Wanxiang Technology soars 205.98% on its debut day in the precision components sector for consumer electronics.

On November 16, Wanxiang Technology Co., Ltd. (stock abbreviation "Wanxiang Technology," stock code "301180") was officially listed and began trading on the ChiNext Board of the Shenzhen Stock Exchange.

As of the day's close, Wanxiang Technology reported 37.33 yuan, up 205.98%, with an intraday price swing of 36.23%. Trading volume reached 1.053 billion yuan, while the turnover rate stood at 73.49%. The company's total market capitalization amounted to 14.932 billion yuan.

Wanxiang Technology has successfully gone public, which will accelerate the implementation of projects such as the production of micro lithium-ion batteries and precision components, while also boosting the company’s R&D and innovation capabilities. Primarily serving the consumer electronics industry, Wanxiang Technology has benefited from the robust growth and promising prospects in this sector over recent years. With this IPO, the company is poised to enter a new phase of expansion, supported by the strength of the capital market.

After nearly 20 years of development, Wanxiang Technology has steadily grown from a mold factory into a comprehensive manufacturer of precision components for consumer electronics, focusing on the R&D, production, and sales of cutting-edge consumer electronics parts.

Currently, Wanxiang Technology has established stable partnerships with renowned consumer electronics brands such as Apple, HP, Dell, Huawei, and Microsoft. Its products are widely used in mainstream consumer electronics, including laptops, tablets, smartphones, and smart wearable devices. As of the end of September 2021, the company’s total assets reached 1.338 billion yuan.

Through years of continuous innovation, Wanxiang Technology has mastered several core technologies in the field of precision component manufacturing, including advanced precision mold-making technology, in-mold robotic arm technology, and direct-injection, direct-pasting, one-step packaging technology. Meanwhile, by consistently refining process design, conducting rigorous process validation, and integrating automation solutions, the company has gradually achieved automated production for its key manufacturing processes. Additionally, the company is actively expanding its industrial chain further, independently developing miniature lithium-ion battery products that can be applied to small and ultra-compact smart devices such as wearable gadgets.

Wanxiang Technology Chairman Huang Jun stated: "At this stage, the company's first-generation micro lithium-ion battery products have undergone comprehensive testing, and their performance has reached mainstream market standards. As of the date the preliminary prospectus was signed, our wholly-owned subsidiary, Changzhou Weizhou, has already begun mass production and product delivery of these micro lithium-ion batteries."

As of now, Wanxiang Technology and its wholly-owned subsidiaries collectively hold 99 domestic patents, including 9 invention patents, 87 utility model patents, and 3 design patents; in addition, they have 3 international patents.

Wanxiang Technology, backed by its outstanding R&D and manufacturing capabilities, has been recognized as a "High-Tech Enterprise," the "Jiangsu Provincial Engineering Technology Research Center," a "Pilot Enterprise for the Integration of Informatization and Industrialization in Jiangsu Province," and the "Suzhou Municipal Enterprise Technology Center." It has also been included in Suzhou's "Gazelle Program" enterprise roster.

In recent years, with the rapid rise of emerging electronic products such as 5G smartphones, smart homes, the Internet of Things, mobile healthcare devices, and wearable tech, consumer demand for electronics has continued to grow—creating new opportunities for China's precision component manufacturing industry in the consumer electronics sector.

To seize the opportunities in industry development, Wanxiang Technology is raising a total of 488 million yuan this time, which will be allocated to a new project for manufacturing miniature lithium-ion batteries and precision components, an industrialization project for laptop computer exterior structural parts, an automated upgrade project for processing precision components in consumer electronics products, and to bolster working capital.

Looking ahead, Wanxiang Technology stated: "To further solidify our market position in the precision component manufacturing sector for consumer electronics and enhance our overall competitiveness, we plan to expand our industry presence and upgrade our manufacturing processes around core technologies. At the same time, we will strengthen comprehensive collaboration with our customers, deepening our partnerships and broadening our reach across various product categories—including consumer electronics, smart wearable devices, and power batteries—while building a robust precision manufacturing business spanning these key areas."

Thanks to the rising demand for laptops and the scale-effect brought about by the company's expanded production and sales, Wanxiang Technology expects its 2021 revenue to fall within the range of RMB 1.26 billion to RMB 1.54 billion, representing a year-on-year growth rate of 13.42% to 38.62%. Additionally, the company anticipates that its net profit attributable to shareholders of the parent company, after deducting non-recurring gains and losses, will reach between RMB 167 million and RMB 204 million in 2021, reflecting a significant increase of 76.73% to 116.01% compared to the same period last year.