On the evening of October 30, Hunan Xiangtou Jintian Titanium Technology Co., Ltd.(hereinafter referred to as "Jintian Titanium Industry") disclosed a letter of intent for the prospectus, and the company launched the issuance with the stock code of 688750.
This public offering of 92.5 million shares, accounting for 20% of the total share capital after this public offering. The preliminary inquiry time is November 5, 2024; the expected issuance date is November 8, 2024, and the Science and Technology Innovation Board will soon be launched.
The prospectus shows that Jintian Titanium is a high-tech enterprise mainly engaged in the research and development, production and sales of high-end titanium and titanium alloy materials. The company's main products are titanium and titanium alloy bars, forged blanks and parts, which are mainly used in high-end equipment fields such as aviation, aerospace, ships and weapons.
It is understood that Jintian Titanium adheres to the business philosophy of "serving the military industry, serving the country with industry, strengthening the army and rejuvenating the country" and develops the market with differentiated competition and technical services. Through years of accumulation and development, Jintian Titanium Industry has become China's high-end titanium alloy bars and forges. One of the main R & D and production bases.
For this IPO, Jintian Titanium Industry plans to raise 1.045 billion yuan, mainly for advanced titanium alloy projects for high-end equipment (Phase I) and supplementary working capital projects. Jintian Titanium said that the company's implementation of this fund-raising investment project will help improve the level of technical equipment, expand the market share of high-end titanium alloy materials, provide high-quality titanium alloy materials for national strategies and national defense strategies, and serve the upgrading of national defense equipment levels., empower the company's business development and efficient management, and consolidate and strengthen the competitiveness of the industry.
Technological advantages establish product quality, and net profit goes hand in hand
Jintian Titanium is mainly engaged in the research and development, production and sales of high-end titanium and titanium alloy materials. The improvement of core technologies is a strong guarantee for Jintian Titanium to maintain its competitive advantage in the high-end market.
Jintian Titanium focuses on the development of strategic and innovative high-end titanium alloy products. It has established a "National Postdoctoral Research Station","Hunan Province Enterprise Technology Center" and "Hunan Province High-end Equipment Special Titanium Alloy Engineering Technology Research Center". It is a national-level specialized and innovative "little giant" enterprise. Jintian Titanium has also established a professional innovative R & D team of 62 people to carry out technical research and development work to ensure that the company's technology and product layout adapt to the industry's technological development trend.
At present, Jintianti has accumulated a profound technical accumulation and has proprietary core technologies. Relying on its key preparation technologies in the fields of high-strength and high-toughness titanium alloys, medium-strength and high-toughness titanium alloys, titanium alloys for engines, titanium alloys for ships, etc., the company independently developed and mass-produced more than 20 core brand products have been used in a variety of new equipment in China.
The prospectus shows that Jintian Titanium Industry has 66 authorized patents, including 43 invention patents, and has successively won the second prize of Hunan Province Defense Science and Technology Progress Award, the first prize of Hunan Province Science and Technology Progress Award, and the first prize of China Nonferrous Metals Industry Science and Technology Award. It has first prize and other honors. It has established the "National Postdoctoral Scientific Research Station","Hunan Province Enterprise Technology Center" and "Hunan Province High-end Equipment Special Titanium Alloy Engineering Technology Research Center". It is a national-level specialized and innovative "little giant" enterprise.
Relying on its technological advantages in the field of high-end titanium alloy materials, Jintian Titanium closely focuses on the national strategy, targets China's high-end equipment market, always adheres to product and technological innovation, and has undertaken and completed the research and development of key materials for many national key models of equipment. Production tasks, forming a complete business system integrating scientific research and production, has participated in the formulation of 16 national standards and 3 industry standards in the field of titanium alloy materials, deeply leading the titanium alloy industry.
With its profound technical advantages and excellent product quality, Jintianti has established a good brand image and enjoyed a high reputation in the high-end market. At the same time, Jintian Titanium has accumulated rich and high-quality customer resources and has established long-term and stable cooperative relationships with many large state-owned key groups such as the aviation industry, China Aviation Development, China Shipbuilding, and China Weapons, as well as well-known listed companies such as Triangle Defense (300775.SZ), Parker New Materials (605123.SH), and Aerospace Technology (688239.SH).
Empowered by core technologies, in the first half of 2021-2024 (hereinafter referred to as the "reporting period"), Jintian Titanium Industry's operating performance has steadily improved, with operating income for each period of 572.5046 million yuan, 700.8274 million yuan, 801.1344 million yuan and 409.1808 million yuan respectively, with an average annual compound growth rate of 18.29% in the past three years; The net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses in each period was 87.973 million yuan, 109.258 million yuan, 133.9447 million yuan and 71.6625 million yuan respectively. The compound annual growth rate in the past three years was 23.39%, and revenue and net profit went hand in hand.
Fundraising projects comply with policy guidance and are in line with the national scientific and technological innovation strategy
China's high-end new materials industry has long had problems such as weak material support and guarantee capabilities, the control of key materials by others, and poor independent controllability of the industrial chain.
In order to break this pattern, industry and government authorities have issued the "Guidance Catalogue for the First Batch of Application Demonstration of Key New Materials (2024 Edition)" and "New Material Standards Pilot Action Plan. A series of industrial policies such as (2018-2020)"set development goals for comprehensive support capabilities for key strategic materials, clarify the development priorities and application scenarios of key strategic materials, accelerate the development of the new materials industry, and then promote technological innovation and support Industrial upgrading to build a manufacturing power.
In addition, in 2021, China's "14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of Long-term Goals for 2035" made strategic arrangements for accelerating the modernization of national defense and the military. For the first time, it proposed to "ensure the realization of the centenary goal of building the army in 2027." In addition, it mentioned "comprehensively strengthening military training and preparation" and "accelerating the upgrading of weapons and equipment and the development of intelligent weapons and equipment." To achieve the century-old goal of building the army, we must provide strong material and technical support with advanced weapons and equipment systems.
Jintian Titanium's main products are key products supported in the above-mentioned national science and technology innovation strategy documents. The main products are in line with the strategic development and deployment of the national science and technology innovation strategy and will benefit from the country's policy orientation in the field of new materials and national defense modernization. The promulgation and implementation of industrial policies provide strong policy support for the company's business development.
Strategic emerging industries represent the direction of a new round of scientific and technological revolution and industrial transformation, and are key areas for cultivating new momentum for development and gaining new competitive advantages in the future. In November 2016, the State Council issued the "13th Five-Year Plan for the Development of National Strategic Emerging Industries", which pointed out in the "Promoting the Quality and Efficiency of the New Materials Industry" section of "Improving the Basic Support Capacity of New Materials" that "Facing aerospace, rail" The development needs of industries such as transportation, power electronics, and new energy vehicles will expand the scope of large-scale applications such as high-strength light alloys, high-performance fibers, and special alloys, and gradually enter the global high-end manufacturing procurement system."
Subsequently, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Science and Technology, and the Ministry of Finance jointly formulated the "Guidelines for the Development of New Materials Industry", which listed key strategic materials as three key development directions, emphasizing: "Closely focusing on major issues such as high-end equipment manufacturing. Demand, focusing on special alloys for high-end equipment such as high-temperature and corrosion-resistant alloys, high-strength light alloys, etc."
For this IPO, Jintian Titanium Industry plans to raise 1.045 billion yuan, mainly for advanced titanium alloy projects for high-end equipment (Phase I) and supplementary working capital projects.
The products of this raised funds and investment project are high-end titanium alloy bars and forges. The application areas focus on high-end equipment fields such as aviation, aerospace, warships and weapons. They comply with national industrial policies and planning guidelines, and are conducive to improving the industrialization of titanium alloy materials. and scale application.
During the "14th Five-Year Plan" period, with the implementation of the national strategy to accelerate the modernization of weapons and equipment, the iterative upgrading of aerospace, weapons and other equipment is imminent, and the demand for high-end titanium alloy materials has increased sharply. Jintian Titanium Industry's implementation of this fund-raising investment project will help improve the level of technical equipment, expand the market share of high-end titanium alloy materials, provide high-quality titanium alloy materials for national strategies and national defense strategies, and provide guarantee for the upgrading of national strategic equipment.
Batch delivery of internally-developed products/in-house products helps upgrade national strategic equipment
As one of the major suppliers in the high-end titanium alloy materials industry, Jintian Titanium has always been committed to solving bottlenecks in industrial development and improving the guarantee capabilities of key strategic materials.
Throughout the development history of Jintian Titanium Industry, it has been sparing no effort to contribute its strength to the domestic strategy.
Entering the 21st century, as China's fighter jets, transport aircraft, armed helicopters/transport helicopters, trainer aircraft and other series of new aircraft have been successfully developed and gradually started to test flight and train, the demand for high-end titanium alloy materials for new military aircraft has begun to grow.
Jintian Titanium has keenly seized the market opportunity of high-end titanium materials in the field of new military aircraft in China. It started project construction in 2008 and invested in the purchase of core equipment such as vacuum consumable arc furnaces and fast forging machines. From 2011 to 2012, three new production lines of smelting, forging and precision forging have been built one after another. With the continuous acquisition of relevant R & D and production qualifications, the company has completed the development and supply qualification certification of major grades of titanium alloy materials such as TC18 and TA15, and related products have begun to be initially used in high-end equipment fields such as aviation and aerospace.
As a series of key models of military aircraft such as new transport aircraft, helicopters, and fighter jets that have been successfully developed and mass-produced in small scale during the "Thirteenth Five-Year Plan" period began to be equipped, and the equipment deployment during the "14th Five-Year Plan" period has shifted from the past "development, finalization and small batch construction" to "war readiness capabilities, i.e. mass construction", the aforementioned new military aircraft began to be installed in large quantities, and the demand for high-end titanium alloy materials for military aircraft has increased rapidly.
Through years of hard work and profound technical accumulation, the various brands of products developed and produced by Jintian Titanium Industry have gradually passed assessment and verification and entered batch production, accelerating the localization process of new titanium alloy materials for military aircraft.
Jintian Titanium Industry closely focuses on the national strategy, targets the high-end equipment market in China, always adheres to product and technological innovation, undertakes and completes the research and production tasks of key materials for many national key models of equipment, and forms a complete business system integrating scientific research and production.
The company's major grades of titanium alloy products such as TC18, TC4, TA15, and TC11 have been widely used in China's aircraft structural parts, fasteners and aero-engine parts, providing important materials for the first flight and mass production of many new fighter jets, transport aircraft, trainer aircraft and amphibious aircraft in China.
Among them, the performance indicators of TC18 titanium alloy material have reached the advanced level in China, and have become the main supply material of titanium alloys for some models of equipment in the aviation field; the TB17 ultra-high-strength and tough titanium alloy material has achieved the first breakthrough in strength and toughness indicators in China; The performance indicators of TC32 low-cost, medium-strong and high-toughness titanium alloy are better than those of active medium-strong structural titanium alloys.
Since 2021, Jintian Titanium has successively delivered batches of titanium alloy ultra-high pressure cylinders to subordinate units of ships in China. This part has excellent performance and strong corrosion resistance, and it has realized the first time that a certain type of ship is equipped with steel cylinders.
Jintian Titanium's aforementioned products have strongly supported the upgrading of China's defense equipment and ensured the supply of key materials for China's defense equipment.
