IPO: Tianfang Listed On Beijing Stock Exchange

On October 31, tianfangbiao testing and Certification Co., Ltd. (hereinafter referred to as "tianfangbiao") landed in Beijing stock exchange and held a bell ringing ceremony for listing. It was officially listed for trading (Stock Code: 871753), becoming "the first stock in Tianjin of Beijing stock exchange".

The issue price of Tianfang samples is 10 yuan / share, the price earnings ratio is 23.84 times, the number of shares issued is 13 million shares, and the total amount of funds raised is 130 million yuan. This is after China textile standard, another textile and clothing inspection and testing company came to the Beijing stock exchange.

Tianfang Biao said that the fund-raising was mainly used for the improvement of testing service capacity, the construction of R & D center, and the supplement of working capital. The purpose of the fund-raising was to improve the detection quantity, accuracy and efficiency of existing testing services, expand the testing projects of medical devices and industrial products, and improve the business layout of consumer goods, medical devices and industrial products, In order to improve the overall detection service ability. Among them, the planned construction period of the inspection service capacity improvement project is 3 years.

Founded in April 2014 and headquartered in Tianjin pilot Free Trade Zone, tianfangbiao is a comprehensive third-party inspection and testing service group integrating inspection, testing and related technical services, covering consumer goods, medical devices and industrial products. The service items include mandatory testing, routine testing, functional testing, etc. it has two national testing centers: national knitting product quality supervision and inspection center and national clothing quality supervision and Inspection Center (Tianjin), It is responsible for the establishment, revision and interpretation of a number of testing standards.

The inspection and testing business of Tianfang standard mainly covers consumer goods, medical devices and industrial products, among which textile and garment inspection and testing in the field of consumer goods is the main source of income.

As a third-party testing organization, Tianfang standard is mainly committed to the testing, standard and certification business in the field of textile and clothing. It has professional technical ability and rich experience in fiber content, color fastness, physical properties, chemical properties, microorganisms, protective properties, etc. The relevant responsible person of Tianfang standard once said in an interview that in the inspection and testing of consumer goods, especially in the inspection and testing of textile and clothing, light industrial down and protective articles, Tianfang has obvious competitive advantages. The goal of Tianfang standard is to become a leading domestic and international first-class comprehensive inspection and testing service group company to meet the diversified testing service needs of customers.

"In the past two years, the inspection volume of special textiles and protective articles has increased year by year. Since 2020, tianfangbiao has undertaken a lot of testing business of masks and protective clothing. This year, we completed the product inspection and testing expansion for baby diapers, wipes and female hygiene products." The relevant person in charge of Tianfang standard said that in recent years, the textile industry, especially new materials and new technologies in the field of industrial use have been constantly emerging. With the promotion of the state and industry associations, enterprises' scientific and technological innovation has emerged in an endless stream. The detection ability of Tianfang standard is just in line with the scientific and technological certification and standard certification of industrial enterprises. In the future, it will gradually expand its business scope in the textile industry.

Tianfang Biao has a number of brand customers with industry influence, such as Anta, Li Ning, Aimu, anlifang, Hengyuanxiang, huagol, natong medical, Meirun medical, and other e-commerce platform customers such as tmall, shuoyin and Jingdong. Since the public bidding of national supervision and random inspection of product quality, Tianfang has won the bid for 11 times in 4 consecutive years, and the sampling inspection work of national supervision and random inspection of textile industry product quality of State Administration of market supervision and administration has been carried out.

Tianfangbiao's performance has been fluctuating in recent three years. According to the prospectus, from 2019 to 2021, the operating revenue of Tianfang Biao is 117 million yuan, 170 million yuan and 156 million yuan respectively, and the net profit attributable to the parent company is 218.042 million yuan, 56.7434 million yuan and 36.9524 million yuan respectively. Among them, the revenue from consumer goods testing services accounted for the highest proportion of the main business income, accounting for 99.90%, 69.66% and 93.09% respectively from 2019 to 2021.

As a national high-tech enterprise, tianfangbiao attaches great importance to technology research and innovation. From 2019 to 2021, the proportion of R & D investment in business revenue is 5.33%, 5.29% and 6.17% respectively. Of the 130 million yuan to be raised in the IPO of Beijing stock exchange, part of which will be used for the construction of R & D center. It is worth mentioning that in March this year, Tianfang standard was "diverted" from the gem to the Beijing stock exchange, and it took seven months for the company to be listed on the Beijing stock exchange.

In addition, China's testing industry started late but developed rapidly. With the enhancement of product quality and safety awareness and stricter industry supervision, some institutions with weak competitiveness will gradually withdraw from the market, and the industry concentration will gradually increase.

As the third-party testing institutions are more independent and impartial (the market participants in the testing industry are mainly divided into government testing institutions, enterprise internal testing laboratories and independent third-party testing institutions), the proportion of third-party testing in the global testing market has increased from 40% in 2020 to 45% in 2021, reflecting the continuous improvement of market acceptance.

Under the grand background of the full opening of China's modernization power construction, in the great transformation of the industry from a big textile country to a textile power, China's textile industry presents rapid high-quality development, and promotes the vigorous development of textile testing. As a leading enterprise in the field of textile and garment testing, the successful listing of Tianfang standard is of great strategic significance to the company and the industry. In view of the current situation that China's testing institutions are scattered and the market concentration is low, especially in the textile testing industry, there are few leading enterprises. As an important part of the industrial chain, textile and clothing testing industry has obvious growth space. In the future, the textile testing industry will take the industry as the axis, with the help of capital, effectively gather and integrate all kinds of innovation elements, and usher in the golden age of industrial capitalization.