XinXing Tools' application for an IPO on the Growth Enterprise Market has been accepted. It is a leading domestic manufacturer of hole processing tool.

On June 23, Zhejiang Xinxing Tools Co., Ltd. (referred to as Xinxing Tools) had its IPO on the ChiNext board of the Shenzhen Stock Exchange accepted. Huatai United Securities is its sponsoring institution, with plans to raise 560 million yuan. The prospectus shows that Xinxing Tools is a leading domestic manufacturer of hole processing tools, focusing on the research, production, and sales of drilling tools since its establishment. The company has formed a series of products including annular drilling series, solid drilling series, and related supporting products. The company's products are widely used in engineering construction, rail transit, shipbuilding, energy equipment, machinery manufacturing, and CNC machining fields. The company's products are used by customers such as China Railway, China National Nuclear Corporation, Bosch, Panas, and other domestic and foreign enterprises, and are applied in well-known projects such as Qinshan Nuclear Power Station, Shanghai Maglev Train Project, East Sea Bridge, San Francisco Bay Bridge, and Busan Dong Bridge. In recent years, with the transformation of downstream end-users' production concepts from "relying on cheap labor" to "improving processing methods to increase efficiency" and the transformation and upgrading of the CNC machine tool market, the demand for cutting tools and performance requirements have also increased rapidly. During the reporting period, the company timely grasped the trend of market demand changes, actively introduced advanced production equipment to increase production capacity, with the capacity utilization rate of the main products reaching 96.02% and the production-sales rate reaching 101.47%. Currently, expanding production capacity has become an urgent task for the company's further development. In the 2024 annual general meeting of shareholders, it was determined that the board of directors would implement this, with the funds raised mainly used for investment in the following projects: Through the implementation of the investment projects in this fundraising, the company will expand its new production base, introduce advanced production equipment domestically and internationally to effectively address the bottleneck of the company's CNC tool production capacity, and meet the rapidly growing market needs. After the completion of the fundraising project, it is expected to increase production capacity by 5 million pieces/year of thread cutting tools, 1 million pieces/year of changeable head tools, 450,000 pieces/year of solid carbide drill bits, and 150,000 pieces/year of fixtures, with an estimated annual revenue of about 510 million yuan and a net profit increase of about 108.942 million yuan. In terms of finance, Xinxing Tools achieved operating income of about 391 million yuan, 425 million yuan, and 467 million yuan in 2022, 2023, and 2024 respectively. During the same period, the company achieved net profits of about 172 million yuan, 177 million yuan, and 185 million yuan respectively.