Text: Li Li, Researcher at Quanheng Finance iqhcj

Edited by: Xu Hui

Guangdong Jinding Optical Technology Co., Ltd. (hereinafter referred to as "Jinding Optics") is planning to list on the Growth Enterprise Market (GEM), with China Investment Securities serving as its sponsor. The company aims to issue no more than 19,170,600 shares, accounting for at least 25.00% of the total share capital post-issuance. It intends to allocate RMB 758 million of the raised funds to the Precision Optical Equipment and Optical Product Intelligent Manufacturing Base Project, R&D Center Construction Project, Informatization Construction Project, and to supplement working capital (RMB 130 million).

On September 11, the People's Bank of China released Document Yin Fa Jue Zi [2026] No. 71 on its official website, revealing that China Investment Securities had been warned and fined RMB 818,000 for three violations. The penalty decision, made by the People's Bank of China on June 22, 2026, has a public announcement period of three years. According to the announcement, the violations by China Investment Securities include: 1. Failure to conduct customer due diligence as required; 2. Failure to report suspicious transactions as required; 3. Failure to conduct anti-money laundering risk assessments or establish corresponding risk management systems as required.

Jinding Optics is characterized by its relatively low stakes held by the actual controller and parties acting in concert, frequent equity changes, a gross profit margin for precision optical equipment that slightly surpasses the industry average (while margins for optical components and lenses fall short), R&D expenditure as a percentage of revenue below the comparable industry average, expansion funds that far exceed current production and sales volumes, a high customer concentration with gross profit heavily reliant on the top two clients, and discrepancies in purchasing and sales information with Yutong Optics.

Relatively Low Stakes Held by Actual Controller and Parties Acting in Concert, with Frequent Equity Changes

Jinding Limited was established in August 2011, with Jinx Property, Yushi Management, and Caijing Optoelectronics contributing RMB 7.05 million, RMB 6.75 million, and RMB 1.20 million, respectively, totaling RMB 15 million in paid-in capital, representing 47.00%, 45.00%, and 8.00% of the registered capital. In February 2016, Jinding Limited was transformed into a joint-stock company.

The controlling shareholder and actual controller of the company is Zhang Shengfeng. As of the prospectus signing date, Zhang Shengfeng directly held 9,862,893 shares, representing 17.15% and making him the largest shareholder. Zhang Shengfeng, Luo Shuijin, Dingsheng Partnership, and Dingli Partnership signed the on November 20, 2025, agreeing to act in concert in the company's management. Luo Shuijin, Dingsheng Partnership, and Dingli Partnership are parties acting in concert with the actual controller and are committed to maintaining a consistent relationship with the actual controller unconditionally to ensure stable company operations.

As of the prospectus signing date, Luo Shuijin directly held 4,319,693 shares, representing 7.51%; Dingsheng Partnership directly held 6,354,000 shares, representing 11.05%; Dingli Partnership directly held 599,000 shares, representing 1.04%. Zhang Shengfeng, through direct shareholding, indirect control, and concerted action, collectively controlled 36.75% of the voting rights in the company, making him the actual controller.

Quanheng Finance iqhcj noted that if the parties acting in concert reduce their shareholdings after the lock-up period expires or if the is not renewed upon expiration, leading to a decrease in the proportion of voting rights actually controlled by Zhang Shengfeng, there may be risks to the stability of the company's control, which could impact the company's production and operations.

On May 7, 2025, Jinding Optics issued 2,325,399 new shares. Dengling Tianshu subscribed for 852,273 shares at a total price of RMB 19.5 million, Junyi Digital subscribed for 874,126 shares at a total price of RMB 20 million, and Dingli Partnership subscribed for 599,000 shares at a total price of RMB 6.85256 million. The subscription price for Dengling Tianshu and Junyi Digital was RMB 22.88 per share; Dingli Partnership, as an employee shareholding platform, had a subscription price of RMB 11.44 per share. During the reporting periods, the company incurred expenses of RMB 4,200, RMB 255,800, and RMB 1.7314 million due to share-based payments.

On August 27, 2025, Jinding Optics appointed Liu Xiangmao as the new Board Secretary and Chief Financial Officer. Liu Xiangmao subscribed for 500,000 new shares at a total price of RMB 5.72 million, at a subscription price of RMB 11.44 per share. Liu Xiangmao worked at Essence Securities from July 2008 to June 2019, serving in various roles in the Investment Banking Department. From July 2019 to July 2025, he worked at Guotai Haitong Securities, also in the Investment Banking Department.

On November 4, 2025, the company's former shareholder Zhai Pingxian signed with several parties, transferring 2 million shares of Jinding Optics at a price of RMB 22.88 per share, with a total transfer price of RMB 45.759997 million. Zhai Pingxian chose to liquidate her holdings on the eve of the company's IPO.

Gross Profit Margin for Precision Optical Equipment Slightly Exceeds Industry Average, While Margins for Optical Components and Lenses Fall Short

Jinding Optics is primarily engaged in the R&D, production, and sales of precision optical high-end equipment, optical lenses, and precision optical components, generating revenue and profits by providing these products to downstream customers. From 2023 to 2025, the company's operating revenue was RMB 144.1 million, RMB 201.1 million, and RMB 340.9 million, with increases of 39.56% and 69.51%, respectively; net profit was RMB 27.9418 million, RMB 42.0095 million, and RMB 83.2064 million, with increases of 50.34% and 98.06%, respectively, indicating rapid growth in the company's performance.

During the reporting periods, the company's precision optical processing equipment generated revenue of RMB 113.8 million, RMB 152.5 million, and RMB 266.8 million, representing 79.39%, 76.27%, and 78.84% of the main business revenue, respectively, serving as the primary revenue source, with a generally increasing trend in revenue scale. The continuous expansion of downstream optical market demand and the broadening of application scenarios for end products have steadily expanded the company's customer base. Relying on the continuous improvement of product model systems and the increasing diversity of product categories, the revenue from glass aspheric precision molding machines and related equipment products has steadily increased, driving the revenue growth from precision cold processing equipment, other optical equipment, and ultra-precision processing equipment.

During the reporting periods, the company's optical components and optical lens business generated revenue of RMB 29.5467 million, RMB 47.4529 million, and RMB 71.6096 million, representing 20.61%, 23.73%, and 21.16% of the main business revenue, respectively, with a generally steady increase in revenue scale.

During the reporting periods, Jinding Optics' comprehensive gross profit margin was 36.27%, 39.32%, and 42.28%, showing an overall upward trend, primarily due to the increase in the gross profit margin of the company's main business.

During the reporting periods, the average comprehensive gross profit margins for precision optical equipment of listed companies in the same industry, such as MeiYa Photoelectricity, Sitai Ke, Di'er Laser, and Delong Laser, were 50.04%, 48.20%, and 48.25%, respectively, maintaining a high range of 48%-51%, reflecting the industry characteristics of high technical barriers, prominent product added value, and sufficient profit margins in the high-end optical equipment industry.

During the reporting periods, the company's gross profit margins for optical components and lenses were -8.45%, -2.28%, and -1.21%, respectively, lower than the average of listed companies in the same industry. The main reasons are that the company's business scale and production process levels for optical components and optical lenses still lag behind those of listed companies in the same industry, with lower product yields than peers, resulting in negative gross profit margins for the company's optical components and optical lens business, which are lower than those of listed companies in the same industry.

R&D Expenditure as a Percentage of Revenue Below Comparable Industry Average, Expansion Funds Far Exceed Current Production and Sales Volumes

As of the end of each reporting period, Jinding Optics had 183, 283, and 420 employees, respectively. As of the end of 2025, among the 420 employees, 250 had education levels below junior college. During the reporting periods, Jinding Optics' R&D expenditure ratios were 8.54%, 7.51%, and 6.27%, respectively, while the average R&D expenditure ratios of listed companies in the same industry were 10.19%, 11.20%, and 10.17%, respectively, with the company's R&D expenditure ratio being lower than that of listed companies in the same industry.

Jinding Optics outsources some low-value-added processes for certain products, such as milling, grinding, and polishing. The company strictly controls the quality of outsourced processing to ensure it meets product design requirements and customer needs. During the reporting periods, the company's outsourced processing fees were RMB 8.1964 million, RMB 9.2314 million, and RMB 11.3274 million, respectively, with a relatively small overall scale of outsourced processing.

The company's precision optical equipment products are produced in-house, while its optical components and optical lenses are primarily produced under OEM arrangements, with a small amount produced under ODM arrangements. The company's lens and optical component products are mainly produced under OEM/ODM arrangements, under which the company has formed long-term cooperative relationships with some domestic mainstream lens manufacturers. After receiving customer orders, the company implements the production of optical lenses and optical component products based on the customer's design or product requirements.

The concept of designed production capacity does not apply to the company's products. During the reporting periods, the production and sales volumes of the company's main equipment products, as well as the production and sales volumes of its optical lenses and optical lens products, are shown in the figures below:

According to the environmental impact assessment report for the fundraising and expansion project, the expected production capacity from the company's fundraising and expansion is 15.8 million sets of precision lenses, lens blanks, and AR products annually and 1,440 sets of intelligent precision equipment annually. These production capacities far exceed the current corresponding production and sales volumes, raising significant doubts about how the additional capacity will be absorbed.

High Customer Concentration, with Gross Profit Heavily Reliant on the Top Two Clients, and Discrepancies in Purchasing and Sales Information with Yutong Optics

The terminal applications of Jinding Optics' products include emerging visual intelligence application fields such as intelligent driving, consumer electronics, smart cities, robots, machine vision, and optical communications. Affected by multiple factors, including the high concentration of the downstream optical camera manufacturer industry, the cyclical nature of customer fixed asset investments, and the company's priority in meeting large customer order demands, the company's customer concentration remains high.

During the reporting periods, the sales revenue from the company's top five customers accounted for 82.71%, 83.76%, and 85.50% of the operating revenue, respectively. Among them, the revenue from Yutong Optics was RMB 48.3599 million, RMB 91.1825 million, and RMB 189.2 million, representing 33.56%, 45.33%, and 55.51% of the company's revenue, respectively. During the reporting periods, the sales gross profit contributions from major customers Yutong Optics and Lianchuang Electronics exceeded 70%.

Reviewing Yutong Optics' 2025 annual report data, among the disclosed top five suppliers, the fourth largest supplier was Shangrao Caijun Optical Instrument Co., Ltd. and its affiliates, with a procurement amount of RMB 193.62 million, representing 7.15%, and the fourth largest supplier was Dongguan Jingchen Optics Co., Ltd., with a procurement amount of RMB 124.3 million, representing 4.59%. There was no mention of Jinding Optics' RMB 189.2 million, indicating discrepancies in purchasing and sales information and conflicting disclosures, leaving it unclear which figures should be considered accurate.

As of the end of each reporting period, the company's accounts receivable balances were RMB 28.1412 million, RMB 75.7829 million, and RMB 136.2 million, representing 19.53%, 37.68%, and 39.96% of the current operating revenue, respectively.

As of the end of each reporting period, the book value of the company's inventory was RMB 43.7993 million, RMB 82.7365 million, and RMB 194.4 million, representing 26.81%, 26.88%, and 29.20% of the total assets, respectively, with a relatively high proportion. As of the end of each reporting period, the company's inventory write-downs were RMB 5.7894 million, RMB 6.8211 million, and RMB 6.8498 million, respectively.

Under the registration-based Initial Public Offering (IPO) system, companies planning to go public must place greater emphasis on the quality of their information disclosure. They need to carefully assess whether their operational indicators align with the listing requirements and evaluate their capacity for sustained operations in the long run. Given the constraints of space, Quanheng Finance iqhcj is unable to delve into every issue individually. The insights presented in this article are gleaned from various information sources and are intended to serve as a cautionary note from Quanheng Finance iqhcj to stakeholders and investors. They highlight enterprise risks that merit attention but should not be regarded as an exhaustive guide. It is strongly recommended that investors thoroughly review the complete prospectus of the IPO company before making any investment decisions.