A few days ago, Hubei Kailong Chemical Group Co., LTD. (referred to as “Kailong Shares”, 002783.SZ) issued an announcement saying that the Shenzhen Stock Exchange’s issuance and listing review institution has reviewed the company’s application documents for issuing shares to specific objects, and believes that the company meets the issuance conditions, listing conditions and information disclosure requirements. Subsequently, the Shenzhen Stock Exchange will report to the China Securities Regulatory Commission in accordance with the relevant registration procedures.

Take advantage of the trend, and actively expand production capacity

Kailong shares previously announced that the company intends to issue no more than 117 million shares to no more than 35 specific objects, including the controlling shareholder Zhongjing Group and its concerted action person Shao Xingxiang, and raise no more than 850 million yuan. The raised funds will be used for the technical transformation project of the electronic detonator production line of Huludao Linghe Chemical Group Co., LTD., the construction project of the annual output of 5 million tons of fine chemical limestone production line, the intelligent technology transformation project of industrial explosives and products production line, and the supplement of working capital.

In the face of the development trend of restructuring and integration of the civil explosive industry, Kailong Shares actively expand production capacity and optimize production structure, improve business scale, and plan industry mergers and acquisitions integration. According to the “Fourteenth Five-Year Plan” of the civil explosive industry, during the “Fourteenth Five-Year Plan” period, we will continue to increase restructuring and integration efforts in accordance with the principle of government guidance and voluntary enterprise, give policy support to leading backbone enterprises and enterprises that complete substantive restructuring and integration and implement “dismantling and withdrawal points and reducing certificates”, promote the concentration of market elements to advantageous enterprises, and further reduce the number of enterprises. Form 3-5 large civil explosive integration enterprises (groups) with strong industry driving force and international competitiveness. At present, Kiron is the only enterprise in the whole industrial chain of the national civil explosive industry, and has formed the whole industrial chain development mode of synthetic ammonia, ammonium nitrate and compound fertilizer, civil explosive equipment, blasting services, mining and dangerous and dangerous goods transportation, and is the leading enterprise of civil explosive in Hubei Province and the key backbone enterprise of the national civil explosive industry.

Kailong has a licensed production capacity of 234,200 tons of industrial explosives per year (including 60,000 tons of mixed explosives), with four varieties of emulsion explosive, expanded explosive, modified ANFO explosive and seismic explosive column; It has a digital electronic detonator production license capacity of 7.08 million rounds, detonator detonator (export only) production license capacity of 5 million rounds, plastic detonator production license capacity of 370 million meters, industrial detonator cable production license capacity of 20 million meters, trunk detonator production license capacity of 4,500 tons.

Linghe Chemical technology transformation project completed acceptance

In response to policy guidance and industry development trends, Kailong Shares always adhere to the cultivation of internal skills to achieve industrial upgrading and technological innovation. According to the official wechat news of Kailong Shares, on December 25, 2023, Huludao Linghe Chemical Group Co., LTD., a subsidiary of Kailong Shares, successfully passed the test production condition assessment of the emulsion explosive production line technical transformation project and the acceptance of some equipment and facilities. In this technical transformation project, the addition of liquid oil phase storage tank for the first time in Liaoning Province, the successful application of this technical achievement can greatly reduce the heat energy cost used to melt solid oil phase, but also reduce one production staff, thereby reducing labor costs, contributing to the high-quality development of Linghe Chemical.

Kiron shares said that in the future development process, the company will further make the coarse and long industrial chain, take the production of civil explosive equipment as the industrial base, and strongly promote and improve the development model of the whole industrial chain of “science and technology research and development, chemical industry upgrading and expanding regulations, civil explosive equipment industry restructuring and strengthening, engineering blasting service upgrading, mining industry expanding and strengthening, and logistics industry expanding in all directions”. At the same time, the company will focus on the implementation of the industrial chain to make rough plans, increase investment in research and development, achieve the “technology leadership” strategy, and consolidate and enhance the industry’s dominant position.