Company profile: The company is mainly engaged in R&D, production and sales of clean electrical hoses and accessories products. Through a complete service system formed in raw material development, structural design, special equipment development, mold development, product supply, after-sales service, etc., the company is committed to providing diversified, systematic and customized hose and accessories integration solutions for clean appliance manufacturers. Chunguang Holdings holds 45 million shares of the company, with a shareholding ratio of 62.50%, and is the controlling shareholder of the company. Chen Zhengming's family is the actual controller of the company. Current status and prospects of the industry Clean electrical hoses are mainly used to clean electrical appliances such as vacuum cleaners, irons, and dishwashers. Driven by multiple factors such as global population growth, rising economic standards, and increasing people's indoor environmental quality requirements and health awareness, the overall demand for the global clean appliances market is growing steadily. As the penetration rate of clean appliances continues to increase, clean electrical products continue to develop in the direction of high-end, intelligent, energy-saving and personalized to meet the diverse needs of consumers, such as vacuum cleaners with wet and dry use, high suction power, silence, environmental protection, and wireless control functions, thus placing higher demands on clean electrical hose products. Technological innovation and product upgrades have made clean electrical hose products better meet the diversified, customized and systematic needs of terminal appliance brands for hose products, thus expanding the market space of the clean electrical hose industry. Company highlights: Technical advantages. Since its establishment, the company has paid great attention to the research and development of basic and core technologies for clean electrical hoses and accessories, and established the “Chunguang Rubber and Plastic Hose Technology Center” in 2006. The “high-strength electronic hose for high-end vacuum cleaners” independently developed by the company won the third prize for outstanding new industrial products and technology in Zhejiang Province, and has successively developed hose products with advanced process technology, such as “1:8 large expansion ratio hoses” and “four-spiral central vacuum cleaner hoses”, continuously expanding the variety and application range of hose products to meet the diversified and customized needs of customers for hoses and accessories. Customer advantage. The company has been deeply involved in the clean electrical hose industry for many years, adhering to the customer-centered service concept. Through improving production processes and continuous technological accumulation and innovation, the company provides customers with diversified, systematic and customized hose and accessories products, has accumulated rich high-quality customer resources, and established a long-term, stable and close cooperative relationship with it. The company's products are widely used in well-known domestic and foreign cleaning appliance brands such as Midea (Midea), Lexy (Lexy), Dyson (Dyson), Shark (Shark), Bissell (Bissell), Hoover (Hoover), and Siemens (Siemens). Fundraising project 1. It is proposed to use the raised capital of 218 million yuan for the production and construction of clean electrical hoses. 2. It is planned to use 142 million yuan of raised capital for vacuum cleaner parts production and construction projects. 3. It is planned to use the raised capital of 35 million yuan for R&D center construction projects. The main potential risk is the risk of fluctuations in the price of raw materials. The main raw materials of the company's products include polyethylene, PVC, bars, plasticizers, ABS, electronic wires, etc. In 2015, 2016, and 2017, the purchase amounts of these major raw materials accounted for 63.33%, 60.55%, and 57.30% of the company's total current procurement amount, respectively. Most of the company's main raw materials come from the petrochemical industry, and the supply of raw materials is sufficient, but their prices show a certain degree of volatility due to the influence of oil prices. The company mitigates the impact of fluctuations in raw material prices to a certain extent through research and judgment to adopt corresponding procurement strategies, and continuous research and development to launch high-value-added products. Despite this, fluctuations in raw material prices still have a certain impact on the company's profitability and stable operation. The valuation issuer's industry is the rubber and plastic products industry. As of July 13, 2018, the average static price-earnings ratio for the last month released by the China Securities Index was 28.02 times. Based on current market conditions, it is estimated that the initial listing pressure level will be 38 yuan to 43 yuan.