Kingfa smoothly completed a public offering on February 14th, 2012, according to CCM International’s March issue of Biomaterials China News.

Guangzhou, Guangdong -- (SBWire) -- 03/21/2012 --Kingfa Sci.&Tech.Co., Ltd. (Kingfa), the largest modified plastics producer in China, successfully completed a public offering on February 14th, 2012, according to CCM International’s March issue of Biomaterials China News.

In order to accelerate its five expansion projects, Kingfa announced to raise about USD490 million by a public offering on February 10th, 2012.

Guangfa Securities Co., Ltd. (Guangfa Securities), one of the China's large security companies and the leading underwriter for the public offering, held 5.7% of Kingfa's total shares through underwriting about 38% of the total issuing stock in the public offering, according to an announcement of Kingfa on February 17th, 2012. Besides, the announcement disclosed that these issuing stocks will be formally listed at A share market on February 29th, 2012. In general, investors of the public offering are optimistic on Kingfa's prospect because of its good business performance in 2011 and improvement of product structure.

The net profit in 2011 may significantly increase by above 60% year-to-year, according to an announcement of Kingfa on January 31st, 2012. The announcement disclosed that the increasing net profit was mainly attributed to sharp sales growth in 2011 and share transfer of an real estate company in Changsha, Hunan Province

Meanwhile, Kingfa has been investing in developing new products in recent years, such as biomaterials and special engineering plastics, in order to improve product structure and increase sales income. Especially, the development of these new products will get more support from the Chinese government in the next several years, according to the "Twelfth Five-Year Plan for New Materials Industry" released on February 22nd, 2012.

As for biomaterials, Kingfa is mainly focusing on modified PLA (polylactic acid) and PBS (poly(butanediol succinate)).

Kingfa has achieved quantity production of modified PLA by January 2012, according to Mr. Liang, Sales Manager from Kingfa. It is reported that Kingfa's capacity of modified PLA reaches 5,000t/a currently.

Moreover, Zhuhai Wantong Chemical Co., Ltd. (Zhuhai Wantong), a subsidiary of Kingfa, is still constructing a new PBS resin production line with capacity of 90,000t/a, which may be launched in October 2012. In fact, Zhuhai Wantong has launched a PBS resin production line with capacity of 30,000t/a in October 2011.

Based on the above facts, these new products will gradually lay a solid foundation for increase of Kingfa's sales in the future. On the other hand, the investors of Kingfa may obtain a lot of their returns in the next several years.

Source: Biomaterials China News
http://www.cnchemicals.com/Newsletter/NewsletterDetail_245.html

Main content of Biomaterials China News 1203:
BDO capacity to increase rapidly in China
Latest development of China's PLA industry
China releases Twelfth Five-Year Plan for New Materials Industry
Hunan Xiangwei to launch new PVA production lines in March 2012
Shandong Guangyin launches long carbon chain nylon production lines in February 2012
Zhongshan Jiuhe finishes its trial production
Xinfu Pharmaceutical suspends investment in PBS downstream products
Kingfa smoothly finishes public offerings
Domestic caoutchouc price continues to rise in 2012
Chinese Ministry of Commerce made an investigation on final review of anti-dumping measures on potato starch from theEU
China's cotton price to decrease in 2012
HIT made a breakthrough in L-lactic acid industrialization

(Guangzhou China, March 9, 2012)

Biomaterials China News, with 12 to 14 topics in one issue, published on the 8th every month, will bring you the latest information on the latest market dynamics, company dynamics, new biomaterials products, new biomaterials technology development, new legislations and policies and raw material supply dynamics that are shaping the market.

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