On February 2, 2024, Belite Chemical Co., Ltd. (hereinafter referred to as "Belite Chemical") received a second round of inquiry letters from the Shenzhen Stock Exchange one week after updating its prospectus. As of press time, there has been no public response. .

The prospectus shows that Belite Chemical was established in 2003. The company¡¯s main business is the research and development, production and sales of cyanamide products. Its main products include neonicotinoid insecticides and pesticide intermediates methyl Nitroguanidine, imidazolidine, oxadiazine, cyanoethyl ester and dicyandiamide, nitroguanidine, guanidine nitrate and calcium cyanamide are used in pesticides, medicines, coatings, fertilizers, electronics, textile printing and dyeing and other fields. Sponsored by Haitong Securities, 769 million yuan is planned to be raised, which will be used for the construction project of downstream guanidine-based products with an annual output of 102,000 tons of cyanamide by its subsidiary Belite Biotech and the construction project of Ningxia green cyanamide chemical new material pilot base , cyanamide downstream product supporting facilities upgrade project, and supplement its own working capital.

Financial report data shows that from 2020 to June 2023, Belite Chemical achieved operating income of 658 million yuan, 989 million yuan, 1.145 billion yuan, and 445 million yuan respectively, and achieved a net profit attributable to the parent company of 27 million yuan. , 66 million yuan, 136 million yuan, 27 million yuan, net cash flow from operating activities was 15 million yuan, 14 million yuan, 76 million yuan, 17 million yuan. After entering 2023, the company's performance has experienced a relatively obvious decline. From January to June 2023, the company's operating income and net profit decreased by 23.23% and 51.96% respectively compared with the same period in 2022. It dropped 56.14% over the same period last year.

Belite Chemical explained that the company's performance decline was mainly due to the decline in product prices. In the first half of 2023, affected by factors such as the increasing downward pressure on the global economy and the slowdown in overall demand growth in the pesticide market, the prices of the company's main products decreased year-on-year. The average unit price of imidazolidine products decreased by 33.71%, and the average unit price of oxadiazine products decreased by 26.74%. , the average unit price of methyl nitroguanidine products decreased by 27.78%, the average unit price of cyanoethyl ester products decreased by 22.37%, the average unit price of dicyandiamide products decreased by 29.94%, and the average unit price of calcium cyanamide products decreased by 13.68%. Despite this, the company's operating performance remains at a relatively high level and its fundamentals have not changed significantly. It is also a large-scale company and is a high-quality enterprise that is representative of the industry.

In the first round of inquiries, the Shenzhen Stock Exchange distributed cash dividends of 20 million yuan and 40.0225 million yuan to Belite Chemical in 2021 and 2022 respectively. This time, another 90 million yuan of funds raised is planned to be used for supplementary Concerns were expressed about issues such as working capital and actual controller Li Yuzhong¡¯s borrowing from the company totaling 18.32 million yuan in 2020.

Belite Chemical responded that during the reporting period, the company's profitability was good, the amount of undistributed profits was large, the monetary funds were sufficient, it had the ability to pay dividends to return shareholders, and the company's cash flow was in good condition. , the balance of cash and cash equivalents at the end of the period was relatively high. Taking into account the working capital needs and the long-term interests and sustainable development of the company, cash dividends were distributed to shareholders. At the same time, the investment project with funds raised from this issuance is formulated based on the industry development prospects and the issuer's business development plan. The sales percentage method is used to calculate the scale of supplementary working capital. It is cautiously estimated that the average revenue growth rate from 2023 to 2025 is 15.00%. Calculate the values of operating current assets and operating current liabilities for the three years from 2023 to 2025, calculate the working capital for each of the next three years through the difference between operating current assets and operating current liabilities, and raise funds accordingly. Cash dividends and fund raising to supplement working capital are determined based on different reasons, and both are necessary and reasonable. The actual controller of the company, Li Yuzhong, borrowed funds from the company to meet the needs of purchasing real estate, repaying bank loans and daily life funds. In July 2022, the actual controller of the company Li Yuzhong has repaid all the occupied company funds and interest, and has not added any new funds since then. Fund occupation behavior. The company has formulated effective rectification measures and corrected irregular behaviors in a timely manner. The actual controllers Li Yuzhong and Sun Min and the controlling shareholder Belite Investment issued a "Letter of Commitment on Not Taking Up the Company's Funds" on March 23, 2023. It promised to avoid capital occupation, reduce and standardize related transactions, and agreed on measures for breach of commitments to effectively protect the interests of the company and other shareholders of the company.

The prospectus shows that the company¡¯s second largest shareholder Hanyu Group is also an important customer of the company. During the reporting period, Youju New Materials sold modified PA, modified PP and other products to Hanyu Group for 7.3081 million yuan respectively. , 9.2923 million yuan, 4.3704 million yuan, 2.0702 million yuan. Relatedly, in March 2016, Hanyu Group invested in Youju New Materials for 5.25 yuan/registered capital. In January 2017, Jiangjin Investment invested 26.6 yuan/registered capital for Youju New Materials. In 2015 and 2016, Youju New Materials The net profits of Juxin Materials were 897,400 yuan (unaudited) and 686,600 yuan (unaudited) respectively. The profit level in 2015 was higher than that in 2016, while the share price of Hanyu Group in 2016 was significantly lower than that of Jiangjin Investment in 2017 The annual shareholding price was required by the Shenzhen Stock Exchange to further demonstrate the fairness of Hanyu Group¡¯s shareholding price, whether Hanyu Group will provide customers, suppliers, technology, personnel, factories or other types of resources to the issuer after taking shares, and whether there are other interest arrangements. Whether it constitutes share-based payment.

Youju New Materials replied that the pre-money price-to-earnings ratio corresponding to the share price of Hanyu Group in 2016 was 58.50 times, and the share price was fair; Jiangjin Investment¡¯s share price in 2017 was based on the company¡¯s production capacity. Factors such as expected substantial growth, industrialization of PSU and PES, breakthroughs in key technologies, etc. are determined through consultation with the company; it is reasonable that Hanyu Group's share price is lower than that of Jiangjin Investment. At the same time, from the time Hanyu Group took a stake in the company in March 2016 to 2018, the company did not sell it and had no business dealings with Hanyu Group. In 2019, the company expanded its general engineering plastics business and began to sell general engineering plastics such as modified PA and modified PP to Hanyu Group. The related transaction prices are fair.

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