China丨Norsyn received IPO approval from China Securities Regulatory Commission

On July 7, 2022, Norsyn Crop TechnologyCo., Ltd. (hereinafter referred to as "Norsyn")'s initial A-share IPOapplication was approved by China Securities Regulatory Commission.

According to the announcement, Norsyn plans to go public on the main board of the Shenzhen Stock Exchange this time, withan initial public offering of no more than 25 million shares, accounting for noless than 25% of the company's total share capital after issuance. The raisedfunds will be used for projects such as intelligent digital factories technologicaltransformation of green pesticide formulation, R&D center, marketingservice system construction and supplementary operating funds.

Established in 2006, Norsyn is located inXi'an City, Shaanxi Province, whose main business is the research and development, production and sales of pesticide formulation products.

The prospectus pre-disclosed and updated on December 16, 2021 shows that Norsyn and its wholly-owned subsidiary Shaanxi Sunger Road Bio-science Co., Ltd. (hereinafter referred to as Sunger)  are proficient in the production process of 20 formulations and has280 pesticide registration certificates, 201 invention patents and 14 designpatents.

From 2018 to the first half of 2021, the revenueof Norsyn was 406 million yuan, 470 million yuan, 480 million yuan and 332million yuan respectively; the net profit in the same period was 36 millionyuan, 55million yuan, 68 million yuan and 60 million yuan. The company as awhole has shown steady profitability year by year.

From 2018 to the first half of 2021, thetotal revenue of Norsyn's pesticides, fungicides and herbicides products accountedfor 89.89%, 87.70%, 91.65% and 91.36% of its main business revenue,respectively. Among them, fungicides have the highest gross profit margin, witha gross profit margin of 42.51% in the first half of 2021, achieved sales of2,075 tons, 2,551 tons and 2,487 tons respectively from 2018 to 2020;insecticides comes the second, with a gross profit margin of 35.43% in thefirst half of 2021. sales volume from 2018 to 2020 were 1871 tons, 2404 tonsand 2892 tons respectively, showing a continuous growth trend.