ZJK Industrial (ZJK) Registration filing summary

Company overview and business model

• Precision metal parts maker serving new-energy vehicles, consumer electronics, aerospace, energy storage, data centers and AI liquid-cooling systems; products include screws, nuts, bolts, stamped parts and CNC components.

• Direct-sales model with customer collaboration from product development; 272 employees and output of 4.40 billion parts in FY2023, versus 3.68 billion in FY2022.

• Manufacturing operations are conducted through PRC subsidiaries and a Vietnam subsidiary; the prospectus describes a conventional holding-company structure, not a VIE.

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

Financial performance and metrics

• FY2023 revenue was $29.06 million, up 17.20% YoY; gross profit rose 22.27% to $11.02 million, and gross margin increased to 37.93% from 36.36%.

• FY2023 operating income was $6.28 million, up 0.11%; net income was $7.69 million, up 5.65% from $7.28 million in FY2022.

• Operating cash flow was $4.12 million in FY2023 versus $0.81 million in FY2022; cash and cash equivalents were $3.90 million at Dec. 31, 2023.

• At Dec. 31, 2023, total assets were $38.28 million, total liabilities $16.58 million and shareholders’ equity $21.70 million; working capital was $12.79 million.

• PSM-ZJK and BULTEN Wuxi accounted for 52% and 24% of FY2023 revenue, respectively; FY2023 net income attributable to shareholders was $7.69 million and EPS was $0.13.

Use of proceeds and capital allocation

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

• At the assumed $5.00 offer price, estimated net proceeds are $3.26 million without the over-allotment option and $3.95 million if exercised in full, after discounts and estimated expenses.

• Proceeds intended for PRC operations must be transferred through offshore entities and converted to RMB; capital contributions and loans require applicable PRC registrations or approvals.

• No acquisition or investment target has been identified; management retains discretion to change allocation based on business conditions and funding needs.