Company profile: The company's main business is R&D, production, sales and technical services of polyurethane resin products. The main products are polyurethane (PU) for synthetic leather, polyurethane elastomer stock solution, and polyester polyols. The controlling shareholder of the company is Huide Group, which controls 47.50% of the company's shares before issuance; the actual controllers are Qian Jianzhong and Yan Qun; in total, they control 93.75% of the company's shares before issuance. Current status and prospects of the industry Polyurethane has achieved rapid development around the world. Polyurethane products have good physical properties and are used in a wide range of fields, so they have achieved rapid development around the world. Currently, the Asia-Pacific region, North America, and Western Europe are the most important polyurethane production and sales regions in the world. The total consumption volume accounts for more than 85% of the world's total. Among them, the Asia-Pacific region is already the world's largest polyurethane consumer market, accounting for about 45% of the global market share. According to statistics from the China Polyurethane Industry Association, the total global production of polyurethane products was about 11.29 million tons in 2002 and increased to 15.92 million tons in 2007, with a compound annual growth rate of 7.1%. Affected by the financial crisis, global polyurethane production in 2008 increased slightly compared to 2007, and production declined in 2009, but production recovered and continued to grow in 2010. Global production in 2015 was 21.64 million tons, and global production reached 23.39 million tons in 2016. Global polyurethane production is expected to increase by more than 5% in the next few years. With the increasing health, environmental protection, and ecological requirements of global consumers, as well as the requirements for better quality and better physical properties of materials and products, the proportion of polyurethane products with high functionality, high performance, and ecological environment in use in synthetic leather products in China continues to increase. Therefore, the market demand for new ecologically functional composites continues to increase, which will further drive the continuous development of polyurethane products, especially high-quality, new performance, and environmentally friendly polyurethane products. Company highlights: The company is a leading company in polyurethane for leather. Over the years, according to the development trend of the polyurethane industry and changes in downstream application requirements, the company has always taken the actual needs of customers as the core, attached importance to technological innovation and product research and development, continuously optimized production processes and formulations, achieved product customization and differentiation, and continuously improved product quality and stability. At the same time, the company keeps abreast of changes in demand from downstream customers and end consumers through its own sales channels, and provides customers with comprehensive “product+technology” solutions through product development by the technical team. Currently, the company has 26 invention patents. The company's main patented technology is polyurethane-related technology for leather. Furthermore, the R&D team has independently developed advanced technologies representing the future development direction of the industry, such as water-based polyurethane, solventless polyurethane, polyurethane modifiers, and polyurethane elastomers, providing technical support for the company's development. According to statistics from the China Polyurethane Industry Association, China's production of polyurethane for leather in 2016 was about 1.97 million tons. In 2016, the issuer produced about 120,000 tons of polyurethane for leather, accounting for 6.11% of the total output of China's leather polyurethane industry. Fund-raising project 1. It is proposed to use 415 million yuan of raised capital for a project with an annual output of 180,000 tons of polyurethane resin and its modifiers. 2. It is planned to use the raised capital of 32 million yuan for technology research and development center projects. 3. It is planned to use the raised capital of 32 million yuan for intelligent transformation projects. The main potential risk is the risk of fluctuations in the price of raw materials. The main raw materials used in the company's production are diphenylmethane diisocyanate (MDI), adipic acid (AA), and dimethylformamide (DMF). In each fiscal year of the reporting period, the total cost of these three types of raw materials accounted for more than 60% of the current main business costs. Fluctuations in the prices of these three types of raw materials will have a significant impact on the company's profit situation. Environmental protection and production safety risks. The company will generate a certain amount of wastewater, exhaust gas, waste, and noise during the production process. Over the years, the company has continuously remodeled and upgraded environmental protection facilities, continuously increased human and capital investment in environmental management, established an environmental management system, and passed the ISO14001:2004 environmental management system certification. However, with the transformation of the country's economic growth model and the full implementation of the sustainable development strategy, the country's environmental protection and cleaner production policy requirements are increasing, and environmental pollution control standards may become even stricter. There is a risk that the company's business performance will be affected due to the continuous increase in environmental protection spending. The main raw material of the company's products, dimethylformamide (DMF), is a flammable substance and is a hazardous chemical. In production and storage, the company faces the risk of production safety if equipment failure, improper storage, or improper operation occurs. The valuation issuer's industry is the chemical raw materials and chemical products manufacturing industry. As of July 20, 2018, the average static price-earnings ratio for the last month published by the China Securities Index was 21.97 times. Based on current market conditions, the initial pressure level of listing is expected to be 40 yuan to 46 yuan.