On June 28th, 2024, Newtrend Technology Co., Ltd. ("Newtrend Technology" for short), located in Jinggangshan Economic and Technological Development Zone, Ji'an, Jiangxi, submitted a prospectus to the Hong Kong Stock Exchange and plans to issue H shares on the main board in Hong Kong.
Link to Xinqian Technology's prospectus:
https://www1.hkexnews.hk/app/sehk/2024/106585/documents/sehk24062803837_c.pdf
Main Business
Xinqian Technology, established in 2023, is a global leading manufacturer of food-grade glycine and sucralose, with customers in about 40 countries across six continents.
According to a report by Zhao Shi Consulting, in 2023, Xinqian Technology ranked first in the global food-grade glycine manufacturing industry in terms of sales volume and sales revenue, with market shares of approximately 5.1% and 3.1% respectively; Xinqian Technology is also one of the top five global manufacturers of sucralose, with global market shares of approximately 4.8% and 4.5%.
Xinqian Technology currently has five production plants in China (Ji'an and Yujiang in Jiangxi Province, and Golmud in Tibet), Indonesia, and Thailand. As of December 31, 2023, the company is the only Chinese food-grade glycine and sucralose manufacturer with production plants overseas among the top five manufacturers in China.
Shareholder Structure
According to the prospectus, in the shareholder structure before the IPO, Mr. Wang Xiaoqiang and Ms. Ding Dan (50% and 50% equity respectively through Xinqian Industry) held 41.1% of the shares, Mr. Wang Xiaoqiang held 6.9% directly, and Juhexing Investment (of which Ms. Ding Dan is the only general partner, and 18 limited partners hold approximately 26.1% in total) held 6.8%.
The above shareholders form a controlling group and collectively hold approximately 54.8% of the shares.
Xiuneng Investment, holding 2.3% of the shares;
Guoxin Hongsheng, holding 9.8% of the shares;
Fuxing Investment, holding 6.0% of the shares;
Xingzheng Strategic Entrepreneurship, holding 5.7% of the shares;
Xingzheng Saifu Investment, holding 4.5% of the shares;
Xingzheng Saifu Investment No.1, holding 1.2% of the shares;
Xiuneng Investment, holding 2.3% of the shares;
Zhang Chaoyi (executive director and general manager of Chengdu Feiste New Materials), holding 4.3% of the shares;
He Qingfeng (Mr. Wang's sister-in-law/brother-in-law), holding 3.8% of the shares;
Yang Haijun (senior management and supervisor of Tianhong Fund Management), holding 2.2% of the shares;
Huang Wenzeng (executive director and general manager of Xiamen Haixian Investment Development), holding 1.4% of the shares;
Chen Yiyuan (director of Zhejiang Yuandesen Technology), holding 1.4% of the shares;
Huang Yanlu (an individual investor), holding 1.4% of the shares;
Chen Lijun (executive director and CFO) holds 1.2% of the shares.
Management Team
The Board of Directors of Xinqian Technology consists of nine directors, including:
5 executive directors: Mr. Wang Xiaoqiang (Chairman of the Board and General Manager), Mr. Wang Hao (Deputy General Manager, Mr. Wang Xiaoqiang's son), Ms. Chen Lijun (CFO), Mr. Wu Dingfeng (Mr. Wang Xiaoqiang's cousin), and Ms. Zuo Yue (Mr. Wang Xiaoqiang's niece);
1 non-executive director: Mr. Xiao Fan;
3 independent non-executive directors: Dr. Song Jingjin, Dr. Li Ling, and Mr. Lu Jiongyu;
3 members of the supervisor: Mr. Shi Yueqiang, Ms. Guo Lideng, and Mr. Liu Huojin;
In addition to the executive directors, the management team also includes Mr. Huang Donggen (Deputy General Manager), Mr. Wan Zhixin (General Manager Assistant), and Mr. Zheng Mo (Secretary of the Board of Directors and Deputy General Manager).
Corporate Performance
According to the prospectus, Xinqian Technology's revenue for 2021, 2022, and 2023 were RMB 661 million, RMB 761 million, and RMB 447 million, respectively. The corresponding net income were RMB 19.08 million, RMB 122.02 million, and RMB 44.66 million.
Intermediary Team
Xinqian Technology's IPO intermediaries team mainly includes: Cmbc Capital as its exclusive sponsor; Tian Jian as its auditor; Guo Hao, Guo Hao (Hong Kong) as its Chinese and Hong Kong lawyers, respectively; Jingtian Gongcheng, Zhao Buyu and Ma Guoqiang as its brokerage Chinese and Hong Kong lawyers, respectively; and Zhuo Shi Consulting as its industry consultant.