Fengbei Bioscience's IPO has been approved by the listing committee of the Shanghai Stock Exchange, mainly focused on producing value-added products from waste oil.

On August 7th, Suzhou Fengbei Biotechnology Co., Ltd. (referred to as Fengbei Biotechnology) passed the listing committee meeting of the Shanghai Stock Exchange. The sponsor of this IPO is Guotai Haitong, intending to raise 1 billion yuan. According to the prospectus, Fengbei Biotechnology is a high-tech enterprise in the field of comprehensive utilization of waste resources, mainly producing resource-based products from waste grease. Based on long-term research and development investment and industrial practice, the company continuously expands the depth and breadth of waste grease resource utilization, forming a waste resource regeneration industry chain of "waste grease - biofuel (biodiesel) - bio-based materials". In addition, the company also provides oil chemical products to customers based on its core technology and channel advantages in the comprehensive utilization of grease. As of the end of 2024, the company's biodiesel production capacity is 105,000 tons, ranking sixth in China's biodiesel industry in terms of production capacity. Considering the production of the main resource-based product biodiesel, according to USDA statistics, China's biodiesel production in 2024 is about 1.71 million tons, while the company's biodiesel production is 80,100 tons, corresponding to a market share of about 4.68% in terms of production. Regarding bio-based materials, the company has successfully promoted the application of bio-based materials in subfields such as agricultural chemicals, with products meeting the development trend of safety, environmental protection, and reducing pesticide use while increasing efficiency. The company has also established long-term cooperation with many leading enterprises in the agricultural chemicals field, such as Hefei Fengle Seed, Jiuyi Co., Ltd., Sichuan Lutianhua, Sichuan Meifeng Chemical Industry, Shenzhen Batian Ecotypic Engineering, etc. In terms of biofuels, the company has passed supplier inspections and cooperation with many large biofuel customers, including global commodity trading giants such as TRAFIGURA, GLENCORE, as well as BIOSYNTEC HANDELS GMBH, CARGILL NV, SHELL, REG INTERNATIONAL TRADING & COMMODITIES B.V., BP, and other globally renowned end customers. In terms of finances, in 2022, 2023, and 2024, Fengbei Biotechnology achieved operating revenues of approximately 1.709 billion, 1.728 billion, and 1.948 billion yuan respectively. During the same period, the company achieved net profits of approximately 133 million, 130 million, and 124 million yuan respectively. Fengbei Biotechnology mentioned in the prospectus that the company faces the risk of fluctuations in raw material supply prices. During the reporting period, the procurement amount of waste grease accounted for a high proportion of the total raw material procurement of the issuer, and its procurement price is a major factor affecting the company's main operating costs. Waste grease mainly comes from grain and oil food processing companies, grease chemical companies, kitchen waste disposal companies, farms, slaughterhouses, restaurants, hotels, etc., with a dispersed supply geography and involving multiple links such as raw material collection, processing, and transportation. Therefore, there are many factors affecting the price of waste grease. If the procurement price of waste grease rises significantly and the company is unable to promptly pass on the cost increase due to the rise in raw material prices, it will adversely affect the company's operating performance.