A-share subscription | High-performance polymer materials manufacturer Neng Zhi Guang (920056.BJ) kicks off subscription, independently developing over 300 different product models.

On August 13, Nengzhiguang (920056.BJ) started its subscription with an issue price of 7.21 yuan per share, a subscription limit of 702,000 shares, a price-earnings ratio of 11.28 times, belonging to the North Exchange, with Sinolink as its sponsor. The prospectus disclosed that Nengzhiguang is a high-tech enterprise engaged in the research, development, production, and sales of polymer additives and functional polymer materials. It is also a national-level specialized and new "Little Giant" enterprise, focusing on functional polymer products such as compatibilizers, tougheners, and adhesive resins, with over 300 product numbers independently developed. Plastics are an important branch of polymer materials. According to statistics from PRECEDENCE RESEARCH, the global plastic additives market is estimated to be $58.12 billion in 2023 and is expected to reach around $90.69 billion by 2033, with a compound annual growth rate of 4.55% from 2023 to 2033. According to statistics from Mordor Intelligence, China's plastic additives market reached $7.39 billion in 2020, and it is estimated that the market will reach $9.781 billion in 2026, with a compound annual growth rate of 4.78%. It is reported that the company's direct downstream fields include modified plastics, composite materials, and functional composite films. The main business income and proportion of the company's products in the direct downstream industries are as follows: Financially, in the years 2022, 2023, and 2024, the company achieved operating income of approximately 556 million yuan, 569 million yuan, and 611 million yuan, respectively, and net profits of approximately 21.865 million yuan, 49.8077 million yuan, and 55.9409 million yuan, respectively. Nengzhiguang pointed out in the prospectus that during the reporting period, the company's net cash flow from operating activities was -54.2291 million yuan, 54.9243 million yuan, and 68.9074 million yuan, respectively. In 2022, the company's net cash flow from operating activities was lower than the net profit and negative, mainly due to the company's sales business being mainly settled by bills, which have a certain acceptance period, while the settlement method of the purchasing business is mainly through bank telegraphic transfer, causing the company's working capital to be to some extent occupied.