On July 10, Befar (601678.SH, 06745.HK) officially listed on the main board of the Hong Kong Stock Exchange, completing its "A+H" dual listing layout. The issuance price of its H shares was HKD 3.48 per share, opening at HKD 2.74 per share, a decline of 21.26% from the issuance price, and ultimately closing at HKD 2.83 per share, a drop of 18.68%, with a total market value of approximately HKD 13.9 billion. On the same day, the A share price of the company also fell, closing down 5.23% to RMB 5.44 per share, with a total market value of approximately RMB 12.1 billion.

This global offering by Befar totaled 352 million H shares, with the Hong Kong public offering and international offering accounting for 10% and 90%, respectively. The total scale of the global offering was approximately HKD 1.225 billion, making it the largest chemical company IPO in the Hong Kong market as of 2026. The Hong Kong public offering portion was oversubscribed by 227.58 times, while the international offering portion was subscribed 4.26 times.

Founded in 1968 and listed on the Shanghai Stock Exchange in 2010, Befar is a comprehensive chemical group primarily engaged in chlor-alkali chemicals, C3 and C4 chemicals, and wet electronic chemicals, with core products including caustic soda, propylene oxide, MTBE, and electronic-grade hydrofluoric acid.

According to the prospectus citing Frost & Sullivan data, based on 2025 revenue, Befar is the largest producer of trichloroethylene, tetrachloroethylene, and chloroprene in China, as well as the second-largest producer of propylene oxide and MTBE, with market shares of approximately 36%, 41.4%, 23.8%, 9.5%, and 3.8%, respectively. It is also one of the few domestic producers capable of manufacturing electronic-grade hydrofluoric acid for advanced semiconductor processes.

In the field of wet electronic chemicals, the company entered this sector in 2018 with an annual production capacity of 6,000 tons of electronic-grade hydrofluoric acid and achieved SEMI G5 level standards in 2019, becoming one of the few companies in China capable of stable mass production of G5 level electronic-grade hydrofluoric acid. By 2025, the company's production of electronic-grade hydrofluoric acid reached 6,405 tons, achieving sales revenue of RMB 63.3958 million, with a capacity utilization rate of 106.7%, realizing full production and sales for the first time.

Based on the sales revenue of domestic G5 level electronic-grade hydrofluoric acid in 2025, the company ranks fifth in the country with a market share of approximately 9.6%. In addition, the company is simultaneously promoting the research and industrialization layout of wet electronic chemicals such as electronic-grade hydrochloric acid, sulfuric acid, hydrogen peroxide, and ammonia water, with G5 level electronic-grade hydrofluoric acid as the core, aiming to transform from single product supply to a combination supply of wet electronic chemicals.

Financial data shows that from 2023 to 2025, Befar's revenue is projected to be RMB 7.306 billion, RMB 10.228 billion, and RMB 14.836 billion, respectively; net profits are projected to be RMB 399 million, RMB 217 million, and RMB 235 million, respectively; and gross profit margins are projected to be 16.7%, 6.4%, and 9.8%, respectively Befar expects that in the first half of 2026, the net profit attributable to the parent company will be 344 million yuan, a year-on-year increase of 208.25%; the net profit after deducting non-recurring items will be 286 million yuan, achieving a turnaround from a loss of 13.2752 million yuan in the same period last year. The company stated that in the first half of the year, all its facilities maintained stable operations, and the production of major products remained stable. At the same time, affected by international political factors and geopolitical conflicts, the prices of the global chemical raw material market have risen, and the market conditions for some of the company's products have improved. The prices of major products such as propylene oxide, chloropropene, and propylene have increased significantly compared to the same period last year, resulting in increased gross profit.

According to the fundraising arrangement, Befar plans to use approximately 40% of the net proceeds for the construction of the integrated project of source network load storage in the Beihai Economic Development Zone of Binzhou, which is expected to achieve a green electricity usage rate of over 60% and an annual self-generated electricity of 424 million kilowatt-hours; about 30% will be used to enhance R&D capabilities, focusing on high-end new materials and fine chemicals; about 10% will be used to build a new production facility for electronic chemicals with an annual output of 17,000 tons in Binzhou Yangxin; about 10% will be used to expand the overseas sales and service network; and the remaining approximately 10% will be used as general working capital.

Guotai Junan Securities and Haitong Securities believe that with the exit of high-cost production capacity overseas and stricter domestic industry controls, after the optimization of the industry structure, the cost advantages of Befar's co-production process are expected to be gradually released during the upward cycle