JD Capital-Invested Jinneng Tech Gets IPO Approved

2017-04-25

Recently, another good news came from a JD Capital-investee: Jinneng Science and Technology Co., Ltd (“Jinneng Tech”) has got its IPO approved from the Stock Issuance Examination and Verification Committee (SIEVC) of the China Securities Regulatory Commission (CSRC), and is about to be listed on the A-share market.


Jinneng Tech: building an industrial chain of circular economy

Jinneng Tech is a comprehensive chemical enterprise featuring comprehensive resource exploitation and recycling economy. Focusing on coal chemical industry and fine chemical industry, it mainly produces carbon black, coke, p-cresol, sorbic acid (potassium sorbate), and white carbon black (silicon dioxide), which are principally used in several fields including automobile, iron and steel, pharmacy, and food.

To date, Jinneng Tech has formed its unique “3+3” industrial chain of circular economy, which enables efficient low-carbon development with continuous technological innovation while improving resource utility. Combined cycle cogeneration of gas turbines, for example, with an efficiency of 71.42%, is environmental-friendly for less emission of carbon dioxide; Jinshi carbon black produced under the recycling mode boasts stable quality and a low cost, and won the anti-dumping case filed by EU on cresol, making itself the only Chinese enterprise free from anti-dumping duties in the EU, and earning its globally leading position in cresol products.

In recent years, the rapid development of China’s automobile industry drives high-speed growth of the tire industry. Besides, with the additional vehicle holding in China staying at around 20 million in recent years, there is a growing need for tire replacement. It is estimated that in China, around 20 million tires are needed every year. With the steady growth of automobile production, sales and holding in China, plus the structural reform in the tire industry, the carbon black industry is expected to maintain a good profitability

In 2011, a fund managed by JD Capital became one of Jinneng Tech’s shareholders, holding about 6.68% of its shares prior to its listing.

Since 2017, a total of 6 JD Capital-invested enterprises have got their IPO approved at the main board. Previous ones include Kelin Electric, Chengyi Pharmaceutical, Juewei Food, Doctor Glasses and Huida Sanitary Ware. Among these, Juewei Food, Doctor Glasses, Chengyi Pharmaceutical and Huida Sanitary Ware have successfully gone public.