Recently, China Zhongji Investment completed the targeted investment of Hebei Sitong New Metal Material Co., Ltd (STNM，300428.SZ) for listed enterprises in Hebei Province. STNM was established in 1998 and is the largest manufacturer of intermediate alloys and grain refining products in China. The company, located in Baoding, Hebei Province, listed on the Shenzhen Stock Exchange's Growth Enterprise Market on March 19, 2015.

STNM Factory Area

The company bought Tianjin Lizhong Group Co., Ltd. by issuing shares in 2018. Established in 1995, Tianjin Lizhong Group was initially capitalized by Hebei Lizhong Non-ferrous Metal Group (originated in 1984). It was listed on the main board of the Singapore Exchange in 2005. Lizhong Group is one of the largest aluminum alloy wheel manufacturing enterprises in China.

The acquisition of STNM after the wheel has further expanded the market share, consolidating its strong position in China's domestic car hub market.

STNM will be raised mainly for industrial 4.0 intelligent factory transformation, as well as aluminum alloy wheels, high-strength aluminum suspension parts expansion projects, etc.

Yang Xiaoying, managing director of China Zhongji Investment, said that the high recognition of the use and future prospects of the fixed increase in funds for STNM was the root cause of our participation in the fixed increase, and the following factors are considered:

1. Leading position in the industry.

STNM is one of the largest manufacturers of aluminium alloy wheels in China. Both domestic and foreign OEM markets have a large market share. Customers are more stable and do not rely heavily on a few customers, the development prospects are very good.

2. Have a clear market strategy layout.

Enterprises show the trend of globalization in market development and customer development. In the context of the shift of the global automobile industry chain to developing countries and regions, we will seize the opportunity to realize the business market layout for the middle- and high-end automobile factories at home, complete the business market layout for North America, Europe and Asia-Pacific, and eventually form the strategic market layout for foreign sales accounting for about 45% of the total.

3. Quality customer resource base.

At present, enterprises have joined with many well-known auto manufacturers at home and abroad to supply, high-quality and rich customer groups, which is conducive to improve profitability and risk resistance, and enhance the development potential of enterprises.

4. Core Technology Advantages.

The company has been focusing on the breakthrough of core technology in the automobile aluminum alloy wheel industry, attaching great importance to independent R & D and technological innovation.

STNM has the leading R & D center and talent team in the industry

Yang Xiaoying said that China Zhongji Investment's fixed increase of STNM has won a higher "safety margin." Against the backdrop of good expectations for China's economy and capital market development, the increase is expected to bring investors safe and stable returns.

Wen Yuanhua, president of China Zhongji Investment, introduced that in the future, China Zhongji Investment will also open up more first-class semi-market businesses, such as fixed increase, mergers and acquisitions, asset restructuring, etc. STNM is one of the typical cases in which China Zhongji Investment will help promote the upgrading of industries and help the rapid development of local private enterprises. China Zhongji Investment hopes to cooperate with all sectors of society and do things that benefit the country, benefit the people and win-win.