Jia Chi Technology resumes IPO registration procedures, a major domestic provider of electromagnetic functional materials and structures.

On August 12, in accordance with Article 30 of the "Administrative Measures for the Public Offering of Stocks for the First Time," the Shanghai Stock Exchange resumed the IPO registration process for Chengdu Jiachi Electronics Technology Co., Ltd. (referred to as Jiachi Technology) on the Science and Technology Innovation Board. CITIC SEC is its sponsoring institution, planning to raise 1.245 billion yuan. The prospectus shows that Jiachi Technology is a leading domestic provider of electromagnetic functional materials and structures (EMMS), committed to leading and promoting the development of EMMS technology in China and contributing to the defense security and electronic information industry in China. EMMS is a key basic material for solving the stealth and electromagnetic compatibility of high-tech weapons and equipment in national defense and civil electronic information products, with significant demand in the national defense security and civil electronic information industries. Jiachi Technology focuses on the mainstream products and cutting-edge technology of the EMMS industry, insisting on independent innovation, breaking foreign technology barriers, achieving independent control, and covering product design, manufacturing, testing, sales, and service of stealth functional coating materials, stealth functional structural components, and electromagnetic compatibility materials in the electronic information field. The EMMS products provided by the company have significant technological advantages and characteristics in low-frequency ultra-wideband, multi-spectrum compatibility, and thin and lightweight aspects. Under the leadership of Academician Deng Longjiang, Jiachi Technology has gathered a team of professional talents with significant influence in the EMMS field in China, and has established national and Sichuan province science and technology innovation platforms such as the "National Electromagnetic Radiation Control Material Engineering Technology Research Center Achievement Transformation Base" and the "Sichuan Province Electromagnetic Functional Materials and Structures Engineering Technology Research Center," undertaking major national and provincial EMMS research projects, breaking through key technological bottlenecks in EMMS products such as "thinness" and "ultra-wideband." In the field of defense security, the stealth materials developed by the company have been extensively applied in major projects such as China's third and fourth generation fighter jets. In the civil electronic information field, the company's electromagnetic compatibility materials have been widely used in consumer electronics, communication equipment, and other electronic products. The company adheres to independent innovation and has solved major challenges in the EMMS industry, winning one national second prize for scientific and technological progress, one first prize for scientific and technological progress in Sichuan province, one third prize for national defense scientific and technological progress, one second prize for national defense technology invention, and one first prize for national defense scientific and technological progress, consecutively awarded as a "gold supplier" by a unit of the Aviation Industry Corporation of China. Financially, in 2021, 2022, and 2023, Jiachi Technology achieved operating revenues of approximately 530 million yuan, 769 million yuan, and 981 million yuan respectively, with net profits of approximately 167 million yuan, 484 million yuan, and 564 million yuan respectively during the same period. It is worth noting that, as stated in the prospectus, Jiachi Technology faces the risk of fluctuating performance due to military price evaluation. The company's products are mainly used in the military field, primarily in the field of stealth weapons and equipment, with over 95% of the revenue from military operations during the reporting period. There is revenue settled based on temporary contract prices in military business revenue, with the final settlement between the company and customers based on military-approved prices, resulting in adjustments to the revenue confirmed in the current period compared to the temporary price difference and the final approved price. Therefore, the difference between the temporary price and the final approved price may lead to fluctuations in the company's future operational performance.