Core Viewpoint - Changsha Zuxing New Materials Co., Ltd. is making its third attempt to go public on the A-share market, facing scrutiny over performance fluctuations, sudden dividends, and overlapping identities of customers and suppliers [1][2][3] Financial Performance - In 2024, Zuxing New Materials experienced a 2.53% increase in revenue but a 32.3% decrease in net profit, indicating a phenomenon of revenue growth without profit increase [4] - The company's net profit for the years 2022, 2023, and 2024 was reported as 51.78 million, 86.74 million, and 58.72 million respectively, with a significant drop in 2024 [3][4] - Operating cash flow has been consistently negative, totaling -63.11 million over three years, raising concerns about the company's operational sustainability [4] IPO Details - The company plans to raise no more than 258 million yuan through the IPO, with 40 million yuan allocated for working capital [6] - Prior to the IPO, Zuxing New Materials distributed dividends totaling 19.4 million yuan in 2024 and 2025 [5] Supplier and Customer Dynamics - Zuxing New Materials has a high concentration of suppliers, with the top five suppliers accounting for over 85% of total purchases from 2022 to 2024 [7] - There is a notable overlap between suppliers and customers, particularly with Jinma Aluminum, which has been both a major supplier and customer [8] - The company faces questions from the exchange regarding the rationale behind these overlapping relationships and the legitimacy of transactions with newly established customers [8] Regulatory Concerns - The company has faced multiple penalties related to safety and production issues, highlighting potential risks associated with its operations in the hazardous materials sector [8]

Core Viewpoint - The micro-fine spherical aluminum powder industry is experiencing significant growth due to advancements in production technology and increasing applications across various sectors, including military and civilian markets [5][7][11]. Industry Overview - Micro-fine spherical aluminum powder is characterized by high precision, small span, and clear particle size classification, with high active aluminum content and low oxygen content [2]. - The production of aluminum powder has a history of over 100 years, with air atomization methods being replaced by nitrogen atomization due to safety concerns [6]. Industry Development History - The introduction of air atomization technology from the Soviet Union in the 1950s marked the beginning of aluminum powder production in China, which was later improved by the development of nitrogen atomization technology in the 1990s [6]. - Breakthroughs in micro-fine spherical aluminum powder production technology occurred in 2008, significantly increasing the yield of fine powders with a particle size of less than 10μm [6]. Market Scale and Trends - The production capacity and market scale of micro-fine spherical aluminum powder have been increasing year by year, with the market share of Xuyang New Materials remaining the highest in both domestic and international markets from 2021 to 2023 [7]. - The industry is trending towards micro-fine and spherical products, with increasing demands for product quality and performance from downstream applications [8][10]. Production Technology and Innovations - Xuyang New Materials has innovatively established a production system that integrates direct atomization of aluminum in an inert environment, significantly reducing energy consumption and environmental impact [9]. - The industry is moving towards environmentally friendly and resource-saving production methods, driven by increasing public awareness and regulatory requirements [8][11]. Global Market Dynamics - The global demand for micro-fine spherical aluminum powder is on the rise, with production technologies continuously innovating to meet stringent performance requirements [11]. - Asia, particularly China, Japan, and South Korea, has become a major region for aluminum powder production and export, with significant competition in production technology and market share [12].

Group 1 - Company "Zuxing New Materials Co., Ltd." has submitted its prospectus for an IPO on the Beijing Stock Exchange, with West Securities as the sponsor [1][2] - The company is based in Changsha, Hunan Province, and focuses on the research and development of aluminum pigments and fine spherical aluminum powder [1][5] - As of May 9, 2025, there are 146 A-share listed companies registered in Hunan, with 86 of them located in Changsha, significantly higher than other cities in the province [1] Group 2 - Zuxing New Materials was established in 1998 and has evolved from its predecessor, Shenzhen Zuxing, which was one of the first companies in China to enter the aluminum pigment industry [5][6] - The company has 579 employees as of the end of 2024, with approximately 50% in production roles [5] - The company plans to raise approximately 258 million yuan through the IPO to fund projects for high-purity fine spherical aluminum powder and high-performance aluminum pigments [8] Group 3 - The main products of Zuxing New Materials include aluminum pigments and fine spherical aluminum powder, with revenue contributions of 47.65% and 52.35% respectively in 2024 [10][11] - The company's revenue has shown growth over the past few years, with figures of approximately 629 million yuan, 690 million yuan, and 707 million yuan for 2022, 2023, and 2024 respectively [11] - The net profit for the same years was approximately 51.78 million yuan, 86.74 million yuan, and 58.72 million yuan, indicating fluctuations in profitability [11] Group 4 - Zuxing New Materials has a competitive edge in the high-end aluminum pigment market, with a gross margin of 39.95% for aluminum pigments in 2024, compared to a lower margin of 4.07% for fine spherical aluminum powder [11][15] - The company faces competition from both domestic and international players in the aluminum pigment and fine spherical aluminum powder markets [11][15] - In 2022, China's aluminum pigment production reached approximately 53,200 tons, making it the largest producer globally [15][16] Group 5 - The company relies heavily on a few suppliers, with over 76% of its procurement coming from Yunnan Aluminum Co., Ltd., indicating a risk of supplier concentration [18][19] - Zuxing New Materials has established a diverse customer base, including major multinational companies in the coatings industry [21] - The company has experienced negative cash flow from operating activities over the past three years, primarily due to increasing accounts receivable and inventory levels [21]

Core Viewpoint - Changsha Zuxing New Materials Co., Ltd. has had its IPO application accepted by the Beijing Stock Exchange, with West Securities as the sponsor [3] Company Overview - Zuxing New Materials was established in 2007 and focuses on the research and development of aluminum pigments and fine spherical aluminum powder, which are part of the non-ferrous metal functional powder materials in the new materials industry [3] - The company has notable clients including AkzoNobel, PPG, Nippon Paint, and BASF, among others [3] Financial Performance - Revenue for Zuxing New Materials is projected to be 629 million yuan in 2022, 690 million yuan in 2023, and 707 million yuan in 2024 [3] - Net profit attributable to the parent company is expected to be approximately 51.78 million yuan in 2022, 86.74 million yuan in 2023, and 58.72 million yuan in 2024 [3] Financial Metrics - Total assets as of December 31, 2024, are estimated at approximately 954.65 million yuan, with total equity of about 773.86 million yuan [4] - The company's debt-to-asset ratio has improved from 22.01% in 2022 to 9.91% in 2024 [4] - Gross profit margin is projected to be 21.27% in 2024, slightly down from 21.65% in 2023 [4] IPO History - Zuxing New Materials has attempted to go public multiple times, with its first application submitted in April 2016, which was withdrawn the day before the review [5] - The second attempt in July 2020 was also withdrawn 89 days later, leading to the termination of the review process [5] - The company signed a counseling agreement with West Securities in October 2020 and later changed its listing application from the Growth Enterprise Market to the Beijing Stock Exchange in March 2025 [6]

Core Viewpoint - Zuxing New Materials Co., Ltd. has had its IPO application accepted by the Beijing Stock Exchange, with West Securities as the sponsor [3] Company Overview - Established in 2007, Zuxing New Materials focuses on the research and development of aluminum pigments and fine spherical aluminum powder, which are part of the non-ferrous metal functional powder materials in the new materials industry [3] - Major clients include multinational paint giants such as AkzoNobel, PPG, Nippon Paint, and BASF, as well as notable domestic companies [3] Financial Performance - Revenue for 2022, 2023, and 2024 is projected to be CNY 629.41 million, CNY 689.65 million, and CNY 707.09 million respectively [4] - Net profit attributable to the parent company for the same years is expected to be CNY 51.78 million, CNY 86.74 million, and CNY 58.72 million respectively [4] Financial Metrics - Total assets as of December 31 for 2022, 2023, and 2024 are CNY 873.06 million, CNY 939.95 million, and CNY 954.65 million respectively [5] - Shareholder equity has increased from CNY 635.60 million in 2022 to CNY 773.86 million in 2024 [5] - The company's debt-to-asset ratio has improved from 22.01% in 2022 to 9.91% in 2024 [5] - Gross profit margin is projected to be 21.27% in 2024, slightly down from 21.65% in 2023 [5] IPO Fundraising - The IPO aims to raise CNY 258 million for projects including the construction of a 5,000-ton high-purity fine spherical aluminum powder production facility and a 1,000-ton high-performance aluminum pigment project [6] Shareholder Information - The controlling shareholder and actual controller is Liang Xiaobin, who holds 52.14% of the company's shares [6]

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].

Industry Development History - The aluminum powder industry has evolved from the initial stamping method to ball milling, significantly improving production efficiency and safety [2] - The demand for spherical aluminum powder surged in the early 20th century due to military needs, leading to continuous improvements in production technology [2] - China introduced air atomization technology from the Soviet Union in the 1950s, leading to the development of various production methods, with nitrogen atomization becoming the dominant technology in recent years [2] Current Industry Status and Technology Level - China is the world's largest producer of electrolytic aluminum, with a projected output of 44.005 million tons in 2024, a 4.6% increase year-on-year [3] - The main applications of fine spherical aluminum powder include aluminum pigments, solar electronic pastes, refractory materials, military, and self-heating materials [3] - The market for fine spherical aluminum powder is closely tied to the development of downstream markets, with a steady increase in production and market size [4] Supply and Demand Situation - In 2022, China's production capacity for fine spherical aluminum powder reached 130,000 tons per year, ranking first globally [4] - The market size for fine spherical aluminum powder in China grew from 2.096 billion yuan in 2019 to 2.665 billion yuan in 2023, with a projected compound annual growth rate (CAGR) of 5.15% until 2030 [4] - There is a significant supply shortage for fine powder (particle size <10µm), particularly for high-performance applications in military and electronics [5] Application Areas - The aluminum pigment industry is a major application area for fine spherical aluminum powder, with a production growth rate of 6.67% from 2018 to 2022 [6] - The market for aluminum electrolytic capacitors is expanding, with the global market expected to reach 74.57 billion USD in 2024, driven by the demand for high-purity fine spherical aluminum powder [8][9] - Fine spherical aluminum powder is also crucial for producing aluminum nitride materials, which are increasingly used in high-performance electronic applications [10][11] Industry Development Trends - The fine spherical aluminum powder industry is expected to focus on quality improvement and efficiency enhancement, moving towards advanced manufacturing processes [16] - The demand for high-purity fine spherical aluminum powder is anticipated to grow as new applications emerge in electronics and other high-tech industries [16] - The industry is likely to see a consolidation of resources towards technologically advanced and financially robust enterprises, promoting a more efficient development path [16]