Jiangsu Kangrui New Material Technology Co., Ltd. (referred to as "Kangrui Materials") submitted its IPO application to the Shenzhen Stock Exchange in June 2025 and updated its filing materials in December of the same year, aiming to enter the A-share market.
Established in June 2001 and headquartered in Jiangyin City, Jiangsu Province, Kangrui Materials is a national-level specialized and sophisticated "Little Giant" enterprise focused on the R&D, production, and sales of high-precision, high-performance, and specially structured precision metal materials.
The company's precision metal material products include metal laminated composites, precision metal profiles, precision metal polished rods, fine metal wires, and precision metal tubes, among others. These cover various metal materials such as titanium-aluminum composites, titanium alloys, stainless steel, and aluminum alloys, forming a diverse product portfolio primarily used in the consumer electronics sector.
After more than two decades in the industry, Kangrui Materials experienced rapid growth from 2022 to 2024. However, financial data disclosed in its updated prospectus for the first half of 2025 revealed a sharp downturn in performance.
According to the prospectus, Kangrui Materials' recent financial performance has been volatile. From 2022 to 2024, the company's revenue increased from 1.053 billion yuan to 2.998 billion yuan, while its net profit attributable to shareholders surged nearly sevenfold from 47.556 million yuan to 411 million yuan. Non-GAAP net profit rose tenfold from 35.8545 million yuan to 415 million yuan, marking a period of explosive growth.
However, this trend reversed sharply in the first half of 2025. The company reported revenue of 1.07 billion yuan, net profit attributable to shareholders of 161 million yuan, and non-GAAP net profit of 154 million yuan, indicating a significant shift in its financial trajectory.
In recent years, the growth in Kangrui Materials' main business revenue has been primarily driven by increased sales of metal laminated composites and precision metal profiles. Metal laminated composites contributed the majority of revenue, accounting for over 50% of total revenue from 2023 to the first half of 2025.
As metal material usage in consumer electronics evolved, Kangrui Materials transitioned from "steel-aluminum" to "titanium-aluminum" composites. From 2024 to the first half of 2025, all revenue from metal laminated composites came from titanium-aluminum composites. In 2024, revenue from titanium-aluminum composites reached 1.931 billion yuan, accounting for 65.23% of main business revenue, with a capacity utilization rate of 101.55%. However, in the first half of 2025, revenue from titanium-aluminum composites dropped to 562 million yuan, representing only 53.17% of main business revenue, while capacity utilization fell sharply to 65.62%.
Although Kangrui Materials has not disclosed specific performance data for the second half of 2025, the company noted in its prospectus that due to adjustments in smartphone models using titanium alloy structural components by end customers, sales of titanium alloy materials declined temporarily in the latter half of the year. As a result, the company expects to report a temporary loss in the fourth quarter of 2025.
Kangrui Materials stated that it is currently collaborating with end customers on the development of titanium alloy materials for next-generation models, and sales are expected to gradually recover. The company also emphasized that progress in acquiring new customers remains steady, and the temporary loss does not impact its ongoing operational capabilities.
Kangrui Materials' prospectus repeatedly mentions a key customer referred to as "Company X." According to the filing, revenue from Company X's supply chain accounted for 758 million yuan, 2.173 billion yuan, and 2.121 billion yuan in 2022–2024, representing 74.39%, 88.41%, and 71.62% of main business revenue, respectively. In 2025, this proportion declined to 65.87%, corresponding to revenue of 696 million yuan.
Kangrui Materials did not explicitly identify Company X but described it as a leading global enterprise in consumer electronics. The company anticipates that revenue from Company X's supply chain will continue to account for a significant portion of its business in the near future.
Kangrui Materials acknowledged in its prospectus that Company X maintains strict supplier management systems. If the company fails to pass supplier qualification reviews, or if significant adverse changes occur in the business relationship, or if it cannot effectively adapt to changes in customer demand, its financial performance may be negatively affected.
Prior to its IPO application, Kangrui Materials distributed cash dividends totaling 90 million yuan in 2022 and 2024. The company's controlling shareholders, Zhu Wei and Li Li, collectively hold 72.52% of shares. Based on this ownership, the couple received approximately 65.268 million yuan from these dividends.
Notably, in 2023, Li Li transferred 1.3889 million shares of Kangrui Materials to BYD, reducing her direct ownership from 9.07% to 5.55%. The transaction was priced at 43.2 yuan per share, totaling 60 million yuan. Including dividend distributions and the share transfer, the couple cashed out approximately 120 million yuan before the IPO.
In its current IPO plan, Kangrui Materials aims to raise about 1.105 billion yuan to fund projects including an annual production capacity of 5,000 tons of titanium alloy materials, an annual output of 4,000 tons of metal laminated composite components and composite materials, an R&D center construction project, and supplementing working capital.
However, the company's current capacity utilization rates remain low. In the first half of 2025, utilization rates for metal laminated composites, precision metal profiles, precision metal polished rods/tubes, and fine metal wires were 65.62%, 48.23%, 85.97%, and 74.29%, respectively.