High-temperature special alloy producer Shangda Corporation (301522.SZ) plans to publicly issue 92,966,700 shares for the first time.

Shangda Group (301522.SZ) has announced the public offering and listing on the GEM of its shares for the first time, with a planned public offering of 92.9667 million shares (accounting for approximately 25% of the total share capital after this issuance). The shares offered in this issuance are all new shares offered to the public, and existing shareholders of the company will not be selling their shares. The preliminary inquiry date is September 25, 2024, and the subscription date is September 30, 2024. The company is mainly engaged in the research, production, and sale of special alloy products such as high-temperature and high-performance alloys, high-quality special stainless steel, etc., achieving high-quality, low-cost, and short-cycle production and delivery of national key strategic materials such as high-temperature alloys. The main delivery forms of the products are free forgings such as forged bars, forged flats, forged discs, forged rings, forged shafts, etc. The company's products are widely used in the production of high-end equipment in military and civilian fields such as aerospace, gas turbines and steam turbines, nuclear engineering, petrochemicals, etc. During the reporting period, the company's revenue from high-temperature alloys and military products grew rapidly, becoming the main source of profit and an important driver of performance growth for the company. Since its establishment, the company has been committed to bridging the significant gap between special alloy materials represented by high-temperature alloys in China and developed countries, achieving major breakthroughs in the preparation of high-return recycled high-temperature alloys and the import substitution of key strategic materials. In the years 2021, 2022, and 2023, the company achieved a net profit attributable to the owners of the parent company of RMB 69.1813 million, RMB 1.07 billion, and RMB 1.51 billion respectively. After deducting the issuance expenses, the raised funds will be invested in the following projects in order of urgency: 1. The construction project of an annual output of 8,000 tons of ultra-pure high-performance high-temperature alloy, with a planned use of raised funds of RMB 1.052 billion; 2. Supplementary working capital, with a planned use of raised funds of RMB 1.98 billion.