Venture(US:VEMLY) 智通财经网·2025-06-23 23:09Core Viewpoint - Zhejiang Xinxing Tool Co., Ltd. has initiated its IPO on the Shenzhen Stock Exchange's ChiNext board, aiming to raise 560 million yuan to expand its production capacity in the precision CNC tool sector [1][2]. Company Overview - Xinxing Tool is a leading manufacturer of hole processing tools in China, focusing on the research, production, and sales of drilling tools since its establishment [1]. - The company's products are widely used in various industries, including steel structure engineering, rail transportation, shipbuilding, energy equipment, mechanical manufacturing, and petroleum engineering [1]. - Major clients include China National Railway, China Nuclear Construction, Bosch, and Pan-Asian, with applications in notable projects like the Qinshan Nuclear Power Plant and the Shanghai Maglev Train [1]. Market Demand and Production Capacity - The shift in downstream user production concepts from relying on cheap labor to improving processing methods has led to increased demand for high-performance tools [1]. - The company's production capacity utilization rate is currently at 96.02%, with a sales-to-production ratio of 101.47% [1]. Fundraising and Investment Projects - The funds raised will primarily be used for the construction of a digital factory for precision CNC tool fixtures, with a total investment of 560 million yuan [2]. - The project aims to alleviate the production bottleneck in CNC tools and meet the rapidly growing market demand [2]. - Upon completion, the project is expected to add an annual capacity of 5 million threaded tools, 1 million interchangeable tool heads, 450,000 solid carbide drill bits, and 150,000 fixtures, generating an estimated annual revenue of approximately 51 million yuan and a net profit of about 10.89 million yuan [2]. Financial Performance - The company reported revenues of approximately 391 million yuan, 425 million yuan, and 467 million yuan for the years 2022, 2023, and 2024, respectively [2]. - Net profits for the same years were approximately 172 million yuan, 177 million yuan, and 185 million yuan [2]. Financial Projections - Total assets are projected to reach approximately 1.33 billion yuan by the end of 2024, with equity attributable to shareholders expected to be around 1.15 billion yuan [3]. - The company's revenue is anticipated to grow to approximately 467 million yuan in 2024, with a net profit of about 185 million yuan [3]. - The basic earnings per share are projected to be 2.47 yuan for 2024, reflecting a steady increase from previous years [3].