Tongyu New Materials submits registration for IPO on the Shenzhen Stock Exchange's Growth Enterprise Board, mainly specializing in electronic resins used for the production of copper-clad laminates.

On April 14th, Tongyu New Materials (Guangdong) Co., Ltd. (referred to as Tongyu New Materials) applied for a change in the IPO review status on the Shenzhen Stock Exchange ChiNext Board to "submitted for registration". The sponsor institution is Industrial, aiming to raise 1.3 billion yuan. The prospectus shows that Tongyu New Materials mainly engages in the research, development, production, and sales of electronic resins, primarily used in the production of copper-clad laminates. The company's products mainly include MDI modified epoxy resin, DOPO modified epoxy resin, high-brominated epoxy resin, BPA phenolic epoxy resin, phosphorus-containing phenolic resin curing agents, etc. The company has independently designed and developed benzoxazine resins with a skeleton structure containing double bond monomers. It has passed customer tests, started small-scale supply, and provided cost-effective solutions for domestic high-speed copper-clad laminate materials with Low Loss level. The company's main products have been certified by downstream well-known copper-clad laminate manufacturers such as KINGBOARD HLDG, Shengyi Technology, Nanya New Material Technology, Zhejiang Wazam New Materials, Golden Pegasus Electronics, and Guangdong Goworld. After deducting issuance expenses from the funds raised, they will be invested in the following projects: Financially, in 2022, 2023, and 2024, Tongyu New Materials achieved operating income of approximately 1.93 billion yuan, 0.86 billion yuan, and 9.52 billion yuan, respectively. During the same period, the company achieved net profits of approximately 0.88 billion yuan, 0.64 billion yuan, and about 0.43 billion yuan, respectively. In terms of risk factors, Tongyu New Materials openly stated in the prospectus that its products are primarily used in the production of copper-clad laminates, eventually widely used in various industries such as computers, consumer electronics, automotive electronics, and communications. The downstream customer demands are diverse, industry technological advancements are rapid, and product upgrades are frequent. In the future, if the company's judgment on product and market development trends deviates, if the technical route and product positioning cannot be adjusted timely according to market changes, and if technical R&D and product innovation cannot promptly respond to the needs of downstream industries, it will lead to the risk of customer loss and have a significant adverse impact on the company's operations.