National defense industry company Yongkang Defense Entrepreneurship Board IPO has been accepted, planning to raise 1.46 billion yuan.

On June 18, Jiangsu Yongkang Intelligent Defense Technology Co., Ltd. (referred to as Yongkang Defense) has been accepted for listing on the ChiNext board of the Shenzhen Stock Exchange. Sinolink is its sponsor institution, and it plans to raise 1.46 billion yuan. The prospectus shows that since its establishment in 1981, Yongkang Defense has always focused on the national defense science and technology industry, mainly engaged in the research, production, and sales of various types of weapons and equipment such as intelligent and high-tech ammunition series, end-to-end anti-jamming and defense weapon equipment series, and unmanned and automatic combat weapon equipment series, providing modern and intelligent weapons and equipment for various military services and research and development business. The company has now established a mature military product business system, with products covering various military services such as land, sea, air, rocket forces, and armed police. After decades of innovative development and meticulous work, the company has undertaken multiple national key engineering tasks and research and production tasks of key models for the military, and has developed more than 60 types of finalized products. It has become one of the important suppliers of weapons and equipment, and one of the few domestic military industry enterprises with comprehensive and final assembly capabilities for ammunition and weapon equipment. In terms of military product research and development, the company insists on driving product and technology development through independent innovation, and is committed to the development trends and directions of intelligence, unmanned, precision, and modernization of weapons and equipment. Through long-term research and model iterations, the company has accumulated many research results and core technologies in ammunition and weapon equipment design, detection and identification, intelligent control, and efficient destruction. Many of its products are important equipment in active service, and it is an important supplier of various types of weapons and equipment for the military, making important contributions to the equipment construction and upgrading of the military. In terms of production, the ammunition and weapon equipment produced by the company are customized products provided for military units, large military industrial groups, etc., supervised by military representatives appointed by the military. Therefore, the production of company military products is conducted based on sales orders and production schedules, presenting typical characteristics of "production to order." In addition, for some general parts processing, the company undertakes moderate pre-production of spare parts based on production experience. China's military industry research and production adopts strict licensing system, and those who have not obtained relevant military qualifications are not allowed to engage in related military product production activities. In terms of military product acquisition, the company's military product sales are mainly through bidding, single source, competitive procurement, etc. As a supplier of various modern and intelligent weapons and equipment, the company's main customers are various military units, large military industrial groups, showing clear and high concentration of customers. Therefore, the sales model of the company's main products adopts direct sales. The national defense industry has the industry characteristics of high concentration of downstream customers and specific procurement entities. The company's products mainly supply core customers such as military units, large military industrial groups, and affiliated research and production units. During the reporting period, the sales revenue of the company's top five customers accounted for 92.97%, 98.59%, and 100.04% of the main business income respectively, which is at a high level, indicating high customer concentration risk. In terms of finances, in the years 2023, 2024, and 2025, the company recorded operating income of approximately 194 million yuan, 652 million yuan, and 648 million yuan respectively; during the same period, the net profits were approximately 77.15 million yuan, 225 million yuan, and 228 million yuan respectively.