A-share subscription | Zhongxin shares (603091.SH) open subscription The company has a market share of about 16% in the global market for pulp-molded tableware.

On September 6, Zhongxin Shares (603091.SH) started the subscription with an issue price of 26.50 yuan per share, a subscription limit of 80,000 shares, a price-earnings ratio of 11.86 times, and listed on the Shanghai Stock Exchange. CITIC SEC is the sponsor and lead underwriter. The prospectus shows that Zhongxin Shares' main business is the research, development, production, and sales of natural biodegradable plant fiber molded products. They mainly use natural plant fiber materials such as bagasse and bamboo pulp to achieve shaping through mold molding, realizing the shaping effects of vacuum forming and injection molding processes. These products are good alternatives to plastic products and are widely used in the catering, fast-moving consumer goods, medical, and industrial fields. The company's main products are tableware and high-end industrial packaging, with tableware used for dining or similar purposes, including lunch boxes, plates, knives, forks, chopsticks, bowls, cups, etc. Zhongxin Shares sells its products through a direct sales model, with customers mainly including brand customers and trade customers. The company's products are mainly sold overseas, with rapid growth in domestic sales as well. For exports, the company mainly sells to North America, Europe, and other countries and regions, with major customers being large-scale manufacturers of catering and food packaging products such as AmerCareRoyal, Huhtamaki, Sabert, WorldCentric, Eco-Products, BerkEnterprises, ClarkAssociate, etc. For domestic sales, customers are mainly traders, including large supermarkets and well-known chain catering enterprises such as Sam's Club, Hema Fresh, Guangzhou Restaurant Group, Jiawei Duck Neck, etc. The pulp molding industry is rapidly developing under the promotion of policies such as plastic bans, but the current market size is relatively small, with low industry concentration, and mainly composed of small and medium-sized enterprises. With the global trend of plastic restrictions, bans, and the continuous development of carbon reduction, Zhongxin Shares has seized the opportunity for the development of green and environmentally friendly tableware, using its advantages in natural degradable materials, automation equipment, and molding processes to achieve rapid growth. Currently, it has become a large-scale manufacturer of degradable pulp molding tableware. In 2022, according to GrandViewResearch data, the company's market share in the global pulp molded tableware field is about 16%; according to data from the China Pulp and Paper Research Institute, the company's output accounts for 20% of the national output of pulp molded tableware. In terms of finances, in 2020, 2021, 2022, and January-June 2023, Zhongxin Shares achieved operating income of approximately RMB 578 million, 910 million, 1.316 billion, and 605 million respectively, with net profits of approximately 138 million, 119 million, 190 million, and 98.632 million during the period. It is worth noting that Zhongxin Shares mentioned in the prospectus that there is a risk of customer concentration. During the reporting period, the combined sales of the top five customers accounted for 50.92%, 50.55%, 39.34%, and 37.61% of the respective operating income, indicating a relatively concentrated customer base. If there are conflicts with major customers in the future or significant fluctuations in the production and operation of major customers, it may have a negative impact on the company's operations.