback mechanism, the company promotes R & D to the front end of the industrial chain for linkage R & D, and enhances the effectiveness of R & D. The company’s strong independent R & D and design strength has won such awards as decathlon, Pathfinder, C & amp; A.H& M. Hailan home, Jordan, Anta, vicero and other well-known brand customers at home and abroad trust, and established a stable cooperative relationship with them. After years of development, the company has cultivated a stable customer base, formed a high reputation among customers, and stable customer resources have also established a foundation for the stable development of the company R & D technology advantage is obvious compared with Huading Co., Ltd., Meida Co., Ltd., Fumao Xingye Co., Ltd., Japan Toray and other industry companies, Taihua new materials is not dominant in the start, but its subsequent growth ability is remarkable it is reported that as the second drafting unit, Taihua new materials participated in revising the industry standard of nylon silk fabric. 1t is worth noting that Fuhua weaving, a subsidiary of the company, is the sampling unit of “chemical fiber index of China Shengze silk market”. As the first drafting unit, it drafted the industry standard of nylon and cotton interwoven dyed fabric, and jointly held the “chemical fiber fabric fashion trend conference” with China Textile information center and national textile product development center for many years, 1t is one of the publishing units of “chemical fiber fabric fashion trend” in China in addition, as of June 30, 2017, Taihua new materials and its holding subsidiaries had 34 invention patents, 94 utility model patents and 1 design patent. Not only has it been rated as “national nylon fabric development base” by China Textile 1ndustry Association for many years, but also as “China functional nylon silk fabric production base” by China filament weaving Association in April 2012 and April 2015. As the second drafting unit, the company participated in revising the industry standard of nylon silk fabric SHEN Weifeng, general manager of Taihua new materials, said that through its own R & D strength and external cooperation, the company has gradually formed its technological advantages in the industry, and has basically established a technological innovation system of technology research and integration of production, teaching and research, so that the company’s technical level remains at the leading level in the domestic industry. At present, the company has formed the core technology with independent intellectual property rights in spinning, weaving, dyeing and finishing, which has obvious technical advantages compared with other companies in the same industry according to the prospectus, the R & D investment of Taihua new materials has increased year by year in the past three years, with the costs of 36.8675 million yuan, 49.2492 million yuan and 56.2636 million yuan respectively. This listing of Taihua new materials also plans to build a new fiber and fabric technology R & D center, which is expected to help enhance the diversity and diversity of product types and enhance the competitiveness of products< According to Shi Qingdao, chairman of Taihua new materials, the product development plan of Taihua new materials is to develop a series of new products in order to grasp the important development trends of high-grade, multi-functional and low-carbon nylon products. The specific research and development contents are as follows: (1) in terms of nylon spinning, we should strengthen the functions of dyeing free, environment-friendly, high strength and wear-resistant, permanent anti ultraviolet, anti-corrosion and anti-corrosion R & D and production of functional fiber products with high simulation and composite properties( 2) 1n terms of nylon grey fabric, we should strengthen the R & D and production of differential products such as absorbable fabric, high-strength fabric and ultra-fine high-density fabric( 3) 1n terms of nylon finished fabrics, we will strengthen the R & D and production of high-end products such as ecological composite fabrics, fluorine-free washable waterproof fabrics, antibacterial medical fabrics and high suction skin friendly fabrics in the future, Taihua new materials will continue to innovate the R & D mode, strengthen the reverse engineering analysis of the industrial chain in the early stage of R & D projects, improve the market pertinence, industrialization rate and commercialization rate of new product R & D, make full use of the advantages of the company’s complete industrial chain, and enhance the collaborative innovation ability of the whole industrial chain of nylon spinning, grey fabric weaving, dyeing and finishing, Form a system integration R & D innovation system. At the same time, the company’s R & D center’s resource investment is increased year by year to provide guarantee for the company to achieve the goal of R & D innovation and development< Shi Qingdao also pointed out that after years of steady development, Taihua new materials has the foundation to implement foreign M & A in terms of technical strength and operation management. Taking this 1PO as an opportunity, on the premise of giving priority to meeting the various resources needed for the rapid development of production and operation, and according to the development strategy and market competition, we will gradually realize the reasonable layout of production bases and the reinforcement of industrial chain advantages through mergers and acquisitions the industry has a bright future many favorable factors, such as industry policy support, strong downstream consumer demand, the cancellation of textile export quota and the successful bid for the 2022 Winter Olympics, have brought huge market opportunities for China’s Nylon industry. All of these will bring more excellent prospects to Taihua new materials that have landed in the capital market according to the prospectus, the funds raised by this 1PO of Taihua new materials will be used for three projects: “annual dyeing 80 million meters of high-grade differential functional nylon fabric expansion project”, “annual finishing 34.5 million meters of high-grade special functional fabric expansion project” and “new fiber and fabric technology research and development center” the company said that after the completion of the project, it will further enhance the company’s vertical industrial chain integration and efficient operation ability, improve the high added value of products, so as to continuously improve the company’s product market competitiveness and market share, and enhance its own anti risk ability it is reported that Taihua new materials has always been focusing on exchanges and cooperation with international counterparts or professional institutions in new product development and technological innovation. The company often conducts technical exchanges with industry experts such as DuPont of the United States, dextar of Germany, Huntsman of the United States, BASF of Germany, TMT of Japan, Tsuda Ju of Japan, Daikin of Japan, bamag of Germany, menfoss of Germany and 3M of the United States, Cooperate with DuPont, BASF and 1NV1STA to develop high-tech products and international popular products Shi Qingdao also said: Taihua new materials will firmly seize the opportunity of the vigorous development of the textile and garment industry, firmly grasp the development direction and goal of differentiation, functionalization, health and fashion of nylon products according to the characteristics and development trend of nylon sub industry, guide the environmental protection road of the industry with health products, and lead the development direction of the industry with innovative technology, To achieve the industry value model with brand service, and strive to become the world’s leading enterprise of nylon fabric< recently, at the product summit of China Textile 1nnovation annual conference 2017, Chen Baojian, chief engineer of national textile product development center, said when talking about the current situation and future trend of nylon product development and application, “in the future, nylon will have a large space to be used in the three fields of home textile, industrial use and military industry; The development of nylon products will make breakthroughs in differential products, regenerated fiber, bio based fiber and stock solution dyed fiber. 1t is hoped that the upstream and downstream enterprises can cooperate in innovation, based on market demand, and produce benefits through cooperation. “< according to China textile industry development report, at present, the annual per capita fiber consumption in developed countries is generally 20-30 kg, while the annual per capita fiber consumption in developing countries is still less than 10 kg. along with