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]