New Stock News | Dongsheng Industries Submits Application to Hong Kong Stock Exchange for Main Business Phosphorus Resource Full Life Cycle Graded Utilization.

According to the disclosure of the Hong Kong Stock Exchange on May 12th, Hubei Dongsheng Industrial Co., Ltd. (referred to as: Dongsheng Industrial) has submitted its listing application to the Hong Kong Stock Exchange main board, with GF SEC as its exclusive sponsor. Company Overview The prospectus shows that Dongsheng Industrial is a company with a comprehensive business model based on the comprehensive utilization of phosphorus resources throughout their lifecycle. The company's vertically integrated business covers the entire industry chain, including phosphorus ore mining, beneficiation, sulfuric acid preparation, phosphoric acid production, phosphate fertilizer manufacturing, and green recycling of phosphogypsum. According to Frost & Sullivan data, the company's domestic sales volume of industrial grade monoammonium phosphate (MAP) ranks eighth in the industry in China in 2025, and the domestic sales volume of diammonium phosphate (DAP) also ranks eighth in China in 2025. During the past performance period, the company's revenue mainly came from the sales of the following products: traditional phosphate ammonium products, including monoammonium phosphate and diammonium phosphate; fine phosphate ammonium products, including industrial grade monoammonium phosphate and other water-soluble products; phosphate rock, including phosphate rock and tailings after beneficiation; and others, mainly including chemical by-products. The company's traditional phosphate ammonium products and fine phosphate ammonium products are mainly sold as fertilizers, with an established marketing network covering the major agricultural areas in China and extending to international markets, and with a stable and high-quality customer base. During the past performance period, the company has served more than 360 domestic and foreign customers, mainly including mature market participants in downstream industries. In terms of mineral assets and mining rights, the Yulinxi phosphate mine is fully owned and operated by the company, and since 2017, the company has held the mining rights to the Yulinxi phosphate mine. According to qualified reports, as of March 31, 2026, the total estimated mineral resource of Yulinxi phosphate mine is approximately 72.5 million tons, including 470 million tons of proven resources, 229 million tons of controlled resources, and 448 million tons of inferred resources; the total estimated ore reserves are approximately 22.6 million tons, including 38 million tons of confirmed reserves and 188 million tons of estimated reserves. In terms of sales markets, the company conducts marketing and sales of phosphate ammonium products in China and overseas markets (including Southeast Asia, South Asia, and South America). Financial Information Revenue: For the years 2023, 2024, and 2025, the company's revenue was approximately RMB 1.506 billion, RMB 1.623 billion, and RMB 1.859 billion, respectively. Gross profit: For the years 2023, 2024, and 2025, the company's gross profit was approximately RMB 556 million, RMB 313 million, and RMB 405 million, respectively. Profit: For the years 2023, 2024, and 2025, the company's net profit for the year was approximately RMB 367 million, RMB 150 million, and RMB 192 million, respectively. Industry Overview The phosphate chemical industry is an industrial system that processes various phosphorus-containing products from phosphate rock through chemical methods. According to the 2024 "China Mineral Resources Report," China's phosphate rock reserves are approximately 3.44 billion tons, ranking second in the world. Hubei Province is the largest province in the phosphate chemical industry in China, with its phosphate rock production accounting for about 40% of the national total in 2024. Phosphate ammonium products are crucial in the phosphate chemical industry and are produced through chemical reactions between phosphoric acid and ammonia. Differentiated by product purity, application scenarios, and value-added characteristics, phosphate ammonium products can be divided into traditional phosphate ammonium products and fine phosphate ammonium products. Traditional phosphate ammonium products are agricultural inputs, with phosphorus-containing chemicals as the main source of nutrients. The main traditional phosphate ammonium products include monoammonium phosphate and diammonium phosphate. Driven by agricultural planting demands and policies to strengthen food security, the domestic sales volume of monoammonium phosphate in China increased from 11.6 million tons in 2021 to 13.3 million tons in 2025, with a compound annual growth rate of 3.4% during the period. In the future, with the deepening implementation of food security strategies and adjustments in product structure towards efficiency, the domestic sales volume of monoammonium phosphate in China is expected to reach 16.4 million tons by 2030, with a compound annual growth rate of 4.3% from 2025. The Chinese diammonium phosphate market is maintaining a steady development trend, with domestic sales increasing from 8.3 million tons in 2021 to 11 million tons in 2025, representing a compound annual growth rate of 7.2% during the period. Looking ahead, the domestic sales volume of diammonium phosphate in China is expected to continue growing steadily, reaching about 15.7 million tons by 2030, with a compound annual growth rate of 7.4% from 2025 to 2030. Fine phosphate ammonium products are usually high-purity, high-value phosphate chemical products, primarily including industrial grade monoammonium phosphate products and other water-soluble products. The domestic sales volume of industrial grade monoammonium phosphate products in China increased significantly from 1 million tons in 2021 to 2.8 million tons in 2025, with a compound annual growth rate of approximately 27.6%. Overall, by 2030, the domestic sales volume of industrial grade monoammonium phosphate in China is expected to reach around 4.6 million tons, with a compound annual growth rate of about 10.4% from 2025 to 2030. In the field of new energy, the continuous growth in demand for new energy vehicle batteries and energy storage systems is driving the increasing application of industrial grade monoammonium phosphate in the production of lithium iron phosphate batteries, with the share of new energy applications expected to increase to around 30.0% by 2030. Simultaneously, with increasing demand in fine chemical industries, the share of industrial applications is expected to reach about 20.0% by 2030. In the agricultural sector, the promotion of water-soluble products also drives continuous growth in the demand for industrial grade monoammonium phosphate. In 2025, the domestic market sales volume of industrial grade monoammonium phosphate in China reached approximately 2.777 million tons. According to domestic sales volume, the combined market share of the top ten industrial grade monoammonium phosphate producers was 48.8%, with market shares relatively dispersed. Among them, the Group's domestic sales volume of industrial grade monoammonium phosphate in 2025 was 73.5 thousand tons, with a market share of 2.6%, ranking eighth in China. In 2025, the domestic market sales volume of diammonium phosphate in China reached approximately 10.953 million tons. According to domestic sales volume, the combined market share of the top ten diammonium phosphate producers in China was 72.7%, with market shares relatively concentrated. Among them, the Group's domestic sales volume of diammonium phosphate in 2025 was 128.7 thousand tons, with a market share of 1.2%, ranking eighth in China. Board of Directors Information The Company's board of directors currently consists of 9 directors, including 5 executive directors, 1 employee representative director, and 3 independent non-executive directors. Equity Structure As of May 6, 2026, Mr. Huang Changbing and Mr. Huang each hold 40% and 60% of the company's shares, respectively. The two are father and son and have entered into a joint action agreement. Intermediary Team Exclusive Sponsor: GF Securities (Hong Kong) Co., Ltd. Company Legal Advisor: Morgan Lewis Solicitors regarding Hong Kong law; Tongshang Law Firm regarding Chinese law Exclusive Sponsor Legal Advisor: Tianyuan Law Firm (Limited Liability Partnership) regarding Hong Kong law; Guohao Law Firm (Shanghai) regarding Chinese law Reporting Accountants and Auditors: Ernst & Young Independent Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultant: ALTUS HLDGS Limited