A-share subscription | Longchen Technology (920161.BJ) starts subscription, waiting for validation of new lithium battery related products to be implemented

On May 18th, Longchen Technology (920161.BJ) started its initial public offering with an issue price of 9.21 yuan per share and a maximum subscription limit of 1.5299 million shares. The price-earnings ratio is 14.98 times, and it is listed on the North Exchange. Guotai Haitong is its sponsor. The prospectus shows that Longchen Technology's main business is the research, production, and sales of BOPP film materials related to film capacitors. BOPP film materials are insulation materials made from polypropylene resin through a biaxial stretching process. They have the advantages of high insulation impedance, good thickness uniformity, low dielectric loss, and high dielectric strength, making them one of the core raw materials for film capacitors. The company's products are mainly divided into base film and metallized film categories. The main products of Longchen Technology, base film and metallized film, are the main raw materials for film capacitors. Film capacitors have the advantages of self-healing, high insulation impedance, low dielectric loss, high dielectric strength, long service life, and excellent frequency characteristics, and are widely used in various fields such as new energy vehicles, photovoltaic power generation, wind power generation, industrial control, power grids, and household appliances. In addition, the company actively responds to market demand and has developed base film products suitable for lithium battery composite current collector medium. Currently, this product is in the stage of sample verification, and will be expanded to new application areas after the product validation. In terms of finance, the company achieved operating income of approximately 371 million yuan, 604 million yuan, and 642 million yuan in 2023, 2024, and 2025, respectively. During the same period, the net profit was approximately 43.1948 million yuan, 78.4724 million yuan, and 99.2828 million yuan, respectively. For each reporting period, the net cash flow from operating activities of the company was -52.2026 million yuan, 3.9593 million yuan, and -26.7321 million yuan. In 2023 and 2025, the negative net cash flow from operating activities was mainly due to the company using discounted small and medium-sized bank acceptance bills as financing activities, with the related proceeds included in "other cash received related to financing activities," and endorsing the bills received from the sale to equipment and engineering suppliers without reflecting cash flows.