ZJK Industrial (ZJK) Registration filing summary

Company overview and business model

• Manufacturing and sales of precision fasteners, structural parts and other metal components for EVs, electronics, aerospace, energy storage and AI data-center cooling systems.

• Direct-sales model; customer collaboration starts during R&D. Seven North American sales representative teams support market development; Vietnam factory established in April 2024, with a U.S. sales office planned for early 2025.

• 272 employees at Dec. 31, 2023; produced 4.40B parts in FY2023 vs. 3.68B in FY2022. 50 PRC patents and automated precision manufacturing and testing equipment.

• Cayman holding structure conducts substantially all operations through PRC subsidiaries and a Vietnam subsidiary; no VIE structure. Shares offered are in the offshore holding company, not operating entities.

Financial performance and metrics

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

• FY2023 operating income $6.28M, nearly flat YoY; net income $7.69M, up 5.65%; diluted EPS $0.13 vs. $0.12 in FY2022.

• FY2023 operating cash flow $4.12M vs. $0.81M in FY2022; cash and cash equivalents $2.83M at Dec. 31, 2023, with positive working capital of $12.79M.

• Dec. 31, 2023 total assets $38.28M, total liabilities $16.58M and shareholders’ equity $21.70M; short-term bank borrowings $37,184.

Use of proceeds and capital allocation

• Estimated net proceeds $4.26M, or $5.12M with full over-allotment; planned allocation: 50% manufacturing facilities, 10% North American sales network, 15% fastener-sector acquisitions/investments, 25% working capital and general corporate purposes.

• China deployment requires conversion to RMB and government registration or approval for capital contributions or loans; stated processing estimates are ~8 weeks for capital contributions and ~4 weeks or longer for loans.