Core Viewpoint - Haiwei Electronics specializes in capacitor film products, which are essential components of film capacitors known for their excellent voltage resistance, high-frequency stability, and long lifespan. The company holds a 10.9% market share in China's capacitor base film market as of 2024 [4]. Industry Overview - The capacitor base film market in China is projected to grow from 46,200 tons in 2019 to 113,400 tons by 2024, representing a compound annual growth rate (CAGR) of 19.7%. It is expected to reach 224,100 tons by 2029, with a CAGR of 14.1% from 2025 to 2029 [4]. Company Capabilities - Haiwei Electronics is the only company with the capability to design and develop its own capacitor base film production lines. As of August 21, 2025, the company has five production lines that are self-designed, developed, and assembled, which helps overcome industry bottlenecks and supports capacity enhancement and cost control [4][5]. Product Specifications - The production lines designed by Haiwei Electronics have a delivery period of approximately eight months, significantly shorter than the industry average of three to five years for imported production lines. The investment cost for new production lines is estimated at around RMB 120 million, which is below the industry average in China [5]. Financial Performance - The revenue for Haiwei Electronics for the fiscal years 2022, 2023, 2024, and the five months ending May 31, 2025, were approximately RMB 327 million, RMB 330 million, RMB 422 million, and RMB 157 million, respectively. The net profit and total comprehensive income for the same periods were approximately RMB 102 million, RMB 69.8 million, RMB 86.4 million, and RMB 31.4 million [5][7].

Company Overview - Hebei Haiwei Electronic New Materials Technology Co., Ltd. submitted its prospectus to the Hong Kong Stock Exchange on August 27, indicating it is the second-largest capacitor film manufacturer in China based on capacitor base film sales in 2024 [1] - The company's net profits for 2022, 2023, 2024, and the first five months of 2025 were 102 million, 70 million, 86 million, and 31 million yuan respectively [1][2] - The company's revenue for the same periods was 327 million, 330 million, 422 million, and 157 million yuan respectively [1][2] Financial Performance - The net profit increased from 70 million yuan in 2023 to 86 million yuan in 2024, primarily due to increased sales of capacitor base films [2] - The net profit decreased from 33 million yuan in the first five months of 2024 to 31 million yuan in the first five months of 2025, mainly due to a decline in sales of metallized films [2] - The gross profit margins for 2022, 2023, 2024, and the first five months of 2025 were 44.9%, 31.2%, 29.7%, and 35.5% respectively [2] Market Position - In 2024, the company held a 10.9% market share in the domestic capacitor base film market [1] - Capacitor base films accounted for the largest portion of the company's revenue, representing 91.9%, 71.8%, 72.8%, and 78.5% of total revenue for 2022, 2023, 2024, and the first five months of 2025 respectively [2] - The company's top five customers generated revenues of approximately 119 million, 115 million, 158 million, and 157 million yuan, accounting for 36.4%, 34.9%, 37.6%, and 42.1% of total revenue respectively [2] Industry Insights - The capacitor base film market in China is projected to grow at a compound annual growth rate (CAGR) of 19.7%, increasing from 46,200 tons in 2019 to 113,400 tons in 2024, and expected to reach 224,100 tons by 2029 with a CAGR of 14.1% from 2025 to 2029 [3]