Lan Yu Co., Ltd. submits IPO registration, mainly engaged in research and development, production, and sales of digital printing ink.

On August 2nd, Zhejiang Lanyu Digital Technology Co., Ltd. (referred to as Lanyu Co., Ltd.) applied for a change in the IPO review status of the Shenzhen Stock Exchange ChiNext Board to "submit for registration." Guosen is its sponsor institution, planning to raise 502.13 million yuan. The prospectus shows that Lanyu Co., Ltd. is mainly engaged in the research, development, production, and sales of digital printing inks that meet the national energy-saving and environmental protection strategy. It is a national specialized and innovative "little giant" enterprise and a national high-tech enterprise. The company operates in the new materials industry, producing digital printing inks as key consumables for digital printing technology, which are used in digital printing equipment in the textile field. Through continuous technological research and development and process innovation, the company has reduced customers' dependence on imported inks and procurement costs, promoting the transformation of the textile printing and dyeing industry towards energy-saving, environmentally friendly, and clean production. Digital printing inks have been listed as a key product in the "New Materials Industry" category in the "Classification of Strategic Emerging Industries (2018)" by the National Bureau of Statistics and are included in the "Guiding Catalog for Industrial Structural Adjustment (2024)" as a priority encouraged industry for "digital inkjet printing" and "energy-saving and environmentally friendly ink production such as water-based inks, energy-cured inks, vegetable oil inks." In recent years, domestic digital printing inks have made significant technological progress, shifting from a model heavily reliant on imports to one focused on independent research and development. With the rapid development of digital printing technology, leading domestic digital printing ink manufacturers such as Lanyu Co., Ltd. have made breakthroughs in key elements of inks such as stability, color saturation, and compatibility with print heads through long-term research and development investments, driving the development of the digital printing market in the textile field. After years of development, Lanyu Co., Ltd. has become one of the enterprises with strong competitive advantages in the industry. The company's ink products can currently be adapted for use with industrial print heads from leading domestic digital printing equipment manufacturers such as Hangzhou Honghua Digital Technology Co., Ltd., Hangzhou Hongying Digital Technology Co., Ltd., Hangzhou Zhuansedi Digital Technology Co., Ltd., Shenzhen Hanhong Digital Printing Group Co., Ltd., and Shenzhen Runtian Zhi Digital Equipment Co., Ltd. Financially, in 2021, 2022, and 2023, Lanyu Co., Ltd. achieved operating revenues of approximately 272 million yuan, 313 million yuan, and 384 million yuan, respectively, with net profits of 60.46 million yuan, 72.10 million yuan, and 92.68 million yuan during the same period. It is worth noting that, as stated in the prospectus, there is a risk of the slowing down of the promotion and application of digital printing technology in the textile industry for Lanyu Co., Ltd. The company is mainly engaged in the research, development, production, and sales of digital printing inks that align with the national energy-saving and environmental protection strategy and are primarily used in the textile industry. As the speed of digital inkjet printing cannot yet fully reach the level of traditional printing in large volume, single-kind orders, traditional printing methods still have an advantage. Additionally, digital printing equipment is more expensive than traditional printing equipment, and the cost of digital printing inks is also higher, so digital inkjet printing is mainly used in scenarios with short delivery times, relatively small batch sizes, high added value, rich color patterns, etc. Furthermore, if traditional printing manufacturers switch to digital printing technology, they would need to replace existing production equipment and retrain production and technical personnel, resulting in high replacement costs. Therefore, traditional printing still holds a large market share in the textile printing field. If digital printing technology does not make further breakthroughs in equipment speed, consumables cost, and post-maintenance convenience, there is a risk of the slowing down of the promotion and application of digital printing technology in the textile industry, which could adversely affect the company's future operating performance.