Core Viewpoint - Guangdong Suqun New Material Co., Ltd. is preparing for an initial public offering (IPO) on the Shenzhen Stock Exchange, focusing on the issuance of shares to specific investors in 2025, with the aim of raising funds for business expansion and development in the electronic and electrical functional materials sector [1][2]. Group 1: Company Overview - The company specializes in thermal management materials, magnetic materials, and nano-protective materials, primarily serving the consumer electronics market, including smartphones and laptops, while also expanding into new energy vehicles and servers [2][3]. - Established on June 2, 2011, the company has a registered capital of 80.75 million RMB and is headquartered in Dongguan, Guangdong Province [1][2]. Group 2: Financial Performance - The total assets of the company as of the latest reporting period are approximately 1.56 billion RMB, with total liabilities of about 502.98 million RMB, resulting in shareholders' equity of approximately 1.06 billion RMB [3]. - For the first quarter of 2025, the company reported an operating income of approximately 183.33 million RMB, with a net profit of around 16.42 million RMB [3][4]. - The company’s gross profit margin has shown slight fluctuations, with a comprehensive gross margin of 25.82% in 2022, decreasing to 24.81% in 2024 [6]. Group 3: Market Position and Clientele - The company has established itself as a qualified supplier for major clients including Xiaomi, Vivo, Samsung, Google, and BYD, indicating a strong market presence and recognition in the industry [2][3]. - The revenue from artificial graphite thermal management materials accounted for approximately 81.72% of total revenue in the reporting period, highlighting the company's reliance on this product line [6]. Group 4: Risks and Challenges - The company faces risks related to market competition, customer concentration, and fluctuations in raw material prices, which could impact its operational performance [5][6]. - The reliance on a few major clients for a significant portion of revenue poses a risk if any of these clients experience financial difficulties or reduce orders [5][6]. - The company is also exposed to international trade risks, particularly due to potential trade barriers and tariffs that could affect its export activities [7][8]. Group 5: Fundraising and Use of Proceeds - The company plans to raise approximately 465.91 million RMB through this IPO, which will be allocated to various projects aimed at enhancing production capacity and expanding market reach [19][20]. - The issuance will be conducted through a private placement to no more than 35 specific investors, including qualified institutional investors [14][15].