On March 6, Xinfengming Group Co., Ltd. pre-disclosed the “Initial Public Offering Prospectus of Xinfengming Group Co., Ltd.” on the website of the China Securities Regulatory Commission. According to Article 21 of the Securities Law and the Initial Public Offering According to Article 58 of the “Administrative Measures for the Consolidation and Listing of Stocks” and Article 40 of the “Administrative Measures for the Initial Public Offering and Listing of Stocks on the GEM”, after the application documents are accepted and before the issuance review committee reviews them, the issuer shall submit the prospectus ( Application draft) is disclosed in advance on the China Securities Regulatory Commission website. This means that following Hengli’s backdoor listing, another giant in the polyester industry may soon land in the capital market.
Xinfengming Group’s importance in the domestic polyester industry
The author noticed that in terms of scale, Xinfengming Group’s overall polyester filament production capacity project is not as good as the current five major domestic polyester listed companies: Tongkun Co., Ltd. (601233.SH), Hengyi Petrochemical (000703.SZ), Rongsheng Petrochemical ( 002493.SZ) and Hengli Holdings (600346.SH), ranking behind them in the industry.
However, in terms of polyester filament product segmentation, according to the Xinfengming Group prospectus, there are currently 30 companies with an annual POY production capacity of more than 100,000 tons in my country, among which companies with an annual production capacity of 100,000-250,000 tons are There are 3 companies with annual production capacity of 500,000-1 million tons, and only 2 companies with annual production capacity of more than 1 million tons. Xinfengming POY production capacity has reached 2.11 million tons, ranking second among domestic POY production capacity companies. From the perspective of POY production capacity distribution, Xinfengming has obvious scale advantages.
my country’s POY production capacity and enterprises with an annual output of more than 500,000 tons
Xinfengming also has a comparative advantage in the field of FDY. It is understood that there are 20 companies with an FDY production capacity of more than 100,000 tons in my country, of which 13 companies have an annual production capacity between 100,000 and 400,000 tons, and there are 400,000 tons of companies with an annual production capacity. 7 homes.
Enterprises with an annual output of 400,000 tons of FDY and above and their production capacity
Xinfengming Group’s competitiveness in the domestic polyester industry
According to statistics from the China Chemical Fiber Industry Association, there were 776 companies in China’s polyester industry with revenue of more than 20 million yuan in 2015, including Xinfengming Group, Tongkun Co., Ltd., Rongsheng Petrochemical, Hengli Co., Ltd., Hengyi Petrochemical and Shenghong The Group has competitive advantages in scale, management, brand and innovation. According to statistics from the China Chemical Fiber Industry Association, from 2013 to 2015, the market shares of major domestic polyester filament manufacturers were as follows:
At the beginning of 2017, various polyester-related listed companies have announced their net profits in 2016. For example, Zhongxin Fengming will pre-disclose its profit before interest, tax, discount and amortization of 1,866,529,200 yuan. Comparing the profits among these companies, The situation is also quite impressive.
When the waves wash away the sand, the survivors will eventually become kings
Xinfengming Group is not the only one actively seeking to go public. Since last year, with the exception of Hengli Group’s backdoor listing, many domestic polyester companies such as Shenghong Group have begun sprinting for IPOs.
In recent years, the development of the polyester industry has been extremely unstable. Some leading companies such as Hengli and Tongkun have grown bigger and bigger, and have entered the petrochemical field. On the other hand, the cruel market status has also made other leading companies such as Far East Petrochemical, Hongjian Group and others have withdrawn from the market. From entering the petrochemical field to seeking to go public, polyester companies are actually looking for a way out. How can we effectively consolidate the market and make ourselves stronger? In the sluggish environment of the industry in recent years, companies have a very strong thirst for funds, so it is reasonable to seek listing. On the other hand, from the perspective of the strategic planning of leading companies, listing financing is a quick way for physical polyester companies to expand their capabilities and improve their competitiveness.
Of course, the competition in the polyester market is becoming increasingly fierce. From the initial production capacity preparations to the leading companies engaged in refining, and now the competition to go public. In general, the market has formed obvious differentiation after 2015. Small and medium-sized polyester companies “jumped over the dragon’s gate”, while some leading companies fell on the beach. The big fish in the polyester industry ate up the small fish, and the big fish died. There are more and more situations, and only the leftover can finally become the king. We will wait and see who will be the final winner and who will be eliminated!
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