Five-Star New Materials IPO Accepted, Revenue and Net Profit Both Decline in 2024

Ask AI · What potential factors lie behind Wuxing New Materials’ double decline in 2024 revenue and net profit?

According to a notice from the Shenzhen Stock Exchange, on March 27, Henan Wuxing New Materials Technology Co., Ltd. (referred to as “Wuxing New Materials”) had its IPO application accepted.

According to the prospectus, Wuxing New Materials plans to raise RMB 713 million. Of this amount, RMB 490 million will be used for the construction project of an annual output of 20k tons of ultra-fine structured isotropic high-purity graphite, RMB 150 million will be used to supplement working capital, and RMB 49 million will be used for the R&D center upgrade project.

The main business of Wuxing New Materials is the research, production, and sales of high-purity graphite materials and products with fine-structure isostatic pressing within special graphite. It is one of the few companies in China that has end-to-end production capability for high-purity isostatic-pressed graphite across the entire industrial chain. Since its establishment in 2007, the company has been devoted to research and technological innovation related to high-purity isostatic-pressed graphite, and it has full-process production capabilities covering all steps, including milling, mixing, forming, graphitization, impregnation, and deep processing.

Data show that from 2022 to 2025 (January to September), Wuxing New Materials’ revenue was RMB 20k, RMB 1.27B, RMB 1.77B, and RMB 791 million, while net profit was RMB 457 million, RMB 714 million, RMB 422 million, and RMB 179 million.