Core Viewpoint - Jia De Li Electronic Materials Co., Ltd. has submitted an IPO application to raise 725 million yuan, with significant concerns regarding its financial metrics and operational practices, despite its high profitability and industry position [1][3][21] Financial Metrics Concerns - Jia De Li's revenue and net profit from 2022 to 2024 showed fluctuations, with revenues of 550 million yuan, 528 million yuan, and 734 million yuan, and net profits of 192 million yuan, 141 million yuan, and 238 million yuan respectively, indicating a 38.95% revenue growth and a 68.99% net profit increase in 2024 [4] - The company's gross profit margins from 2022 to 2024 were 49.29%, 41.91%, and 46.29%, significantly higher than the industry average of 41.31%, 33.22%, and 32.88% [6][7] - Research and development expenses were only 3.25% of revenue in 2024, lower than the industry average of 3.81%, raising questions about the sustainability of its high profit margins [6][7] Capacity Utilization Issues - Jia De Li reported capacity utilization rates of 107.74%, 99.52%, and 102.89% from 2022 to 2024, but these figures were calculated using a non-standard method that inflated the actual utilization rate [8][10] - When calculated using the standard formula of actual production over capacity, the utilization rates were significantly lower at 86.42%, 79.64%, and 79.95% [10] Debt Structure and Liquidity Concerns - Short-term debt surged from 8.68 million yuan in 2022 to 50.50 million yuan in 2024, indicating a nearly fivefold increase, with total debt reaching 62.51 million yuan in 2025 [11][12] - The rapid increase in short-term debt raises concerns about the company's cash flow and financial stability, especially given its high net profit margins [11] Supply Chain Risks - Jia De Li relies heavily on a single overseas supplier, Borouge, for over 90% of its polypropylene resin, posing significant supply chain risks [13][14] Ownership and Control Issues - The company has a highly concentrated ownership structure, with the actual controllers holding 95.89% of the shares, and a recent introduction of external investors included a buyback agreement contingent on the company's IPO success [15][17] Disclosure and Internal Control Concerns - The IPO prospectus contained errors and raised questions about the quality of disclosures, alongside past issues of providing guarantees to related parties, indicating weaknesses in internal controls [19][20] Conclusion - Despite presenting a strong image of profitability and market position, Jia De Li's financial practices, reliance on single suppliers, and ownership structure present significant risks that could impact its IPO prospects and investor confidence [21]

Core Viewpoint - Hebei Haiwei Electronic New Materials Technology Co., Ltd. has refiled its application for listing on the Hong Kong Stock Exchange after its initial application expired, indicating its ongoing ambition to expand in the capacitor film manufacturing industry [1][2]. Company Overview - Haiwei Electronic is a manufacturer of capacitor films, producing key components such as capacitor base films and metallized films, which are widely used in various sectors including new energy vehicles and industrial equipment [1][3]. - The company has been recognized as the second-largest capacitor film manufacturer in China based on projected sales for 2024 [1][4]. Financial Performance - Revenue from 2022 to 2024 shows a steady increase from 327 million RMB to 422 million RMB, while net profit has fluctuated, decreasing from 102 million RMB in 2022 to 86.4 million RMB in 2024 [1][5]. - In the first five months of 2025, revenue declined by approximately 3.2% to 157 million RMB, and net profit decreased by about 4.56% to 31.4 million RMB [1][6]. Market Dynamics - The capacitor film market in China is projected to grow significantly, with the market size increasing from 1.2 billion RMB in 2019 to 3.6 billion RMB in 2024, reflecting a compound annual growth rate (CAGR) of 24.2% [8][11]. - Haiwei Electronic holds a market share of 14.2% in the capacitor base film market, ranking second among the top five players, which collectively hold 61.6% of the market [11][12]. Production Capacity and Expansion Plans - The company plans to double its production capacity by adding four new capacitor base film production lines by 2027, which will significantly enhance its market presence [12][13]. - Haiwei Electronic's production capacity utilization has been high, reaching 98.8% in 2024, indicating strong demand for its products [13][14]. New Business Ventures - The company is expanding into the composite copper foil market, which is expected to grow from 11.09 billion RMB in 2025 to 49.47 billion RMB by 2029, with a CAGR of 45.3% [15]. - This new venture is anticipated to become a significant growth driver for Haiwei Electronic, potentially enhancing its valuation [15].

Core Viewpoint - Hebei Haiwei Electronic New Materials Technology Co., Ltd. has re-submitted its listing application to the Hong Kong Stock Exchange after a six-month interval, aiming for a main board listing [1][2] Company Overview - Haiwei Electronic is a capacitor film manufacturer, producing capacitor base films and metallized films, which are key components of film capacitors widely used in various sectors including new energy vehicles and industrial equipment [2][3] - The company is recognized as the second-largest capacitor film manufacturer in China based on projected sales for 2024 [2][6] Financial Performance - Revenue from 2022 to 2024 shows a steady increase: 327 million, 330 million, and 422 million RMB respectively, while net profit fluctuated: 102 million, 69.8 million, and 86.4 million RMB [2][6] - In the first five months of 2025, revenue declined by approximately 3.2% to 157 million RMB, and net profit decreased by about 4.56% to 31.4 million RMB [2][8] Profitability Analysis - The fluctuation in net profit is attributed to the decline in gross margin, which was 44.9%, 31.2%, and 29.7% from 2022 to 2024 [7][9] - The drop in gross margin in 2023 was due to reduced market prices for capacitor base films, while the increase in metal prices affected the metallized films' costs in 2024 [9] Market Position and Competition - The capacitor base film market in China is projected to grow from 1.2 billion to 3.6 billion RMB from 2019 to 2024, with a compound annual growth rate (CAGR) of 24.2% [10][13] - Haiwei Electronic holds a market share of 14.2% in 2024, ranking second among the top five players who collectively hold 61.6% of the market [13][14] Expansion Plans - The company plans to launch four new capacitor base film production lines between 2026 and 2027, increasing total capacity by 16,000 tons, effectively doubling its production capacity [14][15] - Haiwei Electronic has also extended its business into the composite copper foil market, which is expected to grow significantly, providing a potential new growth avenue [16][17]