Chengdu Hongming Electronics Co.,Ltd. is primarily engaged in the research, development, production, and sales of new electronic components and precision parts, with a focus on resistive and capacitive components.
Chengdu Hongming Electronics (Stock Code: 301682) was listed on the ChiNext Board on March 25, 2026. The company publicly issued 30,387,340 new shares at an issue price of 69.66 yuan per share, raising a total of 2.117 billion yuan. Following the issuance, the total share capital reached 121,549,358 shares.
The company's core business involves the R&D, production, and sales of new electronic components, mainly resistive and capacitive components. In the 2024 fiscal year, the company reported operating revenue of 2.494 billion yuan and a net profit of 268.2429 million yuan.
**Listing Details** According to the company's listing announcement, its shares officially commenced trading on the ChiNext Board of the Shenzhen Stock Exchange on March 25, 2026. The shares are traded under the abbreviation "Hongming Electronics" with the stock code 301682.
**Issue Pricing and P/E Ratio** The issue price was set at 69.66 yuan per share. This price corresponds to a diluted price-to-earnings ratio of 33.61 times, based on the lower of the company's 2024 net profit attributable to parent company shareholders before or after extraordinary items. This P/E ratio attracted significant market attention as it was notably lower than the industry average at the time. As of March 10, 2026, the average static P/E ratio for the "Computer, Communication, and Other Electronic Equipment Manufacturing (C39)" sector, as published by China Securities Index Co., Ltd., was 65.16 times for the recent month. The average static P/E ratio for comparable listed companies in the same industry, excluding outliers, was even higher at 74.90 times.
**Use of Proceeds** The total funds raised from the public offering amounted to 2,116.7821 million yuan. After deducting issuance expenses, the net proceeds were 2,037.6347 million yuan. According to the prospectus, these funds will be allocated to core strategic areas, including the industrial construction project for high-energy-storage pulse capacitors, the production project for new electronic components and integrated circuits (Phase I/II), the precision parts capability enhancement project, a cluster of R&D projects, digital capability improvements, and supplementing working capital.
**Core Business Operations** The company's primary business is clearly structured around new electronic components, supported by synergistic development in precision parts. Its main product portfolio includes high-reliability multilayer ceramic capacitors (MLCC), precision displacement sensors and resistor potentiometers, power filters, and electromagnetic compatibility components. These products are critical in electronic systems and are widely used in national key projects in aerospace, aviation, electronics, shipbuilding, and the nuclear industry. High-reliability products form the pillar of its electronic components business, accounting for an average of 89.41% of sales in this segment during the reporting period, with ceramic capacitors being the dominant category.
The precision parts business primarily serves the civilian market, with applications in consumer electronics like tablets and laptops, as well as in fast-growing sectors such as new energy batteries and automotive electronic structural components. This business complements the core components operations and helps diversify market risks.
**Financial Performance** The company's financial performance has shown some volatility in recent years, attributed to the planned and cyclical nature of its defense industry sector. From 2022 to 2024, operating revenue was 3,146.0857 million yuan, 2,726.5692 million yuan, and 2,493.8290 million yuan, respectively. Net profit attributable to parent company shareholders for the same periods was 475.5172 million yuan, 411.6711 million yuan, and 268.2429 million yuan. The declines in 2023 and 2024 were partly due to downstream customers implementing stricter cost controls, leading to price reductions for high-reliability products.
However, a review report for 2025 indicates a performance recovery. The company achieved operating revenue of 2,616.6646 million yuan and a net profit attributable to parent company shareholders of 318.7220 million yuan in 2025, representing a rebound from 2024.
**Human Capital Efficiency** In 2024, the company had 3,265 employees, including 781 R&D personnel, accounting for 23.92% of the total workforce. Revenue per employee was 746,400 yuan, and profit per employee was 115,500 yuan, reflecting relatively healthy operational efficiency.
**Shareholding Structure** The controlling shareholder is Sichuan Investment Information Industry Group Co., Ltd. (Chuantou Xincan). Prior to the issuance, it held a 56.50% stake. Post-issuance, its shareholding was diluted to 42.38%, but it remains the largest and controlling shareholder. The ultimate controller is the State-owned Assets Supervision and Administration Commission of Sichuan Province.
**Key Management** Chairman Liang Tao (born 1982) holds a Ph.D. in Microelectronics and Solid-State Electronics and is a senior engineer. He was appointed Chairman in April 2025. General Manager Liu Zunshu (born 1965) is a veteran of the company, having joined its predecessor in 1988. Board Secretary Liang Shuang (born 1986) holds a Ph.D. and played a core role in the IPO process. CFO Ouyang Zhengkai (born 1972) has extensive experience in financial management for listed companies. The board also includes independent directors who provide professional oversight.
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