Qiangda Circuit IPO submission registered as a PCB company focusing on mid-to-high-end prototypes and small batch boards.

On July 26, Shenzhen Qianda Circuit Co., Ltd. (Qianda Circuit) applied for a change in the status of its IPO review on the Shenzhen Stock Exchange Growth Enterprise Market to "submitted for registration". CMSC is its sponsor institution, with plans to raise 600 million yuan. According to the prospectus, Qianda Circuit has been deeply involved in the PCB industry for twenty years, with its main business being the research, production, and sales of PCBs. It is a PCB enterprise focusing on high-end prototypes and small batch boards. The company's orders exhibit a demand characteristic of "multiple varieties, small batches, high quality, and fast delivery". Its products are widely used in industrial control, communication equipment, automotive electronics, consumer electronics, medical health, and semiconductor testing, among other application areas. The company's main business is PCB products, with an average proportion of revenue from its main business at 99.74%. The company's PCB products are divided into prototypes, small batch boards, and large batch boards based on order size, and into single/double-sided boards and multi-layer boards based on product layers. During the reporting period, the revenue composition of the company's PCB products is as follows: Qianda Circuit sells its products through a direct sales model, with no distributor model. Its domestic market mainly consists of electronic product manufacturers, while its foreign market includes both electronic product manufacturers and PCB traders. The company has its headquarters sales base in Shenzhen, and has established marketing channels in Beijing, Shanghai, Wuhan, Xi'an, among other locations, and maintains good cooperative relationships with many professional PCB traders, enabling it to respond quickly to customer needs. During the reporting period, the company served nearly 3,000 active customers, mainly professional electronic product manufacturers, PCB traders, and PCB manufacturers. Among its customers are companies such as Suzhou HYC Technology, Anhui Tatfook Technology, Scanfil, Phoenix, Shenzhen Edadoc Technology, Shenzhen Inovance Technology, SuZhou ChunXing Precision Mechanical, Wuhan Fingu Electronic Technology, and Wuxi Holyview Microelectronics, among others. In terms of finances, in 2021, 2022, and 2023, Qianda Circuit achieved operating revenues of approximately 710 million yuan, 731 million yuan, and 713 million yuan respectively, with net profits of 68.0691 million yuan, 90.9007 million yuan, and 91.0641 million yuan respectively during the same period. According to Qianda Circuit's prospectus, the company faces risks of intensified market competition. The global PCB industry competition is relatively dispersed, with many manufacturers and fierce market competition. With leading domestic PCB manufacturers investing in new factories and expanding production in recent years, large PCB companies may have even greater advantages in batch board competition. Future market competition may intensify, leading to industry consolidation and increasing industry concentration. Compared to industry leaders, the company focuses on mid- to high-end prototypes and small batch board markets, but there is still a certain gap in business scale, market share, etc. If the company fails to continuously improve its technological capabilities, production management, and product quality to respond to market competition, there is a risk of declining profits due to intensified market competition.