CNA

TAIPEI–China Zenith Chemical Group Ltd., a Chinese petrochemical firm, has submitted an application to the Taiwan Stock Exchange (TWSE) for listing Taiwan depositary receipts (TDRs) on the main board, the stock exchange said yesterday. The TWSE said China Zenith, which has been listed in Hong Kong since May 2001, is planning to issue 120 million TDRs, each of which will represent 10 common shares of the company.

According to the stock exchange, the Chinese company, which operates four production plants in Mudanjiang, in the northeastern Heilongjiang Province of China, is a manufacturer of polyvinyl chloride (PVC) and vinyl acetate (VA), and is also involved in power and steam generation.

China Zenith’s operating margin is the highest in among Chinese PVC listed companies and its gross margin is the second-highest there, the TWSE said.

The TWSE said the company has built calcium carbide production facilities that are expected to begin operations in the fourth quarter of this year, and added that the production is expected to provide a stable raw material supply for the company’s PVC manufacturing.

The funds to be raised from the TDR listing will be used to finance the calcium carbide production and are expected to lower the company’s financial burden, according to China Zenith’s prospectus.

The company posted NT$1.02 billion in net profit during the period of July 2009-June 2010, compared with NT$802.07 million a year earlier.