ZJK Industrial (ZJK) Registration filing summary

Company overview and business model

• Manufacturer of precision fasteners, structural parts and other metal components for electronics, new-energy vehicles, aerospace, energy storage and AI liquid-cooling systems; direct-sales model with customer collaboration from product development.

• Produced 4.40B parts in FY2023 versus 3.68B in FY2022; employed 272 people at Dec. 31, 2023 and operated with 50 PRC patents and automated precision manufacturing equipment.

• Vietnam factory established in Apr. 2024; seven North American sales representative teams engaged, with a U.S. sales office planned for early 2025.

• Cayman holding structure operates through PRC and Vietnam subsidiaries, with no VIE; the offering is for holding-company shares, not direct interests in operating entities.

Financial performance and metrics

• U.S. GAAP revenue was $29.06M in FY2023 versus $24.79M in FY2022; net income was $7.69M versus $7.28M, respectively.

• FY2023 gross profit was $11.02M and gross margin 37.93%, versus $9.01M and 36.36% in FY2022; operating income was nearly flat at $6.28M versus $6.28M.

• FY2023 operating cash flow was $4.12M versus $0.81M in FY2022; year-end cash was $2.83M, total assets $38.28M and total equity $21.70M.

• PSM-ZJK and BULTEN Wuxi generated 52% and 24% of FY2023 revenue, respectively; related-party sales were $15.09M of total revenue.

Use of proceeds and capital allocation

• Planned net proceeds allocation: 50% to manufacturing facilities, 10% to North American sales, 15% to potential fastener-sector acquisitions or investments, and 25% to general purposes and working capital.

• At the $5 midpoint, estimated net proceeds are $3.257M without the over-allotment and $3.947M with full exercise; PRC registration or approval is required before funds can be contributed or loaned to PRC entities.

• No acquisition commitments were in place; management may reallocate proceeds, including to working capital, and has broad discretion over deployment.