Jadeli IPO: The actual controller holds nearly 96% of voting rights, and institutional investors were introduced during the guidance period.

On March 13, Quanzhou Jiade Li Electronic Materials Co., Ltd. (Jiade Li) successfully listed on the main board of the Shanghai Stock Exchange, with GF Securities as the sponsor.

Jiade Li mainly engages in the research, development, production, and sales of BOPP electrical insulation films. Its core products can be divided into two categories: capacitor films and composite copper foil substrates. The former are used in film capacitors and are terminal applications in new energy vehicles, renewable energy, flexible transmission and transformation, industrial control, and rail transit. The latter are used in lithium batteries and anode composite current collectors.

According to quick summaries, Jiade Li was established in May 2002. It completed a shareholding reform in March 2024, started counseling record filing in December, and completed counseling in October 2025. In November, its application for listing on the Shanghai Stock Exchange main board was accepted. After two rounds of inquiries, it has now gone through the review meeting.

Huang Zezhong and Huang Yanhuang hold nearly 96% of voting rights. The controlling shareholders and actual controllers of Jiade Li are Huang Zezhong and Huang Yanhuang, each holding 47.94%, with a combined stake of 95.89%, giving them absolute control over the company. The two are in a joint action relationship, valid for 72 months from the date of signing until listing, with the possibility of renewal. When there are disagreements on relevant proposals, the proposing party should make appropriate concessions until both sides reach consensus. If consensus cannot be reached, Huang Zezhong’s opinion shall prevail.

Huang Zezhong was born in 1987, with a bachelor’s degree. From November 2008 to March 2024, he served as the company’s sales director, director, deputy general manager, and general manager. Since March 2024, he has been a director and general manager of the company.

Huang Yanhuang was born in 1985, with a high school education. From January 2007 to January 2021, he was responsible for the East China Power Production Department. From February 2012 to March 2024, he served as head of the company’s Equipment and Engineering Department, director, and deputy general manager. Since March 2024, he has been chairman and deputy general manager.

Huang Zezhong and Huang Yanhuang hold nearly 96% of voting rights, and measures are in place to prevent risks of improper control by the actual controllers. Jiade Li states that when the interests of the company conflict with those of the actual controllers, if the internal control system fails to function effectively, or if the controllers improperly use shareholder voting rights or other means to divert company funds, conduct related-party transactions for benefit transfer, or improperly influence major decisions such as operations, personnel appointments, investment directions, profit distribution, and information disclosure, it could impact the company’s business operations and harm the rights of small and medium investors.

During the counseling period, institutional investors were introduced. In June 2025, Jiade Li initiated a capital increase at a price of 8.83 yuan per share. Fuchuang Venture Capital, Jiaokong Jingshi, Jinyuan Zhanhong, and China Merchants Cultural Tourism (investment institutions) contributed 70 million yuan, 30 million yuan, 30 million yuan, and 20 million yuan respectively, holding stakes of 1.92%, 0.82%, 0.82%, and 0.55%.

The company states that the main reason for the capital increase is the phased need for expansion funds and that introducing professional institutional investors can improve corporate governance. However, from 2022 to the first half of 2025, the company’s asset-liability ratio was relatively low, at 17.55%, 15.04%, 15.72%, and 12.64%, respectively. In 2024, the company’s monetary funds and trading financial assets were 112 million yuan and 70 million yuan, respectively, with short-term loans of only 50 million yuan, indicating ample funds and low short-term debt pressure. Under these circumstances, is it necessary to introduce investment institutions during the counseling record filing period?

It should be noted that Huang Zezhong and Huang Yanhuang signed betting agreements with the above investment institutions, including repurchase rights, preemptive purchase rights and co-sale rights, anti-dilution clauses, priority liquidation rights, and preferential terms. These agreements were terminated when the company’s application for listing on the Shanghai Stock Exchange was accepted. However, if the company’s listing is rejected or the A-share listing is not completed before December 31, 2028, the investors still retain the right to repurchase.

There are also issues of fund disbursement and personal card payments. In 2023, Jiade Li lent 7 million yuan to related party East China Power for temporary liquidity needs. The loan and interest were recovered within the same year. The company states that the loan followed necessary approval procedures and did not harm the interests of the issuer.

Additionally, in 2022 and 2023, the company engaged in using personal cards to collect sales payments for regranulation, amounting to 1.2275 million yuan and 396,400 yuan respectively. These funds were mainly used for employee salaries and other expenses. The related issues were rectified by October 2023.