ZJK Industrial (ZJK) Registration filing summary

Company overview and business model

• Cayman Islands holding structure; substantially all operations run through PRC subsidiaries, with a Vietnam manufacturing unit established in April 2024; no VIE structure.

• Manufactures precision fasteners, structural parts and other metal components for electronics, new energy vehicles, 5G equipment, aerospace, energy storage and AI data-center cooling systems.

• Direct-sales model with customer collaboration on product design and R&D; 272 employees and output of 4.40 billion parts in FY2023, versus 3.68 billion in FY2022.

• North America expansion includes seven sales representative teams; a U.S. sales office is planned for early 2025, alongside Vietnam manufacturing expansion.

Financial performance and metrics

• FY2023 revenue $29.06M, up 17.2% YoY from $24.79M; gross profit $11.02M, up 22.27%, and gross margin 37.93%, versus 36.36% in FY2022.

• FY2023 net income $7.69M, up 5.65% YoY; operating income was $6.28M, essentially unchanged from FY2022.

• FY2023 operating cash flow $4.12M, versus $0.81M in FY2022; cash and cash equivalents were $2.83M at Dec. 31, 2023, with total equity of $21.70M.

• Revenue concentration remained high: PSM-ZJK and BULTEN Wuxi represented 52% and 24% of FY2023 revenue, respectively, versus 45% and 39% in FY2022.

Use of proceeds and capital allocation

• Estimated net proceeds of $4.26M, or $5.12M with full over-allotment, assume a $5.00 offering price; allocations: 50% manufacturing facilities, 10% North America sales, 15% fastener-sector acquisitions or investments, and 25% general purposes and working capital.

• Proceeds used in China would require conversion to RMB and PRC registration or approvals; stated processing estimates are around eight weeks for capital contributions and approximately four weeks or longer for loans.

• Future plans include R&D investment, a specialized equipment and mold R&D center, product-line expansion including aerospace fasteners, and Southeast Asia manufacturing capacity.