Hong Kong, July 10th – Ruichang International Holdings Limited (“Ruichang International”), a leading manufacturer specializing in comprehensive technical equipment for petroleum refining, petrochemical systems, and industrial thermal energy sectors in China, successfully debuted on the main board of the Hong Kong Stock Exchange (1334.HK) today. The company offered 125 million shares globally, with 12.54% allocated for public sale in Hong Kong and 87.46% for international placement. The public offering in Hong Kong was oversubscribed by an impressive 19.24 times. The final offering price was set at HK$1.05 per share, with trading units of 2,500 shares, raising approximately HK$131 million in total.
Ruichang International’s stock received significant investor interest, closing at HK$1.20 per share, marking a 14.29% increase from the initial price and achieving a peak daily increase of 47.62%.
Three Decades of Market Expertise Leads to Successful Listing in the Petrochemical Equipment Sector
Founded in 1994, Ruichang International has dedicated itself to providing tailored solutions in petroleum refining and petrochemical technical equipment. Over thirty years, the company has cultivated stable business relationships with prominent clients in China’s industry. According to data from Frost & Sullivan, as of 2023, Ruichang International ranks as the third-largest manufacturer of catalytic cracking equipment for Chinese petroleum refining and operations, holding a market share of approximately 7.6%. It is also the second-largest manufacturer of sulfur recovery and volatile organic compound incineration equipment, with a market share of about 3.4%.
Strong Financial Performance and Expansion Plans
In terms of financial performance, Ruichang International reported revenues of approximately RMB 24.8 million in 2021, RMB 41.91 million in 2022, and RMB 54.41 million in 2023, achieving a compound annual growth rate of 48.1%. Adjusted net profits during the same period, excluding IPO expenses, were approximately RMB 1.83 million, RMB 4.59 million, and RMB 6.78 million respectively. The company operates two production facilities in Luoyang, Henan Province, covering a total area of approximately 20,807.4 square meters. To meet growing demand both domestically and internationally, Ruichang International plans to expand its production facilities, enhance its capacity, and strengthen its capabilities in design research and development.
Enhancing Production and R&D Capacities to Foster Sustainable Industry Growth
Industry analysts are optimistic about Ruichang International’s future prospects. As a leading enterprise in China’s petrochemical technical equipment manufacturing industry, its listing is expected to consolidate its market position further with the support of international capital platforms.
According to disclosures in its prospectus, China’s refining capacity increased from 873.4 million tons in 2018 to 936 million tons in 2023, with a compound annual growth rate of approximately 1.4%. With supportive policies such as the “Carbon Peak Action Plan by 2030” issued by the State Council, China’s refining capacity is expected to reach 1 billion tons annually by 2025. Ruichang International is poised to benefit from this industry growth and policy support, aiming to expand its market share.
Looking Ahead
With ample market development opportunities and support from domestic and international capital markets, Ruichang International plans to expand its production capacity, enhance its design and R&D capabilities, and improve market competitiveness and profitability. Leveraging its advanced technological expertise and innovation capabilities, the company aims not only to deepen its presence in the petroleum refining and petrochemical industries but also to serve a broader range of clients in the industrial thermal energy sector. Additionally, it intends to actively expand its footprint in overseas markets, contributing to the sustainable development of China’s petrochemical technical equipment industry.
