Core Viewpoint - Jiangxi Hongban Technology Co., Ltd. has successfully passed the IPO review by the Shanghai Stock Exchange, focusing on the research, production, and sales of printed circuit boards (PCBs) with a strong market position in high-end applications [1][2]. Group 1: Company Overview - Hongban Technology specializes in the R&D, production, and sales of printed circuit boards, particularly in the high-precision, high-density, and high-reliability segments [1]. - The company has established a comprehensive product structure and possesses extensive technical R&D and production capabilities, offering diverse product choices and one-stop services to clients [1]. - Its products are widely used in consumer electronics, automotive electronics, high-end displays, and communication electronics, with significant competitive advantages in the consumer and automotive electronics sectors [1]. Group 2: Market Position and Performance - In the mobile HDI mainboard and battery board sectors, Hongban Technology has a substantial market share, supplying 154 million mobile HDI mainboards and 228 million flexible and rigid-flex battery boards to the top ten global smartphone brands in 2024 [2]. - The company's mobile HDI mainboard supply accounts for approximately 13% of the total shipments of the top ten smartphone brands, while its battery board supply represents about 20% [2]. - Hongban Technology ranks 35th in the 2024 China PCB industry comprehensive top 100 enterprises and 58th in the 2024 global top 100 PCB companies according to Prismark [2]. Group 3: Financial Performance - From 2022 to the first half of 2025, Hongban Technology's revenue figures were 2.205 billion, 2.34 billion, 2.702 billion, and 1.71 billion yuan, respectively, with net profits of 120 million, 87.038 million, 194 million, and 233 million yuan [3]. - The company has shown a growth trend in both revenue and profit, establishing a certain market scale and position [3]. - The IPO aims to raise 2.057 billion yuan to invest in a project for producing 1.2 million square meters of high-precision circuit boards annually, enhancing its HDI board production capacity and optimizing its financial structure [3].

Core Viewpoint - Hongban Technology plans to issue no more than 218 million shares on the Shanghai Stock Exchange, raising 2.057 billion yuan for a project to produce 1.2 million square meters of high-precision circuit boards annually. Despite a market share of approximately 13% in HDI boards for the top ten global smartphone brands, the company faces challenges such as performance volatility and increased fixed asset depreciation [1][2][3]. Company Overview - Hongban Technology, originally established in 2005 as Hongban (Jiangxi) Co., has evolved into a significant player in the PCB industry, focusing on HDI boards. The company has a concentrated shareholding structure, with the controlling shareholder holding 95.12% of the shares, raising governance concerns as it approaches the capital market [2]. - In 2024, the company supplied 154 million HDI boards and 228 million flexible and rigid-flex battery boards, capturing 13% and 20% of the respective markets for the top ten smartphone brands [2]. Financial Performance - From 2022 to 2024, the company's revenue increased from 2.205 billion yuan to 2.702 billion yuan, while net profit fluctuated significantly, dropping from 141 million yuan to 105 million yuan, then rebounding to 214 million yuan. The net profit in 2023 decreased by 25.40%, but in 2024, it is expected to grow by 103.87% [3]. - The company has triggered 24 financial risk warning indicators, with accounts receivable rising from 622 million yuan in 2022 to 919 million yuan in 2024, increasing the accounts receivable to revenue ratio from 28.21% to 34.00%, indicating growing collection pressure [3]. Industry Context - The PCB industry is highly competitive, with China's PCB output accounting for 56% of the global total in 2024. The global PCB market is expected to grow at a compound annual growth rate of 5.2% from 2024 to 2029, intensifying competition [4]. - Hongban Technology holds only 0.49% of the global PCB market share, ranking 58th in the industry. The low concentration in the Chinese PCB market, where the top ten manufacturers hold only 54.85% of the market, leads to fierce competition among numerous small and medium-sized enterprises [4]. Business Structure and Risks - Approximately 60% of the company's revenue comes from the consumer electronics sector, making it highly dependent on the market demand for smartphones and other consumer electronics. This dependency poses risks, especially in the context of a slowing smartphone market [4]. - The planned investment of 2.057 billion yuan for the new production project is expected to increase HDI production capacity by about 70%. However, the project will also significantly increase annual depreciation by 122 million yuan, which is 57% of the projected net profit for 2024, potentially impacting profitability [5]. Research and Development - The company's R&D expenditure has consistently been below the 5% industry benchmark, with 2024 R&D expenses at 125 million yuan, less than one-third of the industry average. Insufficient investment in technology may hinder the company's competitiveness in the rapidly evolving PCB sector [5][6].