New stock news | Shougang Langze re-submits application to Hong Kong Exchange. The company is engaged in the carbon capture, use, and storage industry.

According to the disclosure by the Hong Kong Stock Exchange on March 27th, Beijing Shougang Longze Technology Co., Ltd. (Shougang Longze) has submitted an application to the main board of the Hong Kong Stock Exchange for listing, with Yuexiu Finance as its exclusive sponsor. The company had previously submitted a listing application to the Hong Kong Stock Exchange on December 31, 2024. Company Overview According to the prospectus, Shougang Longze is a company engaged in the carbon capture, utilization, and storage industry (also known as the CCUS industry), focusing on the production of low-carbon products such as ethanol and microbial protein through carbon capture and utilization technology, and providing comprehensive low-carbon solutions. Since its establishment in 2011, the company has been deeply involved in the CCUS industry. According to Frost & Sullivan data, Shougang Longze is the first company in the CCUS industry to commercialize and scale the production of low-carbon products using verified synthetic biology technology. As of the last feasible date, Shougang Longze has successfully operated four large-scale production facilities in China, proving its ability to replicate proprietary technology for industrial application. Shougang Longze's ethanol can be used in automotive fuels and as raw materials for products such as perfumes, sportswear, detergents, and packaging materials. The company's microbial protein is China's first new type of feed protein raw material and has been awarded the first feed and feed additive new product certificate in the feed raw materials category by the Ministry of Agriculture and Rural Affairs of the People's Republic of China. Shougang Longze's technology helps reduce space and time constraints in traditional agricultural planting and breeding, creating a new path to obtain high-quality protein through industrial production. Shougang Longze employs a vertically integrated production process. The company's production model aims to efficiently convert carbon-containing industrial flue gas into high-value products through six key steps: (i) gas component purification and adjustment, (ii) continuous fermentation, (iii) distillation and dehydration, (iv) protein separation and drying, (v) waste heat recovery, and (vi) wastewater treatment. As of the last feasible date, Shougang Longze operates four production facilities in three provinces in China: Hebei Shoulang Phase I production facility, Shoulang Jiyuan production facility, Ningxia Binze production facility, and Guizhou Jinze production facility. Each production facility produces ethanol and microbial protein, with a total annual production capacity of 210,000 tons of ethanol and 23,200 tons of microbial protein. Except for the Hebei Shoulang Phase I production facility, which uses industrial flue gas from iron and steel plants as raw materials, the rest of our production facilities use industrial flue gas from ferroalloy plants. All our existing production facilities use first-generation carbon reduction technology. Financial Information Revenue In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 593 million, RMB 564 million, and RMB 522 million respectively. Annual Loss In the fiscal years 2023, 2024, and 2025, the company recorded annual losses of approximately RMB 110 million, RMB 246 million, and RMB 325 million respectively. Industry Overview In China, CCUS projects are developing rapidly. 16 new CCUS projects were added in 2021, with the number of new projects increasing in recent years. By 2025, the number of new projects had increased to 20. This growth is mainly due to the strong support of the Chinese government, which has introduced a series of policies to encourage the development of low-carbon technologies, with CCUS seen as a key technology for achieving carbon neutrality. In addition, as corporate environmental awareness continues to rise, more and more companies are willing to invest in CCUS projects to reduce carbon emissions. It is expected that the number of CCUS projects in China will continue to grow strongly in the future, with increasing investment in each project. This trend will drive the robust development of the CCUS industry in the coming years. The Chinese fuel ethanol market decreased from RMB 19.6 billion in 2021 to RMB 18.3 billion in 2025, with a compound annual growth rate of -1.7%, mainly affected by corn production methods. Despite the rapid growth of electric vehicles and increasing consumer preferences in recent years, data from the China Automobile Dealers Association shows that in 2025, sales of gasoline-powered vehicles in China reached 10.9 million units, accounting for approximately 46.1% of total passenger vehicle sales. According to Frost & Sullivan data, the number of gasoline-powered vehicles is expected to exceed 200 million in the next five years. Due to limitations in the range and charging facilities of electric vehicles, gasoline-powered vehicles are still widely used and difficult to be replaced on a large scale in the short term. Meanwhile, gasoline prices in China have risen, with the average prices of 92 and 95 octane gasoline increasing from RMB 7,682.6 and RMB 7,923.3 per ton in 2021 to RMB 8,289.2 and RMB 8,567.4 per ton in 2025, with compound annual growth rates of 1.9% and 2.0% respectively. The rise in oil prices has led to increased interest in alternative fuels, with fuel ethanol expected to benefit as a gasoline blending component. It is estimated that the sales volume of fuel ethanol in China will reach approximately RMB 22.9 billion by 2030, with a compound annual growth rate of 4.6%. Since 2020, disruptions in the supply chain caused by the COVID-19 pandemic have pushed prices up. Although there have been fluctuations month-to-month, prices have continued to rise, reaching a record high of RMB 6,104.5 per ton in 2022. From 2022 to the end of 2023, the quarterly price of fuel ethanol in China decreased overall due to the impact of low-cost coal-to-ethanol production. In the future, with stricter environmental policies, increasing demand for sustainable aviation fuel and green polyethylene, the demand for fuel ethanol is expected to steadily recover, driving prices up, with an estimated price of RMB 5,237.7 per ton by 2030. Ownership Structure As of the last feasible date, (i) Shougang Group directly holds approximately 26.54% of the total issued share capital of the company; (ii) NZ Tang Ming directly holds approximately 9.48% of the total issued share capital of the company; and (iii) Cao Fei Tian Fund directly holds approximately 3.54% of the total issued share capital of the company. It is expected that after the [compilation], Shougang Group, NZ Tang Ming, Ms. Dong Yan, Ms. Jian Ye, Chang Developments, Cao Fei Tian Fund, and Shou Cheng Rongshi will form a group of controlling shareholders of the company. Intermediary Team Exclusive Sponsor: Yuexiu Finance Limited Company Legal Counsel: Sileida Law Firm, Guo Feng Law Firm Exclusive Sponsor Legal Counsel: Tianyuan Law Firm (Limited Liability Partnership), Tianyuan Law Firm Auditor and Reporting Accountant: Ernst & Young LLP Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultant: Yuexiu Finance Limited