Core Viewpoint - The company, Zuxing New Materials, has successfully broken the foreign monopoly in the aluminum pigment sector and is poised for growth in high-value industries such as new energy and semiconductors through its upcoming IPO and innovative technologies [1][6]. Group 1: Company Growth and Financial Performance - Zuxing New Materials has achieved a revenue growth of 265% over the past decade, with projected revenues reaching 788 million yuan by 2025 [2][3]. - The company has increased its domestic market share to over 11%, establishing stable partnerships with global coating giants [1][3]. - The company’s total assets have grown from 350 million yuan to 966 million yuan, and net assets have increased from 275 million yuan to 807 million yuan during the same period [2]. Group 2: Technological Innovation and Market Position - Zuxing New Materials has developed seven core technologies in aluminum pigment production, establishing a strong technological moat [4][5]. - The company has successfully replaced foreign products in the high-performance aluminum pigment market, becoming a benchmark for domestic alternatives [4][5]. - Zuxing New Materials has been recognized as a key player in the new energy vehicle supply chain, supplying major automotive companies like BYD and Seres [1][5]. Group 3: IPO and Future Investments - The company plans to raise 208 million yuan through its IPO, focusing on high-end projects such as high-purity micro-fine spherical aluminum powder [6][7]. - The investment will enhance the company’s capabilities in high-performance aluminum pigments and improve product quality through technological upgrades [7]. - The market for micro-fine aluminum powder is expected to reach 3.789 billion yuan by 2030, indicating significant growth potential for the company [7]. Group 4: Strategic Partnerships and Market Expansion - Zuxing New Materials has established long-term collaborations with international coating companies, enhancing its competitive edge [3][4]. - The company is positioned to benefit from the growing demand in sectors like photovoltaics and aerospace, further solidifying its market presence [6][8]. - The upcoming listing on the Beijing Stock Exchange is expected to optimize the company's governance structure and enhance its brand influence [8].

Core Viewpoint - Changsha Zuxing New Materials Co., Ltd. has successfully passed the initial public offering (IPO) application review by the Beijing Stock Exchange, marking it as another national-level specialized and innovative "little giant" enterprise approved for listing [1] Company Overview - Zuxing New Materials is a leading company in the domestic aluminum pigment industry, focusing on the research, production, and sales of fine spherical aluminum powder and aluminum pigments [1] - The company's products are widely used in coatings, inks, plastics, and cover high-end manufacturing sectors such as automotive, 3C electronics, household appliances, and aerospace [1] - Zuxing New Materials has developed seven core technologies, successfully breaking the long-standing foreign monopoly in the mid-to-high-end aluminum pigment sector, and has become an internationally recognized aluminum pigment manufacturer [1] Technological Innovation - The company has participated in the formulation of all five industry standards for aluminum pigments used in coatings, with Zuxing acting as the primary drafting unit for three of these standards [1] - As of now, Zuxing New Materials holds 48 invention patents, 41 utility model patents, and has 27 patents pending, establishing significant technological barriers and industry influence [1] Strategic Development - The success of Zuxing New Materials' IPO is a practical implementation of Western Securities' strategy to enhance financial services and support the growth of regional stocks [2] - The company aims to align closely with national strategies and the needs of the real economy, focusing on enhancing financial service efficiency and directing resources to key areas supported by the state [2] - Zuxing New Materials is committed to fostering new productive forces and contributing to the high-quality development of technology-driven enterprises, thereby supporting the modernization of China [2]

Core Viewpoint - The company, Changsha Zuxing New Materials Co., Ltd., is transforming the high-end aluminum pigment market in China, which has long relied on imports, through strong R&D capabilities and technological innovations [1][4]. Group 1: Technological Breakthroughs - Since its establishment in 1999, the company has developed high-performance aluminum pigments, breaking the market monopoly held by foreign companies [2]. - The company has mastered seven core technologies, including the preparation of fine spherical aluminum powder and resin coating, creating a complete technological chain from raw materials to finished products [2]. - The production of high-quality fine spherical aluminum powder, with a purity of ≥99.85% and a fine powder rate (D50 less than 7.5 microns) of over 65%, provides a stable raw material foundation for high-performance aluminum pigments [2]. Group 2: Product Development and Market Expansion - In 2020, the company developed aluminum pigments for water-based inks, overcoming technical challenges and achieving international advanced levels, thus breaking foreign monopolies in this field [2]. - The company's products have reached international standards in high-end applications such as automotive OEM paints and 3C electronic coatings, with performance metrics comparable to leading international brands [3]. - The company has successfully entered the supply chains of major international paint companies, including Nippon Paint, PPG, and BASF, and established solid partnerships with domestic firms [3]. Group 3: R&D Investment and Industry Recognition - The company has consistently invested in R&D, with expenses projected at 15.82 million yuan, 17.04 million yuan, and 16.28 million yuan from 2022 to 2024, and a research personnel ratio of 14.68% [3]. - As of August 2025, the company holds 86 authorized patents, including 46 invention patents, and has participated in the formulation of five industry standards for aluminum pigments [3].

IPO Review and Registration Progress - Three companies were reviewed for IPO, with two approvals and one deferral. Yongda Co. faced a deferral, while Meidele and Haifiman received approvals [2][3] - Yongda Co. reported a revenue of 361 million yuan for the first three quarters of 2025, a year-on-year decline of 25.16%, and a net profit of 70 million yuan, down 3.34% [2] - Meidele's revenue from products used in the new energy battery sector accounted for about 60% of its main business income, with a high customer concentration [2] - Haifiman specializes in high-end audio products, facing inquiries regarding its technological advancements and acquisition rationality [3] Upcoming IPOs - Three companies are set to present for IPO this week: Zuxing New Materials, Mirui Technology, and Jintai Co., all targeting the Beijing Stock Exchange [4] - Zuxing New Materials has previously attempted IPOs in 2016 and 2020 but withdrew applications. Its revenue for 2022 to 2024 was 629 million, 690 million, and 707 million yuan, with net profits showing fluctuations [4][5] - Mirui Technology's revenue for the first three quarters of 2025 was 549 million yuan, down 0.95%, with a net profit of 51 million yuan, down 12.93% [6] New Stock Listings - Two new stocks were listed last week: Hai'an Group and Nante Technology, with Nante's first-day increase of 183.03% [13][14] - This week, Jingchuang Electric is scheduled to list, with an issue price of 12.1 yuan per share. For the first three quarters of 2025, it reported a revenue of 403 million yuan, up 9.48% [13] Recent IPO Approvals and Terminations - Two IPO registrations were approved: Zhixin Co. and Qiangyi Co. [10] - Zhixin Co. plans to raise 1.329 billion yuan for production line expansion and working capital, while Qiangyi Co. focuses on semiconductor testing hardware [11] - Two IPO applications were terminated due to voluntary withdrawals, including Mingshan Environmental Energy [12] Upcoming New Stock Subscriptions - Two new stocks are set for subscription this week: Muxi Co. and Angrui Micro, both targeting the Sci-Tech Innovation Board [15] - Muxi Co. aims to raise 3.904 billion yuan for GPU development projects, reporting a revenue of 1.236 billion yuan for the first three quarters of 2025, up 453.52% [15] - Angrui Micro plans to raise 2.067 billion yuan for 5G chip development, with a revenue of 1.335 billion yuan and a net loss of 63 million yuan for the same period [16]

Core Viewpoint - Zuxing New Materials Co., Ltd. has submitted its prospectus for an IPO on the Beijing Stock Exchange, aiming to raise 258 million yuan for various projects, despite concerns about the necessity of the funds given its low debt ratio and increasing cash reserves [1][3]. Financial Performance - The company reported revenues of 629 million yuan, 690 million yuan, and 707 million yuan from 2022 to 2024, with net profits of 51.78 million yuan, 86.74 million yuan, and 58.72 million yuan, indicating a decline in net profit by over 30% in 2024 despite revenue growth [3]. - Operating cash flow has been consistently negative during the reporting period, with net cash flows of -9.78 million yuan, -52.47 million yuan, and -0.86 million yuan, attributed to differences in settlement cycles with major clients and suppliers, as well as increased inventory and accounts receivable [2][3]. Research and Development - The company has a low focus on R&D, with R&D expenses as a percentage of revenue at 2.51%, 2.47%, and 2.30%, which is below the average of comparable companies [5]. - In contrast, sales expenses have been increasing, with rates of 3.15%, 3.30%, and 3.77%, also exceeding the average of comparable companies [5]. Employee Structure - A significant portion of the workforce has lower educational qualifications, with 87.74% holding a diploma or below, and only 0.17% having a doctoral degree [6]. - The company employs 579 people, with 16.58% in sales, 50.43% in production, and 14.68% in R&D [6]. Pricing Trends - The average selling prices of the company's main products have been declining, with aluminum pigment prices at 53,300 yuan/ton, 52,000 yuan/ton, and 50,100 yuan/ton from 2022 to 2024 [8][10]. - The selling prices of fine spherical aluminum powder also showed a downward trend, priced at 20,700 yuan/ton, 19,600 yuan/ton, and 20,300 yuan/ton during the same period [8][10]. Regulatory Issues - The company has faced regulatory penalties in the past, including a reprimand from the National Equities Exchange and Quotations for failing to properly disclose significant information during its previous IPO attempt [12][13]. - It has also received minor administrative penalties from local health and safety authorities, which, while not significantly impacting operations, have affected the company's reputation [14].