PCB manufacturer Jinbaize's IPO was accepted, raising 493 million yuan to build a smart hardware flexible project

On July 17, Shenzhen Jinbaize Electronic Technology Co., Ltd. (hereinafter referred to as "Jinbaize") was accepted for listing on the Growth Enterprise Market.

The prospectus disclosed that Jinbaize focuses on the research and development of electronic products and hardware innovation, and mainly engages in printed circuit boards, electronic manufacturing services and electronic design services. At present, the company has the flexible manufacturing and rapid delivery capabilities for samples and small and medium batches.

During the reporting period, from 2017 to 2019, Jinbaize achieved revenue of 463 million yuan, 534 million yuan, and 524 million yuan respectively; net profit was 32.3007 million yuan, 40.1253 million yuan, and 46.5224 million yuan respectively.

In terms of main business income, among printed circuit boards, electronic manufacturing services and electronic design services, printed circuit boards accounted for more than 70% of the revenue, which were RMB 368 million, RMB 423 million and RMB 373 million respectively during the reporting period, accounting for 79.42%, 79.18% and 71.16% of the main business income respectively.

Currently, Jinbaize has cooperated with more than 15,000 customers from all over the world, including hundreds of research institutes and universities.

Among them, the sales revenue of the company's top five customers accounted for the following proportions of the main operating revenue:

Overall, during the reporting period, the revenue share of the top five customers was 16.10%, 14.77% and 19.05% respectively, all of which did not exceed 20%, and there was no high customer concentration.

However, due to the impact of Sino-US trade frictions, the company's overseas markets have been affected. During the reporting period, the company's sales to the United States accounted for 5.67%, 6.47% and 5.78% of its main business income respectively. Because the company's downstream customers include information technology, industrial control, consumer electronics and other social fields of production and life. In the long run, if Sino-US trade frictions intensify, it may further impact the global economy, and then affect the entire Chinese electronic circuit industry, and have an adverse impact on the company's operating conditions.

In addition, from the perspective of the PCB industry chain, the purchase price of raw materials such as copper clad laminates, prepregs, and copper balls has increased year by year, and the various components required by the company are affected by the supply and demand relationship in the international market, and the prices of components in the market fluctuate greatly. At the same time, under the influence of the trade war, some imported components will be hindered, which will in turn affect the company's operating costs and gross profit margins.

According to the prospectus, the company's gross profit margin remained at a relatively high level, at 29.62%, 27.91% and 31.31% respectively. However, due to the intensified competition in the industry, in order to maintain old customers and develop new customers, there is pressure on quotations, which has compressed the company's profit margin and faced the risk of a decline in gross profit margin.

Under this circumstance, in order to stabilize the company's long-term operation and development, Jinbaize also accelerated its entry into the capital market.

It is worth noting that this time, Jinbaize plans to raise 493 million yuan to invest in the construction of intelligent hardware flexible manufacturing projects, R&D center construction projects, electronic circuit flexible engineering service digital middle platform projects, and to supplement working capital.