IPO China丨Listed on NEEQ, HongDongFang mainly engaged in Glyphosate business

Henan HongDongFang Chemical Limited (873777) listed on NEEQ recently in China.The company's operating income in 2020 and 2021 was 591 million yuan and 1.129 billion yuan respectively, and the net profit attributable to the parent is 64.9902 million yuan and 337 million yuan respectively.

HongDongFang is a high-tech enterprise specializing in the research and development, production and sales of glyphosate technical and formulations and fine chemical products. At present, the company is mainly engaged in glyphosate technical and formulations, fine chemical products, and its subsidiary Dongfang Thermal is engaged in the central heating business of Xuchang Fine Chemical Industry Park.

After long-term market accumulation, the products have covered major provinces and regions across the country and are exported to overseas. The company is the core backbone enterprise of glyphosate technical production in China, the director unit of China Crop Protection Industry Association, the director unit of China Pesticide Development and Application Association,and the industry leader in Henan Province, have been selected as the "Top 100 Sales of China's Pesticide Industry" for many years.

As "Henan Province Intellectual Property Advantage Enterprise", the company attaches great importance to scientific and technological innovation. Currently, it has 12 invention patents and 56 utility model patents. The "New Process for Synthesis of Glyphosate" independently developed by the company was rated as "Henan Province Science and Technology Achievement" , "Second Prize of Science and Technology Progress in Xuchang City", and successively undertaken scientific and technological projects such as "R&D of Glyphosate Crystallization Process Technology". In addition, the company uses the by-product methyl chloride to produce ethylene glycol dimethyl ether and other products, which can be widely used in new materials, medicine, new energy vehicles, high-grade water-based ink coatings and other fields.

According to the public transfer book, in 2021, the company's top three sales customers are Zhejiang Wynca Group, Ireland Buckley, and Ningbo Tide Import and Export Co., Ltd. The sales of the top three customers were 90.7727 million yuan, 78.9287 million yuan and 69.1841 million yuan respectively.

In terms of company shareholding, the largest shareholder Han Gensheng holds 19.44 million shares of the company, accounting for 25.54% of the company's share capital; Yu Hongxia holds 18.06 million shares, accounting for 23.73% of the company's share capital.