Provider of electromagnetic functional materials and structures, Jia Chi Technology (688708.SH), plans to publicly issue 40.01 million shares.

Jiachi Technology (688708.SH) disclosed its intention to go public, with plans to issue 40.01 million shares, accounting for approximately 10% of the post-issuance proportion. Among them, the sponsor CITIC SEC's alternative investment subsidiary, CITIC SEC Investment Limited, will participate in the strategic placement of this issuance, with an initial co-investment amount of 5% of the total public offering, or 200.05 million shares. The preliminary inquiry date for this issuance is November 20, 2024, the subscription date is November 25, 2024, and the company will apply for listing on the Shanghai Stock Exchange's Sci-Tech Innovation Board as soon as the issuance is completed. The company is a major provider of electromagnetic functional materials and structures (EMMS) in China, committed to leading and promoting the development of EMMS technology in China and contributing to the national defense security and electronic information industry. EMMS is a key basic material for addressing the stealthiness of high-tech defense weapons and the electromagnetic compatibility of civil electronic information products, with significant demand in national defense security and the civil electronic information industry. The net profits attributable to the owners of the parent company in 2021 to 2023 were: 167 million yuan, 484 million yuan, and 564 million yuan, respectively. The company expects to achieve operating income of 1.02 billion to 1.15 billion yuan in 2024, with a year-on-year change of 3.99% to 17.25%; achieve a net profit attributable to the owners of the parent company of 572 million to 655 million yuan, with a year-on-year change of 1.47% to 16.20%; achieve a net profit attributable to the owners of the parent company after deducting non-recurring gains and losses of 548 million to 635 million yuan, with a year-on-year change of 4.84% to 21.48%. The company expects the full-year performance to continue to grow. After deducting issuance expenses from the funds raised, the company plans to invest in the following projects according to their urgency: the construction of an electromagnetic functional materials and structures production base project, the construction of an EMMS research and development center project, and supplementary operating funds, totaling 1.245 billion yuan. These investment projects are in line with the company's main business development and will contribute to the company's continued technological innovation.