CAC Nantong's successful IPO on ChiNext: Raising over 1 Billion RMB for fungicide projects

On January 8th, CAC Nantong Chemical Co., Ltd. (hereinafter referred to as ″CAC Nantong") has successfully obtained approval from the China Securities Regulatory Commission (CSRC) for its initial public offering (IPO) on the ChiNext board. The company plans to raise over 1 billion RMB, with the funds primarily allocated to fungicide projects.

CAC Nantong is a leading enterprise in the agrochemical sector, specializing in the research, development, production, and sales of pesticide products and functional chemicals. The company holds a dominant position in the industry with its core products, including chlorothalonil, azoxystrobin, and 2,4-D, boasting advanced production scales and comprehensive technologies.

The company's controlling shareholder is CAC Group, and the actual controller is Tian Xiaohong, who indirectly holds 100% of the shares in CAC Group.

In 2024, CAC Nantong's estimated operating revenue is 3.87 billion yuan, an increase of 2.61% compared to the previous year; the estimated net profit is 284.52 million yuan, a decrease of 15.77% compared to the previous year; the estimated net profit attributable to the parent company's shareholders is 254,48 million yuan, a decrease of 26.55% compared to the previous year; the estimated net profit attributable to the parent company's owners after deducting non-recurring gains and losses is 248,98 million yuan, a decrease of 27.78% compared to the previous year.

In terms of business development, CAC Nantong places a strong emphasis on scientific and technological innovation, striving for technological leadership and product excellence. It possesses three provincial-level technical centers and is equipped with GLP and GEP laboratories certified by the Ministry of Agriculture. The company has established a complete research and development system, covering compound design, biological screening, process research and development, and formulation studies, enabling it to bring innovative compounds from the laboratory to the market. Its proprietary intellectual property rights for the innovative insecticide, cyproflanilide, obtained a special export pesticide registration certificate from the Ministry of Agriculture and Rural Affairs of China in July 2024. The company has also entered into a strategic cooperation with UPL to jointly promote the development, registration, and international commercialization of cyproflanilide products.

In the context of technological and industrial transformation, CAC Nantong adheres to the development foundation of quality, greenness, environmental protection, and safety. Through technological improvements and equipment upgrades, it has grown into a high-end manufacturing enterprise that integrates informatization, intelligence, and automation.

The company actively responds to the national green and low-carbon development concept, gradually achieving the green transformation of traditional chemical manufacturing through technological progress, product structure adjustment, and the use of renewable resources.

CAC Nantong has a complete business system that includes research and development, original drug synthesis, formulation production, and sales. With the arrival of funds raised from this issue and the implementation of the fundraising projects, the company's research and development capabilities and financial strength will be further enhanced, its business scale will expand, and its risk resistance and profitability will be strengthened, thus ensuring its continuous operating capacity.

The company is committed to its mission of "innovating chemical science, creating customer value, and sharing a better life," upholding the corporate spirit of "trust, respect, responsibility, and professionalism." It aims to become a globally outstanding enterprise that satisfies customers, employees, and shareholders. With the core of original drugs, it focuses on developing the international market, realizing the breakthrough of formulations, and extending to the field of functional chemicals based on core technologies and core intermediates, promoting the dual-driven and stable development of the company.