Aurora Group's IPO terminated: Half-year revenue of 2.159 billion yuan, Yu Yongfa controls 79% equity

Lei Di Network Lei Jianping March 30

Anhui Shuguang Chemical Group Co., Ltd. (hereinafter referred to as: “Shuguang Group”) was recently terminated from its IPO application, and Shuguang Group had previously planned to list on the SSE.

Shuguang Group originally planned to raise RMB 1.5 billion, including RMB 370 million for the 100,000-ton/year BDO co-production with 120,000-ton/year PBAT project, RMB 715 million for the 46,000-ton/year PTMEG project, RMB 65 million for the R&D center construction project, and RMB 350 million for supplementing working capital.

Half-year revenue: RMB 2.159 billion

Shuguang Group is a chemical enterprise with nearly 70 years of history. It has long been committed to in-depth development in the cyanide chemical and coal chemical fields, and has over 40 years of experience in cyanide production. The cyanide chemicals business segment has always been a stable and important source of the company’s profits.

Since the 1990s, Shuguang Group has collaborated with Sinopec to establish Anqing Shuguang in order to utilize hydrogen cyanide acid as a byproduct of Anqing Petrochemical; then in 2009, to address the spare hydrogen supply issue at Anqing Petrochemical, it launched a coal-to-hydrogen project and a 2-octanol and decanol project.

Based on the above cooperation background, Shuguang Group purchases hydrogen cyanide acid from Anqing Petrochemical to produce sodium cyanide, sells hydrogen to it, obtains propylene supplied by it to produce 2-octanol and decanol, and sells the 2-octanol and decanol through China Petrochemical’s subsidiary Huaxiao Jiangsu Co., Ltd. as its agent. In addition, it also purchases propylene from the market via Huaxiao East China. As a result, related-party transactions account for a relatively large proportion and customer concentration is relatively high.

The prospectus shows that Shuguang Group’s revenue in 2022, 2023, and 2024 was RMB 3.658 billion, RMB 3.547 billion, and RMB 3.539 billion, respectively; net profit was RMB 361 million, RMB 505 million, and RMB 439 million, respectively; and after non-recurring items net profit was RMB 141 million, RMB 175 million, and RMB 179 million, respectively.

Shuguang Group’s revenue in the first half of 2025 was RMB 2.159 billion, its net profit was RMB 120 million, and after non-recurring items net profit was RMB 110 million.

Shuguang Group’s cash dividends in 2021, 2022, and 2023 were RMB 40 million, RMB 50 million, and RMB 137 million, respectively.

Yu Yongfa controls 79% of the shares

Before the IPO, Yu Yongfa directly held 19.56% of the company’s shares. By signing acting-in-concert agreements with 67 other shareholders, he together controlled 79.16% of the voting rights of the company, making him the company’s actual controller.

Although Yu Yongfa is the company’s actual controller as the single largest shareholder of Shuguang Group and, through the acting-in-concert agreements, together controls 79.16% of the company’s voting rights; however, since his direct shareholding in Shuguang Group is only 19.56%, after the completion of this issuance, his shareholding ratio will decrease to a certain extent.

Yu Yongfa was born in May 1949. From June 1973 to December 1973, he interned at the Office for Cleaning Up Assets and Verifying Capital in the Handicraft Industry Bureau in Anqing. From December 1973 to December 1985, he successively served at Shuguang Chemical Factory as a clerk in the Finance Department, an account officer, a deputy section chief, and a section chief. From January 1986 to March 1989, he served as deputy factory manager of Shuguang Chemical Factory. From April 1989 to December 1999, he served as factory manager of Shuguang Chemical Factory.

From April 1994 to November 2016, Yu Yongfa served as chairman and general manager of Anqing Shuguang. From December 2016 to June 2018, he served as chairman of Anqing Shuguang. From January 2000 to August 2022, he served as chairman of Shuguang Group. From August 2022 to the present, he has served as honorary chairman of Shuguang Group. From March 2021 to the present, he has served as chairman of Shuguang Luhua.

Before the IPO, Wang Xiaobo held 3.89%, Chen Changbin held 3.2%, Cheng Niogen held 3.16%, Wang Lin (born in 1963) held 3.01%, Duan Mingwen held 3%, Wu Xuezheng held 2.59%, Cao Jianming held 2.27%, Fan Benfa held 2.25%, and Wang Lin (born in 1967) held 1.55%.

After the IPO, Yu Yongfa’s shareholding will be 14.67%, Wang Xiaobo’s shareholding will be 2.92%, Chen Changbin’s shareholding will be 2.4%, Cheng Niogen’s shareholding will be 2.37%, Wang Lin (born in 1963) will be 2.26%, Duan Mingwen will be 2.25%, Wu Xuezheng will be 1.95%, Cao Jianming will be 1.7%, Fan Benfa will be 1.69%, and Wang Lin (born in 1967) will be 1.16%.

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