On March 10, Jiangnan New Materials (603124.SH) began accepting subscriptions.
According to the Zhitong Finance APP, on March 10, Jiangnan New Materials (603124.SH) opened for subscription, with an issue price of 10.54 yuan per share, a subscription limit of 0.0115 million shares, a PE of 12.40 times, belonging to the Shanghai Stock Exchange, with CITIC SEC as its sole sponsor.
The prospectus discloses that Jiangnan New Materials mainly engages in the research and development, production, and sales of Copper-based New Materials. The company's core products include three main categories: copper ball series, copper oxide powder series, and high-precision copper-based heat sink series. The self-developed copper ball series products have been applied in various types and processes of PCBs and the copper plating processes of photovoltaic panels; the copper oxide powder series products have been applied in PCB copper plating processes, Lithium Battery PET composite copper foil manufacturing, organic silicon monomer synthesis catalysts, etc.; the high-precision copper-based heat sink series products have been applied in PCB embedded heat dissipation process fields. The core product industry chain terminals cover many fields, including Communications, Computers, Consumer Electronics, Automotive Electronics, Industrial Control, Medical, Aviation, New Energy, Organic Silicon, and more.
It is reported that Jiangnan New Materials' copper oxide powder series products achieved large-scale production and sales in 2021. The company plans to invest raised funds in new electronic-grade copper oxide powder production lines with an annual output of 0.012 million tons, which will greatly enhance the company's production capacity for copper oxide powder, and the copper oxide powder products are expected to be an important growth point for the company's future revenue and profits.
In terms of finances, for the fiscal years 2019, 2020, and 2021, the company achieved operating revenue of approximately 2.99 billion yuan, 3.598 billion yuan, and 6.284 billion yuan, respectively. The company's net income was approximately 61.2369 million yuan, 72.7145 million yuan, and 0.148 billion yuan.
It should be noted that the prospectus specifically reminds investors to pay attention to the risk of sustained negative cash flow from operating activities. During the reporting period, the company's net cash flow from operating activities was approximately -0.125 billion yuan, -0.307 billion yuan, -0.57 billion yuan, and -2.47 billion yuan respectively.
Jiangnan New Materials stated that the company's net cash flow from operating activities has remained negative, mainly because: on the one hand, the increase in the company's operating scale during the reporting period has led to a rapid growth in the demand for operating funds; on the other hand, there are discrepancies in the settlement methods with suppliers and customers, with some invoice discounts reflected in the cash flow from financing activities. If there are significant adverse changes in the company's credit policies or the collection situation from downstream customers in the future, the net cash flow from operating activities may continue to be negative, which may result in the company facing certain liquidity risks.
