ZJK Industrial (ZJK) Registration filing summary

Company overview and business model

• Cayman Islands holding structure; manufacturing and sales are conducted through operating entities in China and Vietnam, with no VIE structure. Investors buy holding-company shares, not direct equity in operating entities.

• Produces precision fasteners, structural parts and other metal components for electronics, new energy vehicles, circuit boards, data centers and AI liquid-cooling systems; 272 employees and 4.40B parts produced in FY2023.

• Direct-sales model with customer collaboration from R&D through product design; seven North American sales representative teams, Vietnam factory established in April 2024, and U.S. sales office planned for early 2025.

• Core manufacturing technologies are internally developed; the R&D team has 10 employees, and the product portfolio includes standard and precision screws, nuts, bolts, turning, stamping and CNC parts.

Financial performance and metrics

• FY2023 revenue $29.06M, up 17.20% YoY; gross profit $11.02M, up 22.27%, and gross margin 37.93%, versus 36.36% in FY2022.

• FY2023 operating income $6.28M, up 0.11% YoY; net income $7.69M, up 5.65%; basic and diluted EPS $0.13, versus $0.12 in FY2022.

• Operating cash flow rose to $4.12M in FY2023 from $0.81M in FY2022; cash and equivalents were $2.83M, working capital $12.79M and total equity $21.70M at Dec. 31, 2023.

• Assets were $38.28M and liabilities $16.58M at Dec. 31, 2023; revenue concentration remained high, with PSM-ZJK at 52% and BULTEN Wuxi at 24% of FY2023 revenue.

Use of proceeds and capital allocation

• Estimated net proceeds: $4.26M, or $5.12M if the over-allotment option is fully exercised, assuming a $5.00 offer price.

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

• Proceeds intended for China must be converted to RMB and transferred via capital contributions or loans, subject to government registration or approval; stated processing estimates are ~8 weeks for contributions and ~4 weeks or longer for loans.

• No current acquisition or investment commitments; management may reallocate proceeds and has broad discretion over their use.