The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on December 28, Anhui Conch Material Technology Co., Ltd. (“Conch Material Technology” for short) submitted a listing application to the main board of the Hong Kong Stock Exchange, and CITIC Construction Investment International is its sole sponsor.

According to the prospectus, Conch Material Technology is the only supplier of new fine chemical materials in the world covering the entire cement admixture and concrete admixture industry chain, integrating R&D, production, sales and technical support. During the track record period, the company mainly sold cement admixtures and concrete admixtures and their related process intermediates, namely alcoholamine products, polyether monomers, and polycarboxylic acid mother liquor in China.

In terms of production capacity, as of the last practical date (December 19, 2023), Conch Material Technology has 10 production plants for the production of cement and concrete admixtures and related process intermediates across China. As of the last practical date, the department had 20, 22, 16, 5 and 45 production lines for the production of cement admixtures, concrete admixtures, alcoholamine products, polyether monomers and polycarboxylic acid mother liquor, respectively.

In terms of the competitive landscape, according to Frost & Sullivan, the global cement admixture market is highly concentrated. As of December 31, 2022, the world's top five cement grinding aid suppliers (that is, the main type of cement admixture) accounted for about 50.0% of the world's total cement grinding aid production, while the top five cement grinding aid suppliers in China accounted for about 45.8% of the total cement grinding aid production in China. According to Frost & Sullivan, there are many participants in the concrete admixture market. There are about 4,000 concrete admixture suppliers in China, and the market is relatively scattered. In recent years, the market share of high-performance concrete water reducing agents has been increasing due to their satisfactory performance. In the future, the market share of high-performance concrete water reducing agents is expected to increase further.

According to Frost & Sullivan's data, based on the production of cement grinding aids (the main type of cement admixture) in FY2022, Conch Material Technology ranked first in China and second in the world, with market shares of 31.3% and 16.0% respectively. Meanwhile, based on the production of alcoholamine products (raw materials for cement admixtures) in FY2022, the company ranked first in China, with a market share of 29.0%. Furthermore, based on the production capacity of high-performance concrete water reducing agents (the main type of concrete admixture) in FY2022, it ranked 7th in China, with a market share of 2.3%. Based on the production of polyether monomers (raw materials for concrete admixtures) in FY2022, it ranked sixth in China, with a market share of 3.4%.

On the financial side, in fiscal year 2020, fiscal year 2021, fiscal year 2022, and the six months of 2023, Conch Material Technology achieved revenue of about 1,302 billion yuan, 1,538 billion yuan, 1,840 billion yuan, and 1,036 billion yuan respectively; during the same period, profit during the year was approximately RMB 142 million, RMB 127 million, RMB 92.4 million, and RMB 47.7 million, respectively.

According to Conch Material Technology's prospectus, during the track record period, Hailuo Cement Group was the company's largest customer in each year/period, and as of the last practical date, about 36.4% of the shares were held by Conch Group, one of the company's controlling shareholders. Since the second half of 2018, the company has been a supplier of additive products for the Conch Cement Group. In view of the extensive ties between Hailuo Cement Group and the Division, Hailuo Material Technology's business operations are directly affected by Hailuo Cement Group's business operations, business performance and prospects. Furthermore, if there are any significant changes in the arrangements between Hailuo Cement Group members and the company, the company may be significantly affected.