On February 16, the China Securities Regulatory Commission (CSRC) approved the registration of Hangzhou Heshun Technology Co., Ltd. (hereinafter referred to as Heshun Technology) for the initial public offering of shares, and Heshun Technology is expected to be listed on the Growth Enterprise Market of the Shenzhen Stock Exchange in the near future.
According to the prospectus, Heshun Technology plans to raise 615 million yuan for the GEM, of which 436 million yuan is used for the construction of the biaxially oriented polyester film production base, 78.55 million yuan is used for the construction project of the R&D center, and 100 million yuan is used for the supplementary working capital project.
A high-tech enterprise focusing on polyester film
Heshun Technology is a high-tech enterprise focusing on the research and development, production and sales of differentiated and functional biaxially oriented polyester film (BOPET film), which can produce polyester film products of various specifications, models and different uses according to the differentiated needs of customers, the main products include non-ferrous photoelectric base film, transparent film and other functional films.
After nearly 20 years of deep cultivation, the company has become a professional provider of differentiated and functional products with strong competitiveness in the field of polyester film, and the products are in short supply and sell well throughout the country.
It is understood that the main product of Heshun Technology BOPET film has excellent electrical, magnetic, mechanical and chemical functions, in electronics, photovoltaic, optical, packaging, construction, automotive, aerospace and other fields have a wide range of applications, in recent years the market demand has increased significantly. The main products are non-ferrous photoelectric based film, transparent film and other major products downstream market development is relatively fast, the product has sufficient market development space.
With the continuous growth of market size, the revenue of Heshun Technology has also achieved rapid growth in recent years. According to the prospectus, in 2018, 2019 and 2020, the revenue of Heshun Technology was 184 million yuan, 237 million yuan and 377 million yuan, respectively, and the net profit was 22.319 million yuan, 35.858 million yuan and 74.17 million yuan, respectively.
In 2021, the company once again achieved a high increase in performance, achieving operating income of 640 million yuan, net profit of 124 million yuan, and deducting non-net profit of 120 million yuan, an increase of 69.66%, 66.76% and 67.26% respectively over the same period of the previous year. The main reason is that in 2020, Heshun Technology's Line 4 and Line 5 will be put into operation one after another, and the total production capacity will increase to 42,000 tons/year. The substantial increase in production capacity has also brought the performance of Heshun Technology to a new level.
The products have high technical content and rich variety
As a science and technology enterprise in Zhejiang Province, Heshun Technology has strong technical research and development strength. Since its inception, the company has been focusing on the research and development, production and sales of differentiated and functional polyester film, in the process upgrade, new and old product technology update has accumulated a number of patents and core technologies, has mastered such as biaxially oriented colored film manufacturing technology, colored film formulation technology, multi-functional window film base film manufacturing technology and successfully realized industrialization.
Up to now, Heshun Technology has obtained a total of 49 patents, including 11 invention patents, and a total of 3 products have won the Zhejiang Provincial Industrial New Product (New Technology) Award. With relatively strong technical advantages, the company has successfully developed and mass-produced differentiated and functional polyester film products, which have strong market competitiveness and gross profit margins are always at a high level.
Through years of practice and exploration in the field of polyester film, Heshun Technology will focus on the market segment of differentiated and functional polyester film, the company's products have high technical content, rich variety, and high market position, thus effectively avoiding the competition with peer enterprises in low-end products "Red Sea".
The continuous leading position of technology is also inseparable from Shun Technology's continuous increase in R&D investment. During the reporting period, the proportion of the company's R&D expenditure to operating income remained at a high level. According to the prospectus, in each period of the reporting period, the R&D expenses of Heshun Technology were 10.6323 million yuan, 11.2189 million yuan and 15.3654 million yuan, accounting for 5.79%, 4.74% and 4.08% of the operating income of the current period, respectively, which was at a high level in the industry.
In addition, in recent years, Heshun Technology has also continuously increased the research and development of new products, such as taking the field of non-ferrous photoelectric base film and transparent film as the base point, gradually increasing the expansion of window film, flame retardant film and other functional film fields, while paying close attention to the new technologies, new models and new formats of the polyester film industry, and driving the rapid growth of future performance through continuous scientific and technological innovation, model innovation and format innovation.
The growth potential of "domestic substitution" is large
Polyester film is one of the new industrial materials with development potential at present, with excellent mechanical properties, dimensional stability, insulation and flame retardancy, etc., the application field is very extensive, involving all aspects of social production and life. In recent years, the application field of polyester film has been expanding, and it has been widely used in many fields such as consumer electronics, electrical and electrical, optics and packaging decoration. The expansion of the field of application of thin films and the substitution of polyester film for other traditional materials have made its market demand potential huge.
As a populous country, with the development of the economy and the continuous improvement of people's living standards, the demand for polyester film-related products is also growing. Relevant data show that the mainland polyester film production capacity and output are in the forefront of the world, but the production capacity of high-end products is insufficient, and it is still necessary to import 300,000 tons of polyester film every year, mainly high-end polyester film used in electronic products, such as optical base film.
At present, foreign manufacturers are in a dominant position in the industry competition with their technical advantages, especially in the high-end field, limited by the relatively weak accumulation of technology, and domestic polyester film manufacturers are generally facing a more severe market competition situation.
At present, the national policy vigorously encourages the development of the high-end polyester film industry, and the relevant departments of the state have promulgated a series of policies to provide favorable support for the development of the industry and create a good space for development. Domestic polyester film enterprises are also through increasing innovation and research and development to change the high-end functional polyester film market demand is large, low localization of the status quo, the current polyester film "domestic substitution" road can be said to have broad space for development.
As an excellent representative of the industry, with nearly 20 years of deep cultivation, Heshun Technology has made efforts to "domestically replace" polyester film high-end products. At present, it has gradually formed a differentiated competitive strategy of "colored photoelectric base film as the leading and transparent film as a supplement", and has achieved a strong competitive advantage in the field of non-ferrous photoelectric base film by relying on technology accumulation and market reputation, and is also actively expanding other functional film fields such as window film and flame retardant film.
In view of the future development plan, Heshun Technology said that it will take this listing as an opportunity for development, make full use of the raised funds to improve the production capacity of existing polyester film products, establish a research and development center through the investment of the raised funds and the continuous construction of the company, absorb and train more industrial and technological innovation talents, and provide technical support and reserves for the sustainable development of the company. At the same time, expand market share, continue to maintain a leading position in the differentiated polyester film industry, and contribute to the development of China's polyester film industry!