A-share IPO | Optical glass and special functional glass manufacturer Gobijia (835438.BJ) opens subscription. Products have entered the supply chain system of BYD Company Limited.

On March 13th, Ge Bi Jia (835438.BJ) started its IPO subscription with an issuance price of 10 yuan per share, a subscription limit of 950,000 shares, a P/E ratio of 11.04 times, and it belongs to the Beijing Stock Exchange, with China Securities Co., Ltd. as its sole sponsor. The prospectus revealed that Ge Bi Jia is a high-tech enterprise engaged in the research, development, manufacturing, and sales of optical glass and special functional glass. The company's optical glass is widely used in applications such as security monitoring, car lenses, optical instruments, smart projection, photography and filming, smart car lights, and high-end crafts. The company has become one of the few major manufacturers in China that can mass-produce optical glass and special functional glass. Currently, Ge Bi Jia can produce over 100 types of optical glass grades, covering mainstream varieties such as crown, flint, lanthanide, and phosphate optical glass. The product form of optical glass has extended from materials (plates) to components and elements. In early 2021, the company established a wholly-owned subsidiary Ge Bi Jia Precision to produce optical glass components. In June 2022, non-spherical lenses for car lights entered the supply chain system of BYD Company Limited as the company's first optical element product. During the reporting period, the company's main operating income by product category is as follows: According to data from the China Optical Optoelectronic Industry Association, in 2022, China's optical material market reached 3.1 billion yuan, with optical glass materials and components playing one of the most widely-used applications in optical materials that serve optical imaging functions. Due to the characteristics of large investment scale, long investment payback period, and high technological barriers in the optical glass industry, the industry has a high market entry threshold and concentration. The major domestic companies in the industry include Chengdu Guangming, Xinhua Guang, and Ge Bi Jia, with these three companies holding a large share of the market collectively. It is understood that video surveillance products are one of the most important components in the security equipment market, and optical lenses are the core components of security video surveillance cameras, playing a crucial role in image quality. Currently, security video surveillance products are moving towards high-definition, networked, and intelligent development. The deepening application of 5G, cloud computing, and big data has increased the application scope and demand for security camera products, placing higher requirements on the quality and optical performance of upstream optical glass materials. According to statistics and forecasts from the China Industry Research Institute, China's video surveillance market size rapidly grew from 29 billion yuan in 2011 to 116.3 billion yuan in 2017, with a compound annual growth rate of 26.05%, surpassing the global average development speed. Data from Frost & Sullivan shows that the shipment volume of security monitoring in China reached 250 million in 2016 and is expected to exceed 800 million in 2025, with an estimated compound annual growth rate of 14.26%. In the context of favorable policies and rapid technological development, the future development prospects of China's security surveillance market are broad. It is reported that after deducting issuance expenses, Ge Bi Jia plans to use the raised funds for the following projects: Financially, in the fiscal years 2021, 2022, and 2023, the company's operating income is approximately 385 million yuan, 429 million yuan, and 808 million yuan respectively. The net profits are approximately 50.31 million yuan, 45.83 million yuan, and 104 million yuan respectively. It is important to note that the prospectus specifically warns investors to pay attention to the risk of declining performance of optical glass products. During the reporting period, the company's revenue mainly came from optical glass and special functional glass, with the revenue scale of special functional glass experiencing significant growth year by year. However, there have been significant fluctuations in the revenue of optical glass products. In 2021, the revenue from optical glass products was approximately 364 million yuan, with a substantial increase of 72.53% compared to 2020. In 2022, the revenue from optical glass products decreased to 314 million yuan, a decrease of 13.75% compared to 2021. The revenue of this product is expected to further decline in 2023, with the revenue from optical glass products in 2023 approximately 286 million yuan, a decrease of 8.98% compared to 2022.