Company profile: The company is a high-tech enterprise, a designated pesticide manufacturer, the vice president unit of the China Pesticide Industry Association, and the executive director unit of the China Pesticide Development and Application Association. Since its establishment, the company has always adhered to the responsibility concept of “Fengshan pesticide to protect agricultural harvest”, actively implemented the management concept of “responsible care”, formed a complete pesticide R&D, production and sales system, and achieved the collaborative development of “original drugs+formulation+intermediates”. The main products are four series of products, including fluralin, essential quinholine, nicotinolone, and chlorpyrifos. The controlling shareholders and actual controllers of the company are Yin Fengshan and Yin Ping's father and daughter. Current status and prospects of the industry China's pesticide production capacity and production are among the highest in the world, but the industrial concentration is low and the number of enterprises is large. Most of them are small in scale, overcapacity, and OEM sales, and are at the low end of the value chain. Many enterprises have problems such as many hidden safety and environmental hazards, poor technical equipment levels, and insufficient investment in environmental protection and safety. In response to the current situation, the state uses industrial policy guidance to vigorously promote mergers, acquisitions and restructuring among enterprises, increase industrial concentration, and promote the transformation of the pesticide industry in the direction of intensification, scale, specialization and specialization. Furthermore, in the context of green and sustainable development becoming the main focus in the future, speeding up the elimination of highly toxic and high-risk pesticides, and promoting and popularizing high-efficiency, low-toxic, safe and environmentally friendly pesticides has become an inevitable trend in China's agricultural development. Company highlights: R&D and technical advantages. The company is a high-tech enterprise, a designated pesticide manufacturer, the vice president unit of the China Pesticide Industry Association, and the executive director unit of the China Pesticide Development and Application Association. In order to continuously improve technological innovation capabilities, the company continues to invest in R&D and has successively built R&D platforms such as the Jiangsu Enterprise Technology Center, the Jiangsu (Fengshan) Chiral Pesticide Engineering Technology Center, and Academician Workstations, etc., thus ensuring the smooth progress of technological innovation and product development activities. Brand advantage. With the advantages of technology, quality, brand and market accumulated over a long period of time, the company has become one of the leading enterprises in the domestic pesticide market. The company's products have won wide recognition in the industry, and the “Fengshan” trademark was recognized as a “famous trademark in China” in 2005. Fund-raising project 1. It is proposed to use 71 million yuan of raised capital for the technical improvement project of a production line with an annual output of 1,500 tons of nitrosulfonone. 2. It is proposed to use the capital raised to raise 171 million yuan for technical improvement projects for the production line of the original drug with an annual output of 800 tons of purified quinoline and 500 tons of quinone furfuryl per year. 3. It is planned to use 130 million yuan of raised capital for the technical improvement project of the original drug production line with an annual output of 700 tons of cyafloxate and 300 tons of alkynyl oxalate. 4. It is proposed to use the raised capital of 78 million yuan for the technical improvement project of the original drug production line with an annual output of 1,000 tons of trichloropyoxyacetic acid and 1,000 tons of butoxyethyl trichloropyroacetate. Main potential risks Environmental protection risks. Pesticide companies generate “three wastes” such as wastewater, exhaust gas, and solid waste, and noise during the production process. As the country and society pay more attention to environmental protection, relevant departments may promulgate and adopt higher environmental standards. If the company fails to meet the corresponding requirements in a timely manner when the environmental policy changes, production may be limited, discontinued, or face the risk of being penalized for environmental protection. At the same time, if relevant environmental standards are raised, it will further increase the company's investment in environmental protection and increase the company's operating costs, thereby affecting the company's operating performance. The valuation issuer's industry is the chemical raw materials and chemical products manufacturing industry. As of September 3, 2018, the average static price-earnings ratio for the last month published by the China Securities Index was 20.39 times. Based on current market conditions, the initial pressure level of listing is expected to be 40 yuan to 45 yuan.