Another successful IPO has been held by suppliers such as CATL, Tesla, BMW, Audi, Mercedes Benz, NIO, and Xiaopeng Motors

Advantages in the field of new energy vehicles

Jinlu Electronics focuses on the research and development, production, and sales of PCBs. The company specializes in the automotive PCB market, especially in the field of new energy vehicle PCB applications. Its products include battery management systems (BMS), motor controllers, DC/DC converters, car chargers, and more ADAS、 The core components and supporting facilities such as charging piles are the largest PCB supplier of CATL, the world's largest new energy vehicle battery manufacturer, and have strong competitive advantages in the field of new energy vehicle BMS.

Jinlu Electronics has two major production bases in Qingyuan, Guangdong and Anlu, Hubei, covering a total area of about 450 acres. The planned annual PCB production capacity is 5.2 million square meters, and it currently has an annual production capacity of 2.2 million square meters. Meanwhile, Jinlu Electronics is a national high-tech enterprise and a research and development center for circuit board engineering technology in Guangdong Province.

In terms of performance, from 2018 to the first half of 2021, Jinlu Electronics achieved revenue of 528 million yuan, 609 million yuan, 792 million yuan, and 576 million yuan, with net profits attributable to the parent company of 39.6865 million yuan, 49.1482 million yuan, 67.3951 million yuan, and 46.4446 million yuan, respectively. The company's profitability level continues to improve.

From a product perspective, Jinlu Electronics' main business revenue sources include three categories: single/double-sided boards, multi-layer boards, and processing services. During the period, the proportion of revenue from single/double-sided boards remained around 40%, while multi-layer boards remained the company's largest source of revenue, accounting for around 60%.

Jinlu Electronics expects its revenue to be 1.3 billion to 1.33 billion yuan in 2021, a year-on-year increase of 64.12% to 67.90%, and an expected net profit attributable to the parent company of 94 million to 99 million yuan, a year-on-year increase of 39.48% to 46.89%. Jinlu Electronics' performance has shown a trend of increasing year by year, mainly due to strong demand from downstream customers, coupled with the release of new production capacity in the second half of 2020, resulting in significant growth in the company's operating income and net profit.

The prospectus shows that the actual controllers of Jinlu Electronics are Li Jilin and Zhou Min. Among them, Li Jilin directly holds 28.87% of the company's shares and indirectly holds 3.62% of the company's shares through Kemero Investment, making him the largest shareholder of the company; Li Jilin's spouse Zhou Min holds 6.87% of the company's shares and jointly controls 39.36% of the company's equity, making them the actual controllers of the company.

Intense domestic competition

PCB is the fundamental component of electronic products, and almost all electronic devices require PCB, which has enabled the PCB manufacturing industry to develop steadily for a long time.

China is the world's largest PCB producer and one of the regions in the world that can provide the largest PCB production capacity and the most complete product types. In 2019, the overall output value of China's PCB industry reached 32.9 billion US dollars, accounting for 53.73% of the global PCB industry's total output value. It is expected that by 2024, the output value of China's PCB industry will reach 41.8 billion US dollars, accounting for 55.07% of the total output value of the global PCB industry.

There are approximately 1500 PCB production enterprises in China, and the market competition is fierce, mainly focused on technical strength, product stability, product delivery time, price, and other aspects. As of the end of 2020, there were a total of 29 PCB listed companies in China. Although Jinlu Electronics has developed into the largest PCB supplier of CATL, its revenue and net profit in 2020 ranked 26th and 26th respectively compared to other listed companies in the same industry.

Jinlu Electronics focuses on the automotive PCB market, especially in the field of new energy vehicle PCB applications. In the first half of 2021, automotive electronics revenue accounted for 45.85% of total revenue. In the field of automotive electronics, Jinlu Electronics has accumulated high-quality customers in the new energy vehicle industry, such as CATL, Guoxuan High tech, Funeng Technology, Teruide, Yutong Bus, Geely Automobile, Xinrui Technology, and Yingbo. In the field of communication, Jinlu Electronics has well-known direct or terminal customers such as Huawei, ZTE, FiberHome, Cambridge Technology, etc; We have Honeywell in the field of industrial control ABB、 Dingxin Communication, Jingce Electronics, and other well-known direct or terminal customers.