Group 1 - The Ministry of Industry and Information Technology (MIIT) announced the latest list of 100 small and medium-sized enterprise (SME) characteristic industrial clusters for 2025, with six clusters from Jiangsu province recognized [1] - The recognized clusters include: Nanjing's CNC machine tool functional components, Changzhou's industrial collaborative robots, Suzhou's simulation fiber materials, Nantong's offshore wind power equipment, Yancheng's flue gas treatment environmental protection equipment, and Taixing's low-carbon olefin extended functional materials [1] - The recognition process involved preliminary review and recommendation by provincial SME authorities, expert evaluation, and public announcement, with a validity period of three years [1] Group 2 - In 2022, MIIT initiated the recognition of national SME characteristic industrial clusters, selecting a batch of clusters that are prominent in their respective fields and have strong core competitiveness to support high-quality county-level economic development [1] - The recognized clusters are required to focus on leading industries and enhance the supporting capabilities of key links in the industrial chain, with provincial authorities expected to develop long-term plans and special support policies for their regions [1] - MIIT will monitor the development of these clusters and implement dynamic management for those already recognized [1] Group 3 - The first batch of SME characteristic industrial clusters for 2022 was also announced, with 97 clusters passing the review, including those from Jiangsu such as Changshu's electronic fluorine materials and Liyang's power battery industry clusters [2] - The review process for the first batch included similar evaluation and approval steps as the latest batch [2]

Core Insights - The Ministry of Industry and Information Technology has announced the 2025 list of characteristic industrial clusters for small and medium-sized enterprises (SMEs), with 100 clusters recognized, valid for three years [1] - Jiangsu province has six clusters on the list, while Hunan and Hebei lead with seven each, marking the highest number of new entries [1] Summary by Cluster - **Nanjing Lishui CNC Machine Tool Functional Components Cluster**: Comprises 180 enterprises, with a projected total output value of 24.98 billion yuan by the end of 2024. It has established 21 provincial innovation platforms and has made significant contributions to national standards [1] - **Changzhou Wujin Industrial Collaborative Robot Cluster**: Hosts 141 enterprises, producing over 40,000 robots annually, with a total industry scale exceeding 20 billion yuan. It has a strong presence in global markets and significant advantages in robot R&D and manufacturing [2] - **Suzhou Wujiang Simulation Fiber Materials Cluster**: Features a complete industrial chain from fiber R&D to end applications, with a total output value of 27.499 billion yuan in 2024. It includes 73 SMEs and has established itself as a leader in the simulation fiber sector [2] - **Rudong Offshore Wind Power Equipment Cluster**: Recognized as a national leader, it has built 32 wind farms with an installed capacity of 4.83 million kW, accounting for 40% of Jiangsu's offshore wind capacity. The cluster includes 58 enterprises and is projected to reach a total output value of 22.477 billion yuan in 2024 [3] - **Yancheng Tinghu Air Pollution Control Equipment Cluster**: Focuses on a complete industrial chain for air pollution control and environmental monitoring, with over 60 key enterprises. It has established 16 R&D institutions in collaboration with universities [3] - **Taixing Low-Carbon Olefin Extended Functional Materials Cluster**: Comprises 75 SMEs, with a high innovation density reflected in 434 valid invention patents. It has developed significant core competencies in low-carbon olefin processing and functional materials [4] Overall Assessment - The six clusters from Jiangsu align with national standards emphasizing focused industries, distinctive advantages, resource aggregation, and efficient collaboration networks. They are pivotal for regional economic development and the upgrading of SMEs [4] - The Ministry of Industry and Information Technology emphasizes the need for clusters to focus on key industries and improve supply chain capabilities, with plans for ongoing monitoring and dynamic management of recognized clusters [4]

Core Viewpoint - Okada Intelligent (Jiangsu) Co., Ltd. is accelerating its IPO process amid challenges, including a concentrated ownership structure and declining product prices, with a planned fundraising of 985 million yuan [1][2]. Company Overview - Okada Intelligent specializes in core components for CNC machine tools, with major products including tool magazines, spindles, and rotary tables, primarily used in metal cutting CNC machine tools [2]. - The company was established in 2013 and has experienced a long period of shareholding proxy arrangements, only introducing an external shareholder in June 2023 [1][7]. Financial Performance - From 2022 to 2024, Okada Intelligent reported revenues of 767 million yuan, 773 million yuan, and 932 million yuan, with net profits of 119 million yuan, 132 million yuan, and 169 million yuan respectively [2][3]. - The company’s net profit showed a trend of decline followed by recovery, with a notable drop in the average selling price of its main products [2][3]. Market Position - Okada Intelligent holds a market share of approximately 2.78% to 4.38% in the domestic CNC machine tool component industry, ranking just behind the listed company Haoshi Electromechanical [2]. - It is the largest manufacturer of tool magazines in China [2]. Product Pricing and Production Capacity - The average selling price of tool magazines decreased by nearly 8% from 15,900 yuan to 14,600 yuan between 2022 and 2024 [2][3]. - The production capacity for tool magazines increased from 37,200 units to 53,300 units during the same period, with utilization rates fluctuating [3]. R&D Investment - Okada Intelligent's R&D expenditures from 2022 to 2024 were 38.01 million yuan, 36.40 million yuan, and 44.64 million yuan, with R&D expense ratios below industry averages [4][5]. - The company has significantly fewer patents compared to its competitor Haoshi Electromechanical, indicating a gap in technological capabilities [6]. Ownership Structure - The ownership of Okada Intelligent is highly concentrated, with the founders controlling 91.74% of the shares as of now, and they are expected to retain 68.81% post-IPO [7][8]. - The introduction of an external investor, Industrial Mother Machine Industry Fund, involved a performance-based agreement that could trigger buyback options if IPO milestones are not met [8][9].

Core Viewpoint - Okada Intelligent (Jiangsu) Co., Ltd. is seeking to change its listing status on the Shenzhen Stock Exchange to "inquired" and plans to raise approximately 985.28 million yuan through its IPO, focusing on the development, production, and sales of core components for CNC machine tools [1]. Company Overview - Okada Intelligent specializes in the research, production, and sales of core functional components for CNC machine tools, including tool magazines, spindles, and rotary tables, primarily used in metal cutting CNC machine tools [1]. - The company has established itself as the largest tool magazine manufacturer in China, gaining significant recognition and a strong brand image within the industry [1]. Market Position - The estimated market size for CNC machine tool functional components in China for 2024 is projected to be between 21.08 billion yuan and 33.22 billion yuan, with Okada Intelligent's market share expected to be around 2.78% to 4.38% [2]. - Okada Intelligent ranks second in market size among domestic CNC machine tool functional component manufacturers, following Haozhi Electromechanical [2]. Financial Performance - The company reported revenues of approximately 767 million yuan, 773 million yuan, and a projected 932 million yuan for the years 2022, 2023, and 2024, respectively [2]. - Net profits for the same years were approximately 119 million yuan, 132 million yuan, and a projected 169 million yuan [2]. Financial Metrics - Total assets are projected to reach approximately 1.324 billion yuan by the end of 2024, up from 1.136 billion yuan in 2023 and 1.034 billion yuan in 2022 [3]. - The company's equity attributable to shareholders is expected to increase to approximately 785.89 million yuan in 2024 from 615.54 million yuan in 2023 and 292.65 million yuan in 2022 [3]. - The asset-liability ratio is projected to decrease from 64.24% in 2022 to 32.99% in 2024 [3]. Earnings and Returns - Basic earnings per share are projected to be 1.72 yuan for 2024, up from 1.55 yuan in 2023 [4]. - The weighted average return on equity is expected to be 24.08% in 2024, down from 29.28% in 2023 [4]. - Research and development expenses are expected to account for 4.79% of total revenue in 2024, slightly increasing from 4.71% in 2023 [4].

Company Overview - Okada Intelligent (Jiangsu) Co., Ltd. has submitted a prospectus for an initial public offering (IPO) on the Shenzhen Stock Exchange, with Huatai United Securities as the sponsor [1] - The company focuses on the research, production, and sales of core functional components for CNC machine tools, including tool magazines, spindles, and rotary tables, primarily used in metal cutting CNC machine tools [2] Market Position - The market size for CNC machine tool functional components in China is projected to be between 21.08 billion and 33.22 billion yuan in 2024, with Okada Intelligent estimated to hold a market share of approximately 2.78% to 4.38%, ranking just behind Haozhi Electromechanical [2] - Okada Intelligent has become the largest tool magazine manufacturer in China since its establishment in 2013, with its disc and chain tool magazines leading the domestic market share among similar products [8] Financial Performance - Revenue for Okada Intelligent during the reporting period was approximately 767 million yuan, 773 million yuan, and 932 million yuan for 2022, 2023, and 2024 respectively, with a significant increase in 2024 driven by industrial policies [6] - Gross profit margins for the same periods were 30.72%, 31.41%, and 32.70%, while net profits were 119 million yuan, 132 million yuan, and 169 million yuan respectively [6] Product Breakdown - The revenue breakdown for 2024 shows that tool magazines account for 80.96%, spindles for 10.79%, and rotary tables for 7.50% of total revenue [3] - The sales of tool magazines have consistently represented over 80% of the company's revenue, indicating a strong reliance on this product line [2][3] Growth Drivers - The company expects significant growth in 2024 due to favorable national policies supporting the CNC machine tool industry and increased market expansion efforts, particularly with clients like Hyundai Wia and Qiaofeng Intelligent [4] - The improvement in the product structure of tool magazines, particularly the higher-priced chain tool magazines, has contributed to increased sales revenue and market share [4] Fundraising and Investment Plans - The IPO aims to raise approximately 985 million yuan, which will be allocated to expanding production lines for tool magazines, spindles, and rotary tables, as well as enhancing R&D and marketing networks [10][11] - Specific projects include the expansion of the CNC machine tool tool magazine production line and the upgrade of enterprise R&D and information systems [11]