Jinding Optics ChiNext IPO: Frequent Equity Changes and Customer Concentration

Text: Li Li, researcher at Hengqiancai IQHCJ

Editor: Xu Hui

Guangdong Jinding Optical Technology Co., Ltd. (Jinding Optics) plans to list on the ChiNext board, with SDIC Securities as the sponsor. It will issue no more than 19.1706 million shares, representing at least 25.00% of the company's total share capital after the offering. The company plans to use 758 million yuan of the proceeds for a precision optical equipment and optical products intelligent manufacturing base project, an R&D center construction project, an informatization project, and working capital replenishment (130 million yuan).

On September 11, the central bank published document No. 71 of 2026 on its website. The disclosure shows that SDIC Securities was warned and fined 818,000 yuan for three violations. The penalty decision was made by the central bank on June 22, 2026, with a disclosure period of three years. According to the disclosure details, SDIC Securities' violations included: 1. failing to conduct customer due diligence as required; 2. failing to report suspicious transactions as required; 3. failing to conduct money laundering risk assessments or establish sound corresponding risk management systems as required.

The actual controller and persons acting in concert hold relatively low stakes, with frequent equity changes; gross margins for precision optical equipment are slightly above the peer average, while gross margins for optical components and lenses fall below the peer average; the R&D ratio is below the comparable peer average, and the capacity expansion funded by the offering far exceeds current production and sales; customer concentration is high, gross profit depends heavily on the top two customers, and purchase and sales disclosures conflict with those of Yutong Optics.

Actual controller and persons acting in concert hold relatively low stakes, with frequent equity changes

Jinding Co., Ltd. was established in August 2011. Jindi Property, Yushi Management, and Caijing Optoelectronics contributed 7.05 million yuan, 6.75 million yuan, and 1.20 million yuan respectively in cash, for a total paid-in capital of 15.00 million yuan, representing 47.00%, 45.00%, and 8.00% of the registered capital, respectively. In February 2016, Jinding Co., Ltd. was converted in its entirety into a joint-stock company.

The company's controlling shareholder and actual controller is Zhang Shengfeng. As of the date of signing of the prospectus, Zhang Shengfeng directly held 9.862893 million shares of the company, representing 17.15%, making him the company's largest shareholder. Zhang Shengfeng, Luo Shuijin, Dingsheng Partnership, and Dingli Partnership entered into a Concert Party Agreement on November 20, 2025, under which the parties agreed to act in concert at the level of the company's operations and management. Luo Shuijin, Dingsheng Partnership, and Dingli Partnership are concert parties of the company's actual controller and, to maintain the stability of the company's operations, are willing to maintain a concert party relationship with the actual controller unconditionally.

As of the date of signing of the prospectus, Luo Shuijin directly held 4.319693 million shares of the company, representing 7.51%; Dingsheng Partnership directly held 6.354 million shares, representing 11.05%; and Dingli Partnership directly held 599,000 shares, representing 1.04%. Through direct shareholding, indirect control, and the concert party relationship, Zhang Shengfeng controls voting rights over 36.75% of the company's shares in aggregate and is the company's actual controller.

Quanheng Finance IQHCJ notes that if the concert parties sell down their shareholdings after the lock-up period expires, or if the Concert Party Agreement is not renewed upon expiry, causing the proportion of voting rights actually controlled by Zhang Shengfeng to decline, the stability of the company's control may be subject to certain risks, which could have a certain impact on the company's production and operations.

On May 7, 2025, Jinding Optics issued 2.325399 million new shares, subscribed for by Dengling Tianshu (852,273 shares for a total consideration of 19.50 million yuan), Junyi Digital (874,126 shares for a total consideration of 20.00 million yuan), and Dingli Partnership (599,000 shares for a total consideration of 6.85256 million yuan). The subscription price for Dengling Tianshu and Junyi Digital in this issuance was 22.88 yuan per share; Dingli Partnership is an employee shareholding platform, and its subscription price in this issuance was 11.44 yuan per share. For each period during the reporting period, the company's share-based payment expenses were 4,200 yuan, 255,800 yuan, and 1.7314 million yuan, respectively.

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 consideration of 5.72 million yuan, at a subscription price of 11.44 yuan per share. From July 2008 to June 2019, he held successive positions at Essence Securities in the investment banking division, including analyst, project manager, business vice president, and business director. From July 2019 to July 2025, he held successive positions at Guotai Haitong Securities in the investment banking division, including business director and executive director.

On November 4, 2025, the company's former shareholder Zhai Pingxian signed Share Transfer Agreements with Zeng Lijun, Du Xiaofeng, Zhang Zhirui, Yang Daiqun, Wan Jun, Chen Wenmo, Xu Wanlin, Zhang Jiejie, Yu Xiaoping, and the Wan Ce partnership. Zhai Pingxian transferred 2 million shares of Jinding Optics held by her to the above parties at a price of RMB 22.88 per share, for a total transfer consideration of RMB 45.759997 million. Zhai Pingxian opted for a full exit on the eve of the company's IPO.

Precision optical equipment gross margin slightly exceeds the peer average, while optical components and lenses fall short

Jinding Optics is mainly engaged in the R&D, production and sales of high-end precision optical equipment, optical lenses and precision optical components, generating revenue and profit by supplying equipment, optical lenses and components 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, representing growth of 39.56% and 69.51%, respectively. Net profit was RMB 27.9418 million, RMB 42.0095 million and RMB 83.2064 million, representing growth of 50.34% and 98.06%, respectively, indicating relatively rapid performance growth.

In each period under review, the company's precision optical processing equipment generated revenue of RMB 113.8 million, RMB 152.5 million and RMB 266.8 million, accounting for 79.39%, 76.27% and 78.84% of revenue from principal operations, respectively. This was the company's main source of revenue, with the overall revenue scale showing a sustained upward trend. As downstream optical market demand continued to expand and application scenarios for end products kept broadening, the company steadily expanded its customer base. Supported by a continuously improving product model portfolio and an increasingly rich product range, revenue from glass aspheric precision molding presses and related equipment grew steadily, while also driving revenue growth in precision cold-processing equipment, other optical equipment and ultra-precision processing equipment.

In each period under review, the company's optical components and optical lenses business generated revenue of RMB 29.5467 million, RMB 47.4529 million and RMB 71.6096 million, accounting for 20.61%, 23.73% and 21.16% of revenue from principal operations, respectively, with the overall revenue scale showing a steady upward trend.

During the reporting period, Jinding Optics' overall gross margin was 36.27%, 39.32% and 42.28%, showing a general upward trend, mainly due to an increase in the gross margin of its principal operations.

During the reporting period, listed industry peers Meiya Optoelectronics, SITAC, DR Laser and Delphi Laser recorded average gross margins for precision optical equipment of 50.04%, 48.20% and 48.25%, respectively, remaining broadly stable at a high level of 48%-51%. This reflects the high-end optical equipment industry's characteristically high technical barriers, strong product value added and ample profitability.

During the reporting period, the gross margins of the company's optical components and lenses were -8.45%, -2.28% and -1.21%, respectively, below the average of listed industry peers. The main reasons are that the company still lags behind listed peers in the scale of its optical components and lens business and in production process capabilities, and its product yield is lower than that of listed peers. As a result, the gross margin of the company's optical components and lens business is negative and below the industry average.

R&D ratio trails comparable peers' average, while fundraising expansion far exceeds current production and sales

At the end of each reporting period, Jinding Optics had 183, 283 and 420 employees, respectively. At the end of 2025, 250 of the company's 420 employees had an education level below junior college. During the reporting periods, Jinding Optics' R&D expense ratios were 8.54%, 7.51% and 6.27%, respectively, compared with averages of 10.19%, 11.20% and 10.17% for listed industry peers. The company's R&D expense ratio was below that of listed peers.

Jinding Optics outsources certain lower-value-added processes for some products, including milling and grinding, fine grinding and polishing. The company strictly controls the quality of outsourced processing to ensure that it meets product design requirements and customer needs. During the reporting period, outsourced processing costs were RMB 8.1964 million, RMB 9.2314 million and RMB 11.3274 million, respectively, indicating a relatively small overall scale of outsourced processing.

The company manufactures its precision optical equipment products in-house. Its optical components and lenses are produced mainly under an OEM model, with a small portion under ODM. Under the OEM/ODM model, the company has established long-term partnerships with a number of mainstream domestic lens manufacturers. Upon receiving customer orders, the company produces optical lenses and optical components in line with the customer's design specifications or product requirements.

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

According to the environmental impact assessment report for the fund-raising projects, the expected capacity from this expansion is 15.8 million sets of precision lenses, lens assemblies and AR products per year, and 1,440 units (sets) of intelligent precision equipment per year. These capacities far exceed current output and sales, raising significant questions about how the additional capacity will be absorbed.

High customer concentration, gross margin reliant on top two, and disclosure conflict with Yutong Optics over mismatched purchases and sales

Jinding Optics' products are ultimately used in emerging vision-intelligence applications such as intelligent driving, consumer electronics, smart cities, robotics, machine vision and optical communications. Owing to the high concentration of the downstream optical camera module industry, the cyclical nature of customers' fixed-asset investment, and the company's priority in meeting large customers' order needs, among other factors, the company's customer concentration has remained at a high level.

In each period of the reporting period, revenue from the company's top five customers accounted for 82.71%, 83.76% and 85.50% of operating revenue, respectively. Of these, 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 period, major customers Yutong Optics and Lianchuang Electronics contributed more than 70% of gross profit from sales.

A review of Yutong Optics' 2025 annual report shows that among its disclosed top five suppliers, the fourth-largest supplier was Shangrao Caijun Optical Instruments Co., Ltd. and its related parties, with purchases of RMB 193.62 million, accounting for 7.15%; the fourth-largest supplier was Dongguan Jingchen Optics Co., Ltd., with purchases of RMB 124.3 million, accounting for 4.59%. Neither matches Jinding Optics' RMB 189.2 million, creating a mismatch between purchases and sales and a disclosure conflict, leaving it unclear which figure should be taken as authoritative.

At 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, respectively, representing 19.53%, 37.68%, and 39.96% of revenue for the respective periods.

At the end of each reporting period, the carrying value of the company's inventories was RMB 43.7993 million, RMB 82.7365 million, and RMB 194.4 million, respectively, accounting for 26.81%, 26.88%, and 29.20% of total assets, a relatively high proportion. At the end of each reporting period, inventory write-down provisions were RMB 5.7894 million, RMB 6.8211 million, and RMB 6.8498 million, respectively.

Under the registration-based IPO system, IPO applicants should pay greater attention to disclosure quality, whether their operating metrics meet listing requirements, and their subsequent sustainable operations. Given space constraints, Quanheng Caijing iqhcj cannot identify every issue one by one. This article is based entirely on source materials and is intended only to alert investors and other stakeholders to corporate risks that deserve closer attention; it is not a comprehensive reference. Investors are advised to review the IPO applicant's complete prospectus before making decisions.

       Original title : Jinding Optics sees frequent equity changes and customer concentration, with purchase and sales discrepancies with Yutong Optics