Currently, global technological innovation is entering a breakthrough period on the eve of a new round of technological revolution, with disruptive technologies represented by AI, quantum information, and biotechnology showing signs of integration, intersection, and multi-point explosion.
In this transformation that reshapes the global economic landscape, printed circuit boards (PCBs), known as the 'mother of electronic products,' are transforming from traditional electronic supporting products into the infrastructure supporting trillion-level industries such as computing infrastructure, humanoid robots, and the low-altitude economy, thanks to their pivotal role as a hub connecting Connection Chips, Sensors, and other core Components.
The market is flooded with various enticing claims, such as 'A single AI Server PCB is worth hundreds of dollars, with a gross margin as high as 50%.' Although such exaggerated statements often lack rigorous data support, they reflect the market's frenzied pursuit of the PCB Sector, further bringing the PCB Industry Chain from behind the scenes into the spotlight.
Among them, copper-based materials, as the key carrier for PCB manufacturing—from high-precision copper balls, copper oxide powder to electrolytic copper foil—its performance breakthroughs directly determine the reliability of circuit boards in extreme scenarios such as high-frequency and high-speed transmission, and high-temperature and high-pressure conditions, becoming a fulcrum for industrial upgrading. In this context, core enterprises in the Industry Chain have also been elevated to an unprecedented strategic height, and the listings of related enterprises will attract high market attention, worth in-depth observation.
Today, a leading enterprise in the electronic circuit industry for copper-based materials—Jiangxi Jiangnan New Material Technology Co., Ltd. (hereinafter referred to as 'Jiangnan New Material')—is landing on the Main Board of the Shanghai Stock Exchange. On the first day of listing, the stock price of Jiangnan New Material opened over 500% higher. As of the time of writing, it is reported at 83.47 yuan, up 691.94%.
With Jiangnan New Material going public at this time, coinciding with the value reassessment of the Technology Sector in the Hong Kong A-shares market, what highlights does this innovation-driven enterprise rooted in Jiangxi have to offer?
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Stable financial condition: Benefiting from the explosion of AI computing power and other markets, revenue and net income have rapidly increased.
Going public is actually a rigorous selection, a comprehensive review of the company's strategic path, financial health, business model, business compliance, competitive advantages in the market, and the prospects of the sector it operates in.
As a leading company in the field of copper-based New Materials in China, Jiangnan New Materials has built strong market competitiveness in core areas such as communications, computers, consumer electronics, and automotive electronics through continuous technological innovation and deep layout of the Industry Chain.
By March 2025, the company had accumulated 96 patent authorizations, including 17 invention patents, 78 utility model patents, and 1 design patent. These patents cover the entire process of copper-based material preparation, performance optimization, and precision processing, such as its independently developed 'microcrystalline phosphor copper ball preparation technology' which precisely controls the grain size to below 50 micrometers, with copper purity reaching 99.93%, far exceeding industry standards, significantly improving the yield and efficiency of the PCB plating process. This technological advantage directly translates into high recognition of Jiangnan New Materials' products by customers, enhances customer loyalty, and allows the company's products to stand out in market competition.
In recent years, with the explosive growth of AI computing power and new energy vehicles, the demand for the PCB market has shown structural upgrades. However, behind the booming industry, competition between enterprises has become increasingly fierce. Amidst a price war in the industry, Jiangnan New Materials has demonstrated good profitability and risk resistance for several consecutive years. Public information shows that from 2021 to 2023, Jiangnan New Materials maintained revenue above 6 billion yuan, with net profits of 0.147 billion yuan, 0.105 billion yuan, and 1.42 billion yuan respectively.
By 2024, Zhongyi Technology,
Specifically, from the perspective of product divisions, Jiangnan New Materials precisely positions the market with its technological advantages, with its core product copper ball series achieving a 24% global market share and 41% domestic market share, ranking first for several consecutive years; the sales revenue compound growth rate of copper oxide powder products has reached as high as 349.88% in the past three years, demonstrating strong production capacity and market resilience.
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Sustainable business model: defensive value stands out, resilience during downturn cycles.
Behind the strong profitability lies Jiangnan New Materials' sustainable business model. Its core is to establish a risk control system that spans the entire chain of procurement, production, and sales, and achieves stable development across cycles through the synergy of customer ecology and product matrix.
From the pricing mechanism perspective, Jiangnan New Materials employs a 'Copper price + processing fee' model that essentially disperses the risk of raw material price fluctuations through the supply chain transmission mechanism. The effectiveness of this model was verified during the extreme market scenario in 2022 when copper prices plummeted by 20% in a single month; the company successfully maintained its gross margin at around 3% that year by dynamically adjusting procurement rhythm and sales pricing.
The reason this mechanism can operate stably greatly relies on the company having a good and broad customer base at the sales end, which brings relatively stable and continuous order demand to Jiangnan New Materials.
Data shows that among China's top 100 PCB enterprises, as high as 83% have a cooperative relationship with Jiangnan New Materials. In particular, strategic partnerships with leading customers like Avary Holding and Shennan Circuits have earned it substantial market share and scale. Additionally, in 2024, Jiangnan New Materials’ copper oxide powder business acquired 191 new customers in the lithium battery and photovoltaic fields, further diversifying its customer structure and dispersing the risk of single market fluctuations.
In the dimension of supply chain management, the combination of the 'sales-driven procurement' model and intelligent inventory management has constructed a dynamically balanced risk buffer. The company controls its preparation time within 7-10 days, forming efficient matches with the 2-3 day production cycle of copper ball products. Notably, the company
Further looking at it, the deeper value of this business model lies in upgrading the cost control ability of traditional material enterprises to the collaborative innovation capability of the industry chain ecology. This explains why while peers fall into price wars leading to widespread losses, Jiangnan New Materials can achieve counter-cyclical growth.
In the future, as the application of copper-based materials expands into more high-end manufacturing fields, the technical data and supply chain responsiveness accumulated through customer ecology may give rise to more barriers in profit model innovation.
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Towards a positive PCB market: a solid foundation is guaranteed, opening up a "tailwind" for the market.
Shifting the focus to a more macro perspective, the future development prospects of Jiangnan New Materials are becoming increasingly clear as the Global Strategy of the electronic industry upgrades and the national strategy deepens.
From the perspective of the Industry Chain, the structural recovery and the surge in innovative demand in the PCB industry have opened up growth space for the company.
According to Prismark data, the global PCB output value reached 81.74 billion USD in 2022. With the enhancement of electronic technology and the rapid iteration of electronic products, the global PCB output value is expected to grow to 90.41 billion USD by 2028, with a compound annual growth rate of 5.4% from 2023 to 2028.
Image source: Prospectus.
It is worth noting that according to market research agency IDC, the global AI Server market size is expected to maintain an annual growth rate of over 20% in the next five years. Moreover, the demand for high-performance PCB in AI Servers is experiencing explosive growth. Prismark data indicates that the compound growth rate of the global high-end PCB market will reach 14% from 2023 to 2026.
Jiangnan New Materials has leveraged its deep understanding of the development trends in the electroplating copper field within the Electronics Industry and customer demands, starting in 2019 to expand into high-precision copper-based heat sinks and oxidized copper powder product lines. It appears that with copper ball business as the foundation and oxidized copper powder as the second growth curve, Jiangnan New Materials is expected to fully benefit from industry upgrade dividends due to its leading position in the Industry.
At the same time, policy-driven industrial opportunities also inject stronger momentum for the company's development.
For instance, policies such as the "New Energy Vehicle Industry Development Plan (2021-2035)" and the "Smart Photovoltaic Industry Innovation Development Action Plan (2021-2025)" have directly catalyzed the demand for high-end copper-based materials in the new energy vehicle three-electrode system and photovoltaic components. The self-developed oxidized copper powder catalyst by the company has improved the silicon material conversion rate by 1.2% and is already being applied in bulk within the supply chains of leading photovoltaic companies; in the Lithium Battery field, its
The company stated that this fundraising investment intends to implement a project to construct 0.012 million tons of electronic-grade oxidized copper powder, precisely addressing the emerging demands for copper plating in photovoltaic components and composite copper foil for Lithium Batteries. It can be seen that once the project is realized, this product structure optimization resonating with policy orientation will further promote the company's sustainable development.
In addition, as a national-level Specialized, Special and New "Little Giant" enterprise, participating in the revision of the national standard for "Anode Phosphor Copper Material" and leading the drafting of the industry standard for "Oxidized Copper Powder" not only consolidates the industry’s voice but also positions it advantageously within the strategy of cultivating new quality productivity. It should be noted that Specialized, Special and New "Little Giant" enterprises are at the forefront of small and medium-sized enterprises' development and play an important supporting role in promoting new industrialization and developing new quality productivity.
From a more macro perspective on industrial evolution, the growth logic of Jiangnan New Materials has transcended simple cyclical fluctuations and is deeply embedded in the historical process of the global manufacturing sector's digitalization and low-carbon transformation. Its technological accumulation not only serves the current upgrade demands of the PCB industry but also positions it early in new fields such as PET composite copper foil and oxidized copper powder catalysts. As Chinese manufacturing shifts from scale expansion to value creation, such innovative companies that master core material technologies and integrate industry chain ecosystems are bound to become key participants in the new industrial revolution.
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Conclusion
At the intersection of the global technological revolution and industrial transformation, the listing of Jiangnan New Materials serves as a vivid interpretation of an era's proposition. As copper-based materials transform from the silent cornerstone of industrial civilization into a strategic pivot of the intelligent era, this "single champion" enterprise, with twenty years of in-depth cultivation, is reconstructing Industry Chain value with "micron-level" technological precision.
Standing at the threshold of Capital Markets, Jiangnan New Materials' growth narrative has surpassed the boundaries of a single enterprise. Its layout in emerging tracks resonates with the national strategy of "new quality productivity." The industry standards it leads in formulating further push the game rules of China's materials industry from "following and adapting" to "independently defining."
This may very well be a profound metaphor for China's industrial upgrade: when the capillaries of the "world factory" surge with the genes of independent innovation, the reconstruction of the global value chain is no longer just a vision.
