On August 14, Zhongchen Technology launched online and offline subscription, and the company intends to issue 37.193 million shares at an issue price of 49.97 yuan/share.

According to the plan, the raised funds are mainly intended to invest in the industrialization construction project of frequency converter and servo system; Inverter, servo system, elevator and construction elevator system integrated production base construction project; R&d center construction project; Marketing service network and information upgrading construction projects and supplementary working capital. All the investment projects are carried out around the company’s main business, aiming to further improve the company’s technical level and production capacity, broaden and extend the product line, expand and strengthen the scale of the main business, enhance the comprehensive competitive strength, improve the market share of products and the company’s influence.

Profitability is above the industry average

According to the prospectus, Zhongchen Technology was founded in 2006, is a high-tech enterprise specializing in product development, production, sales and service in the field of industrial automation, the main products are low-voltage frequency converter and servo system, of which frequency converter business accounts for more than 90%. The company independently developed and produced “Zhongchen” brand low-voltage frequency converter, servo system and other products, the power range covers 0.4kW-1,200kW, widely used in air compressor, plastic machinery, engineering machinery, water supply equipment, metallurgical equipment, textile machinery, machine tools, chemical machinery, mining machinery, printing and packaging industries.

SM812K01 
3BSE072270R1 

In recent years, the company closely follows the industry technology development trend, relying on large-scale production capacity, stable product performance and high-quality brand customer resource advantages, has always maintained considerable revenue scale and profitability. From 2020 to 2022, the average annual operating income of the company will be 594 million yuan, and the average annual net profit will be 176 million yuan. In the same period, the company’s average gross profit rate exceeded 43%, the average return on equity exceeded 37%, and the average net profit rate exceeded 29%. The average indicators of the same caliber of comparable companies in the same industry were 34%, 14% and 14% respectively.

From January to June 2023, the demand of the downstream application industry that the company has been deeply cultivating for many years has gradually recovered, and the expansion of new products and new fields has been superimposed, and the operating income has reached 306 million yuan, an increase of 15.06%. At the same time, in the first half of the year, the company reversed the impact of the suspension of production and sales in the first half of 2022, the capacity utilization rate (excluding outsourcing) significantly recovered to 108.55%, and continued to optimize product design and supply chain, making the comprehensive gross margin further increased to 42.15%, and achieved a net profit of 935.1771 million yuan, an increase of 32.55%.

Since its inception, the company has always attached great importance to technology research and development investment, adhere to independent innovation, aiming at the forefront of the industry technology, comply with the development trend of the industry technology, and actively carry out research in line with the market development. After years of development, the company has accumulated rich experience in technology research and development and product development, as of December 31, 2022, the company has obtained 11 patents and 22 software Copyrights, so that the company has formed a certain technological lead in the field of inverter. The company has been successively rated as a high-tech enterprise, Shanghai Science and Technology small giant enterprise, Shanghai “specialized and special new” enterprise and national specialized and special new “little giant” enterprise.

Relying on rich technical reserves and subdivision industry experience, Zhongchen Technology has a variety of categories of inverter, servo system and other products production capacity, the company’s product structure is perfect, new product reserves are rich, in wind power, injection molding, servo and other key development areas launched new products, at the same time has a strong customized development ability, can provide customers with perfect solutions, The development efficiency is high, the market reaction speed is fast, and it is unanimously recognized by downstream customers.