Venture(US:VEMLY) Sou Hu Cai Jing·2025-12-26 10:49Core Viewpoint - Wuhu Jiahong New Materials Co., Ltd. (Jiahong New Materials) has submitted its prospectus for an IPO on the Beijing Stock Exchange after withdrawing its application for the ChiNext board in December 2024, following a production safety incident in October 2024 that resulted in one fatality [2][3]. Company Overview - Jiahong New Materials specializes in the design, research and development, production, and sales of thermal management products and optical communication products, leveraging advanced polymer material technology [2]. - The company's products are widely used in various industrial sectors, including oil and gas, chemicals, power, marine vessels, semiconductors, as well as in commercial and residential applications such as rail transportation and new energy vehicles [2]. Product and Market Position - The core products include electric heating belts, temperature controllers, and optical communication products, with electric heating belts being the primary revenue source, accounting for over 60% of main business revenue during the reporting period [3]. - Jiahong New Materials holds the top market share in electric heating belts among domestic competitors from 2022 to 2024, as certified by the China Electrical Equipment Industry Association [3]. Financial Performance - The company's revenue for the reporting period (2022 to Q3 2025) was as follows: 355 million yuan, 348 million yuan, 401 million yuan, and 292 million yuan; net profits were 76.98 million yuan, 72.18 million yuan, 66.89 million yuan, and 44.51 million yuan [3]. - The major shareholder, Xu Chunan, controls 73.96% of the shares, with his mother, Wang Jianjun, holding 7.92%, resulting in a combined control of 81.88%, which may influence company decision-making [3]. IPO Details - Jiahong New Materials plans to publicly issue up to 12.6258 million shares and aims to raise 425 million yuan, with funds allocated to three main projects: 319 million yuan for the second phase of the smart factory project, 46.05 million yuan for the R&D center, and 59.86 million yuan for the overseas marketing system and brand promotion [3][4]. Strategic Initiatives - The second phase of the smart factory project is expected to enhance competitiveness in the thermal management sector and strengthen industry leadership [4]. - The R&D center will support technological innovation, while the marketing system will help expand market influence and advance global market positioning [4].