Core Viewpoint - Quanzhou Jiadeli Electronic Materials Co., Ltd. (referred to as "Jiadeli") has received approval for its IPO, aiming to raise a total of 725 million yuan, with 525 million yuan allocated for a new materials production base in Xiamen and 200 million yuan for working capital [1][2]. Company Overview - Jiadeli, established in 2002, focuses on the research, production, and sales of BOPP electrical films, expanding its applications from traditional sectors to emerging fields like new energy vehicles and renewable energy [2]. - The company ranks second globally and first domestically in sales of capacitor polypropylene films, with market shares of 11.7% globally and 16.4% domestically [2]. Financial Performance - Jiadeli's revenue and net profit for the years 2022 to 2025 (first half) are as follows: - 2022: Revenue 550 million yuan, Net Profit 192 million yuan - 2023: Revenue 528 million yuan, Net Profit 141 million yuan - 2024: Revenue 734 million yuan, Net Profit 238 million yuan - 2025 (H1): Revenue 367 million yuan, Net Profit 125 million yuan - The company experienced a decline in revenue and net profit in 2023 [4][5]. Product Pricing and Margins - The average selling price of BOPP electrical films has decreased over the reporting period, with prices of 53,300 yuan/ton in 2022, 49,700 yuan/ton in 2023, and 50,000 yuan/ton in 2025 (H1) [6]. - Jiadeli's gross margin for its main business significantly exceeds that of comparable companies, with margins of 49.29%, 41.91%, 46.29%, and 48.79% over the reporting periods, compared to industry averages of 41.31%, 33.22%, 32.88%, and 36.85% [6]. Supply Chain Dependencies - Jiadeli relies heavily on a single overseas supplier, Borouge, for polypropylene resin, accounting for over 90% of its raw material purchases during the reporting period [8]. - The company acknowledges potential risks if Borouge cannot supply materials due to trade policies or geopolitical factors, which could adversely affect operations [8]. Equipment Supply - The production equipment for BOPP electrical films is sourced from a limited number of global manufacturers, primarily from Germany, which poses a risk if international trade tensions arise [9][10]. Shareholding Structure - The controlling shareholders, Huang Zezhong and Huang Yanhua, are cousins, holding a combined 95.89% of the company's shares [12]. - New investors have been introduced prior to the IPO, with specific agreements in place regarding share repurchase under certain conditions [14][15].