Centralized Listing of a Batch of Rubber Enterprises

Sanwei was listed on Shanghai Stock Exchange and entered the capital market

On December 7, 2016, Zhejiang Sanwei Rubber Item Co. Ltd. held the A share IPO ceremony on Shanghai Stock Exchange (Stock abbreviation: Sanwei, code: 603033). This company is the third listed company engaged in rubber belts following Boton Technology and Double Arrow.

As introduced, before the issuance, the total stock of this company was 68 million shares. This time, 22.70 million RMB ordinary shares were issued. So after the issuance, the total stock reached 90.70 million shares. This time, Sanwei totally raised RMB 398.385 Million Yuan, and the net amount of the actual raised funds was RMB 363.40 Million Yuan after deducting various issuance costs. The raised funds will be invested in the high-performance special conveyor belt production line project with annual output of 7 million square meters (RMB 183.40 Million Yuan) and also be used for repayment of bank loans and supplement of operating funds (RMB 180 Million Yuan).

According to the listing announcement materials, in the next three years, Sanwei will devote itself to producing and selling rubber conveyor belts and V-belts and focus on developing high-performance rubber conveyor belts and V-belts, especially the heat-resistant conveyor belts and flame retardant conveyor belts with promising market potential and high added value and other high-performance conveyor belts, automotive V-belts, ribbed belts, joined V-belts, etc.

Sanwei plans to achieve the following development targets in the next three years: Firstly, continuously expand the production capacity of high-end rubber belts; secondly, optimize and adjust the product structure and focus on developing high-performance conveyor belts and V-belts; thirdly, increase the input in the R&D of products and technologies to improve its capability of independent innovation; fourthly, construct marketing network and continuously maintain and establish the long-term cooperative relationship with the clients on both domestic and overseas markets. It strives to become one of the leading enterprises in the Chinese conveyor belt industry by 2017 with the production capacity of 38 million square meters of conveyor belts annually.

Sanwei was founded in 1990 and it changed to a joint-stock company on June 20, 2011, which is mainly engaged in the production and sale of rubber conveyor belts and V-belts. According to the statistical data of China Rubber Industry Association, from 2009 to 2014, the production and sale of conveyor belts in this company ranked top 10 in the industry for 6 consecutive years and that of V-belts ranked the second in the industry for 6 consecutive years. At present, the production capacity of the conveyor belts in this company has reached 25 million square meters and that of V-belts has reached 200 million square meters. It is the only enterprise whose conveyor belts and V-belts both rank top 10 in China. 

Zhejiang Xiantong was listed on Shanghai Stock Exchange

On December 30, 2016, Zhejiang Xiantong Rubber & Plastic Co., Ltd. held the A share IPO ceremony on Shanghai Stock Exchange (Stock abbreviation: Zhejiang Xiantong, code: 603239). This company is the third listed company engaged in rubber and plastic automobile sealing strips following Zhongding and Haida.

According to the listing materials, before the issuance, the total stock of this company was 90.24 million shares. This time, 22.56 million shares were issued and circulated at a price of RMB 21.84 Yuan/share. Xiantong totally raised about RMB 493 Million Yuan, and the net amount of the actual raised funds was about RMB 446 Million Yuan after deducting various issuance costs. The raised funds will be invested in the automobile rubber sealing strip expansion project with annual output of 23 million meters, automobile plastic sealing element expansion project with annual output of 13 million meters, automobile sealing strip R&D center construction project and will also be used for supplementing the working capital. All the investment projects will closely center on the existing core business to improve the production capacity and technical R&D ability of rubber and plastic sealing strips.

In the next two years, the overall development plan of this company is listed as follows: Follow the needs of the customers to expand the production capacity; establish the automobile sealing strip R&D center to improve the R&D ability of the company on such aspects as new product R&D, process technology improvement as well as synchronous development and overall design scheme of the whole automobile plant and establish a high-level R&D team; make full use of the scientific quality management system, elaborately plan the product quality, and strictly control the production process to ensure good product quality and produce highly consistent products; further play the social functions of the company as a welfare enterprise, enhance the sense of social responsibility of the enterprise and provide jobs for more disabled people; establish perfect employee training system, improve the running efficiency of the marketing system of the company and improve the overall development ability of the company.

The First Listed Stock of Rubber Industry in 2017

On January 5, Zhejiang Tiantie Industry Co., Ltd. was listed on the growth enterprise market of Shenzhen Stock Exchange (Stock code: 300587, stock abbreviation: Tiantie), being the first listed stock of rubber industry in 2017. On the first day, it rose by 44% to the limit, making a good start for enterprises in rubber industry to be listed.

It is learnt that the issue price of Tiantie was RMB 14.11 Yuan/share and 26 million RMB ordinary shares were issued. After deducting various issuance costs, the actual raised funds were RMB 367 Million Yuan, which will be invested in the rubber damping pad construction project with annual output of 240,000 square meters and the R&D Center construction project and also be used for supplementing the working capital.

In a speech, Mr. Xu Jiding, the president of Tiantie, said that since the establishment in 2003, this company had always paid attention to independent innovation, closely followed the latest development direction of relevant technologies for rubber products in track engineering, and gradually determined the track structure noise and vibration control as the company’s technical development direction. At present, it has de- veloped into a domestic manufacturer of track structure damping products as well as a leading supplier of the rubber track structure damping products with relatively rich application cases.

After years of development, this company has grasped several core technologies related to track structure noise and vibration control and had 41 patents (including 10 patents for invention). In 2013, this company was identified as a patent demonstration enterprise in Zhejiang Province. Meanwhile, this company also participated in the compiling of the national industry standard——Technical Code for Floating Slab Track (CJJ/T191-2012) issued by the Ministry of Housing and Urban-Rural Development.

So far, the isolated rubber damping pad, a core product of this company, has been applied on over 30 urban rail transit routes in more than 20 cities in China, and this company is one of the domestic track structure damping product manufacturers with relatively rich application cases. The isolated rubber damping pads have been paved in high-speed railways such as Guangzhou-Shenzhen-HK High-Speed Railway and the Second Double Track of Lanzhou–Xinjiang Railway. This company is a rare track structure damping product supplier applying its products on the design of high-speed railways with a speed of over 300km/h.

Dawn was successfully listed on SME board

On January 6, Shandong Dawn Polymer Material Co., Ltd. was listed on SME board of Shenzhen Stock Exchange (Stock code: 002838, stock abbreviation: Dawn) and became the 823rd listed company of the SME board. On the first day of the listing, it rose by 43.52% to the limit, indicating that this company stepped on a new development stage by virtue of the capital market and created conditions for building a world-class TPV manufacturer.

This company is a domestic leading TPV manufacturer as well as the first Chinese enterprise producing TPV with the “completely dispersed — fully dynamic vulcanization” technology, successfully replacing the imported materials and promoting the development of the Chinese rubber industry. In 2008, it won the Second Prize of National Science and Technology Award. Besides, it also established the first TPV production line in China and holds 8 national, provincial and ministerial platforms for scientific research and innovation.

The TPV produced by this company is a kind of new high polymer material replacing the traditional rubber. Due to high difficulty of technology, there are only several countries such as America, Japan and Holland grasping this production technology.

According to the listing report data, the business target of this company is to “become stronger and bigger in TPV and rank top 3 in the world in 5 years.”

Therefore, this company makes a specific development strategy: Firstly, seek for synergetic development based on 3 kinds of products. In the future, this company will achieve a breakthrough in client development, develop comprehensively and help with each other for synergetic development. Secondly, lead the market demand. It will give full play to the rubber replacement role of TPV, accelerate the market occupation of the traditional rubber products industry; on the other hand, it will accelerate the promotion of the thermoplastic medical brominated butyl rubber products to realize the replacement for thermosetting brominated butyl rubber. Thirdly, continuously explore new products and new fields, such as hydrogenated nitrile butadiene rubber (HNBR) and new thermoplastic elastomer (TPE) used for tire gas separate layer. At present, special HNBR has completed the pilot test and new TPE used for tire gas separate layer has completed the lab test.

It is learnt that Dawn issued 21 million RMB ordinary shares at a price of RMB 15.28 Yuan/share. After issue, the total equity reached 84 million shares. After deducting various issuance costs, the actual raised funds were RMB 321 Million Yuan, which will be invested in the high-performance TPV expansion project, modified plastics expansion project, ten-thousand-ton TPIIR industrial project and technical center construction project, involving the expansion of the original production capacity, extension from the elastomer application field to medical health field, technical R&D ability improvement, etc.