On April 11, Jiangsu Lirui New Materials Co., Ltd.’s application for listing on the Science and Technology Innovation Board was accepted by the Shanghai Stock Exchange. In the past two years, the company's operating income and net profit have increased by about 30% year-on-year,

On April 11, Jiangsu Lirui New Materials Co., Ltd.’s application for listing on the Science and Technology Innovation Board was accepted by the Shanghai Stock Exchange.

Lianrui New Materials is registered in Jiangsu and belongs to the non-metallic mineral products industry. The company's core business is the research and development, production and sales of silica powder products. In the past two years, the company's operating income and net profit have increased by about 30% year-on-year (compared to the same period last year), and R&D investment accounted for about 4%. The major shareholder Shengyi Technology (600183) is a company listed on the Shanghai Stock Exchange. The national team Central Huijin, the well-known public offering Dongfanghong, and the private equity Danshuiquan all hold shares indirectly through Shengyi Technology. Shengyi Technology is also one of the customers of Lianrui New Materials, and its revenue contribution ratio is about 20%. In other words, the company has related transactions.

Lianrui New Materials is still listed on the New Third Board. This time it will be sponsored by Dongguan Securities and move to the Science and Technology Innovation Board. It plans to raise a financing amount of 285 million yuan and plans to issue no more than 21.4934 million shares.

Net profit growth in the past two years has been around 30%

Financial data from the prospectus in the past three years show that Lianrui New Materials’ operating income and net profit have increased by around 30% year-on-year in the past two years.

In 2016, the company's operating income was 154 million yuan and net profit was 32.709 million yuan. In 2017, the company's operating income was 211 million yuan, a year-on-year increase of 37.32%; net profit was 42.2489 million yuan, a year-on-year increase of 29.17%. In 2018, the company's operating income was 278 million yuan, a year-on-year increase of 31.83%; net profit was 58.3665 million yuan, a year-on-year increase of 38.15%.

In the above three years, Lianrui New Materials paid cash dividends every year. The dividend scale from 2016 to 2018 reached 3.45 million yuan, 11.996 million yuan and 11.996 million yuan respectively.

However, the company’s R&D investment is not high. The proportion of R&D investment in operating income within three years was around 4%, and the 2018 figure was 3.8%.

Liangrui New Material’s main products include crystalline silica powder, fused silica powder and spherical silica powder.

Among them, the sales revenue of fused silica powder accounts for the highest proportion, accounting for half of the country. Data in 2018 shows that crystalline silica powder accounted for 19.18% of revenue, fused silica powder accounted for 48.14%, spherical silica powder accounted for 25.54%, and the other 7.14% of revenue came from other products.

According to reports, these products can be widely used in copper-clad laminates for electronic circuits, epoxy plastic sealants for chip packaging, as well as electrical insulation materials, adhesives, ceramics, coatings and other fields. The terminals are used in consumer electronics, automotive industry, aerospace, Wind power generation, national defense and military industry and other industries. The prospectus of

disclosed that the company has currently cooperated with world-class semiconductor plastic sealant manufacturers Sumitomo Electric, Hitachi Chemical, Panasonic Electric, KCC Group, Warwick Electronics, and the world's top ten copper-clad laminate companies Kingboard Group, Shengyi Technology, Nanya Group, and Lianmao Group, Jinan Guoji, Taiyao Technology , South Korea's Doosan Group and other companies have established cooperative relationships.

moved from the New Third Board to the Science and Technology Innovation Board

Lianrui New Materials is still listed on the New Third Board and is currently suspended. The

prospectus shows that on December 23, 2014, the stock transfer system issued "Share Transfer System Letter [2014] No. 2467" "Letter Concerning Approval for Jiangsu Lirui New Materials Co., Ltd.'s Stock to be Listed on the National Equities Exchange and Quotations" , agreed that the shares of the joint-stock company should be listed on the stock transfer system, the securities abbreviation is "Liangrui New Materials", and the securities code is "831647".

On January 15, 2015, the company was listed on the stock transfer system and publicly transferred.

In May 2015, Lianrui New Materials issued 2.5 million shares in a targeted manner, which were subscribed by four securities firms. Among them, Dongguan Securities subscribed for 1.5 million shares, Essence Securities subscribed for 400,000 shares, GF Securities subscribed for 300,000 shares, and Qilu Securities (now Zhongtai Securities) subscribed for 300,000 shares. The major shareholder of

is the Shanghai-listed company

Lianrui New Materials, which was established in April 2002. Shengyi Technology invested with monetary assets and holds 72.73% of the shares. Silica Micro Powder Factory invested with physical and intangible assets and holds 27.27% of the shares.

1 month later, Shengyi Technology transferred 36.36% of its equity to Li Xiaodong, an investor in the silica powder factory.

Currently, Li Xiaodong directly holds 17.35 million shares of Lianrui New Materials, accounting for 26.91% of the company's total share capital. Li Xiaodong was born in 1975 and serves as the chairman, general manager and core technical staff of Lianrui New Materials.

In addition, Li Xiaodong also indirectly holds 15 million shares of Lianrui New Materials through his wholly-owned silicon powder factory, accounting for 23.26% of the company's total share capital.

In other words, Li Xiaodong directly and indirectly holds 50.17% of the total shares, and is the controlling shareholder and actual controller of Lianrui New Materials.

In addition, Lianrui New Materials’ major shareholders holding more than 5% of the shares include Shengyi Technology. The

prospectus disclosed that Shengyi Technology holds 20 million shares of Lianrui New Materials, accounting for 31.02% of the company's total share capital.

As of December 31, 2018, there are many well-known institutions among the top ten shareholders of Shengyi Technology.

National Team Central Huijin Asset Management Co., Ltd. is the fifth largest shareholder of Shengyi Technology.

Star Public Offering Dongfanghong also has products participating. Dongfanghong Ruifeng Flexible Allocation Hybrid Securities Investment Fund holds 1.42% of the shares of Shengyi Technology, making it the company's sixth largest shareholder.

In addition, Tamsui Spring Selection Phase 1, a product of the well-known private equity institution Tamsui Spring, is also among the top ten shareholders.

It is worth mentioning that Shengyi Technology and its affiliated companies are not only major shareholders, but also one of the major customers. The information in the

prospectus shows that during the reporting period, the total sales revenue of Lianrui New Materials to Shengyi Technology and its affiliated companies were 35.9879 million yuan, 43.7507 million yuan, and 55.4041 million yuan respectively, accounting for 23.42% and 20.74% of the operating revenue respectively. % and 19.92%.

In other words, Lianrui New Materials has related sales.