Jiangxi JCC Copper Foil Technology Applies for IPO

According to the information coming from the Shenzhen Stock Exchange, a listing review committee was to be convened on June 15 (i.e., the 43rd meeting for the review of listing applications). At this event, the first task of the committee was to evaluate the application from Jiangxi JCC Copper Foil Technology for an IPO. Jiangxi JCC Cooper Foil Technology is a subsidiary of Jiangxi Copper Corporation. Furthermore, this decision to have the subsidiary spin off and launch an IPO came after Tongling Nonferrous Group had spun off its subsidiary Tonggguan Copper Foil and listed it in the second-board market (GEM).

Jiangxi JCC Copper Foil Technology develops, manufactures, and sells various types of high-performance electrolytic copper foils. The two main segments of its product portfolio are copper foils for electronics and copper foils for Li-ion batteries. Its products are widely adopted across different application fields, including NEV power batteries, energy storage equipment, electronics, copper-clad laminates (CCLs), and PCBs.

The range of products from Jiangxi JCC Copper Foil Technology is extensive. The company has developed copper foils that come in different thicknesses and are flexible. These are suited for applications that require high degrees of curvature, frequency, and speed. The range of thickness for its copper foils is from 4.0μm to 140μm, and their maximum width reaches 1,370mm. The company also creates customized products according to their clients’ specifications, thus providing maximum client satisfaction.

In terms of production capacity, Jiangxi JCC Copper Foil Technology currently has a total of 30,000 tons per year for high-performance electrolytic copper foils. The total production capacity is evenly divided between products for electronics and Li-ion batteries.

Regarding copper foils for Li-ion batteries, Jiangxi JCC Cooper Foil Technology is now able to supply 6μm foils to its clients and has achieved mass production for 4μm foils. In fact, the company is one of the few Chinese suppliers for copper foils to reach 10,000 meters in scale for the production of 4μm foils used in Li-ion batteries. Additionally, the company has developed an ultra-thin 3.5μm foil. In the future, the company will expand further into the market segments for longer and thinner foils used in Li-ion batteries and CCLs.

In terms of product specifications, Jiangxi JCC Copper Foil Technology is capable to mass producing foils with thicknesses ranging from 4µm to 10µm. At the same time, the company can modify specifications based on the needs of its clients. In terms of product performance, the company’s foils used in Li-ion batteries exhibit excellent mechanical properties and high levels of wetting and stability.

As for financial performance, Jiangxi JCC Cooper Foil Technology posted operating revenues of RMB 1.06 billion for 2020, RMB 1.797 billion for 2021, and RMB 2.41 billion for 2022. Its net profits for these three same years came to RMB 120 million, 220 million, and 170 million respectively. Even though the company’s revenue has risen rapidly, there has also been a significant decline in net profit.

The company had yet to make a turnaround in profit in the first quarter of 2023. The company’s audited financial data reveals that the operating revenue for the first quarter was RMB 550 million, reflecting a year-on-year drop of 4.4%. The company’s net profitability for the same period fell by 32.68% year on year to RMB 41.42 million. The company’s guidance for the first half of 2023 projected a realized revenue of RMB 1.28-1.3 billion, reflecting a year-on-year growth of 13-14%. After various deductions, the non-recurring net profit attributable to the parent company is estimated to reach RMB 50-64 million, translating to a year-on-year decline of 36-49%.

For the IPO, Jiangxi JCC Copper Foil Technology plans to issue no more than 167 million shares for raising around RMB 2 billion. After deducting various expenses, the proceeds will be used to fund the phase 4 of an expansion and upgrade of a project (20,000 tons per year) and supplement working capital. The company said this project will contribute to its initiative of increasing the scale of the domestic production copper foils. With the project, the company will be able to produce at a larger scale, ship in larger batches, and provide a wider variety of products. This, in turn, will extend the company’s influence in the market and allow the company to carry out its growth strategy.

Unit: RMB 10,000

This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.