--- title: "Jia De Li relies on \"a membrane\" to earn 700 million annually, with the Fujian cousins holding 95% of the shares backed by family IPO" type: "News" locale: "en" url: "https://longbridge.com/en/news/278986158.md" description: "JiaDeLi Electronic Materials Co., Ltd. focuses on the research, development, production, and sales of BOPP electrical films and is expected to conduct an IPO on the Shanghai Stock Exchange. The company derives 95% of its revenue from a single product, BOPP electrical films, which are primarily used in film capacitors and lithium batteries. The funds from the IPO will be used to establish a new production base and supplement working capital to address capacity bottlenecks and optimize the financial structure" datetime: "2026-03-13T04:59:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278986158.md) - [en](https://longbridge.com/en/news/278986158.md) - [zh-HK](https://longbridge.com/zh-HK/news/278986158.md) --- # Jia De Li relies on "a membrane" to earn 700 million annually, with the Fujian cousins holding 95% of the shares backed by family IPO Nearly 95% of revenue relies on a single product. Author｜Zhuoma Editor｜Liu Qinwen The stories of wealth creation in the new energy sector are endless, but you might not expect that a "film" in electric vehicles could be enough to achieve an IPO. **With the explosion of industries such as new energy vehicles, wind power, and photovoltaics, the demand for BOPP electrical film (biaxially oriented polypropylene film) has surged, quietly ushering in a capital feast for this niche market.** Quanzhou Jiadeli Electronic Materials Co., Ltd. (hereinafter referred to as "Jiadeli", A25069.SH) is a company focused on the research, production, and sales of BOPP electrical film. **On March 13, the company will face a "big test" at the Shanghai Stock Exchange for its IPO review.** The prospectus shows that for this IPO, **Jiadeli plans to use the raised funds for the "construction of a new materials production base in Xiamen (Phase I)" and "supplementing working capital."** Jiadeli stated that the products produced at the new production base are the company's existing main products, which will help solve the current capacity bottleneck and meet customer demand, while supplementing working capital will help optimize the company's financial structure. **01** **The price of the product contributing nearly 95% of revenue has declined,** **Raw materials and production equipment rely on imports** **BOPP electrical film is a film made from polypropylene resin through a special stretching process.** Its characteristics include **self-repairing small damages, high pressure resistance, uniform thickness, low energy loss, and lightweight, known in the industry as "base film."** Based on these qualities, BOPP electrical film can be used as the core material for film capacitors and as a composite copper foil base film in lithium batteries. Among them, film capacitors are one of the main types of capacitors in the new energy field. They act like a small "energy storage device," with BOPP electrical film separating the two electrodes, allowing for charge storage. **The quality of the electrical film directly determines the stability of the capacitor's capacity and its lifespan.** Additionally, BOPP electrical film can also be placed in the negative electrode of lithium batteries, **making the batteries safer and cheaper, representing an important new direction for lithium battery development.** The prospectus shows that **Jiadeli focuses on the research, production, and sales of BOPP electrical film, which is the company's main product and primary source of revenue.** In the years 2022—2024 and the first half of 2025 (hereinafter referred to as "each period"), Jiadeli's BOPP electrical film products achieved revenues of 522 million yuan, 497 million yuan, 689 million yuan, and 349 million yuan, accounting for 94.88%, 94.12%, 94.65%, and 94.91% of the main business revenue, respectively. **The company admits that its product structure is relatively single, posing risks in responding to macroeconomic changes and industry demand fluctuations.** According to different thicknesses, **the BOPP electrical film produced by Jiade Li can be divided into three categories: ultra-thin film, thin film, and medium-thick film.** Among them, **ultra-thin film and thin film are currently mainly used in fields such as new energy vehicles and renewable energy, while medium-thick film is mainly used in industrial control and other fields.** Source: "Prospectus" The "Prospectus" shows that **the production process of ultra-thin film has higher requirements, and only a few manufacturers in the industry can stably produce ultra-thin film.** In recent years, **Jiade Li's revenue and proportion from ultra-thin film have shown an upward trend,** achieving revenues of 238 million yuan, 218 million yuan, 326 million yuan, and 183 million yuan in each period, with proportions in main business revenue of 43.25%, 41.37%, 44.78%, and 49.67%, respectively. **The company attributes the growth of ultra-thin film performance to the strong demand for ultra-thin film driven by the high prosperity of the new energy vehicle market and the demand for technological upgrades.** However, **the average selling price of Jiade Li's BOPP electrical film has shown an overall downward trend in recent years,** with average selling prices of 53,300 yuan/ton, 49,700 yuan/ton, 48,800 yuan/ton, and 50,000 yuan/ton in each period. The company stated that this is **due to the market price adjustment of the main raw material polypropylene, and as new production lines of domestic base film manufacturers are gradually put into production, the supply of thin film and medium-thick film has increased, alleviating the tight supply situation of base film,** which has led to a decrease in base film market prices. In addition to BOPP electrical film, **Jiade Li's products also include re-granulation, which is made from the edge scraps and defective products during the production process of BOPP electrical film after recycling and processing into regenerated particles, serving as a by-product of the BOPP electrical film production process.** The company achieved revenues from re-granulation of 28.1741 million yuan, 31.0038 million yuan, 38.9594 million yuan, and 18.6931 million yuan in each period, accounting for 5.12%, 5.88%, 5.35%, and 5.09% of the main business revenue, respectively. With the joint efforts of various products, Jiade Li has developed well in recent years, achieving revenues of 550 million yuan, 528 million yuan, 734 million yuan, and 367 million yuan from 2022 to 2024 and the first half of 2025, with net profits attributable to the parent company of 192 million yuan, 141 million yuan, 238 million yuan, and 125 million yuan, respectively. According to statistics from the China Electronic Components Industry Association, **Jiade Li ranked second globally and first domestically in sales of polypropylene film for capacitors in 2024, with market shares of 11.7% and 16.4% in the global and domestic markets, respectively.** In addition, Jiade Li also released its performance for 2025 in the "Prospectus," with the company achieving revenues of 757 million yuan for the year, a year-on-year increase of 3.18%; Achieving a net profit attributable to the parent company of 244 million yuan, a year-on-year increase of 2.35%. **The company attributes its performance growth to the continued improvement in sales of BOPP electrical films and the increase in BOPP electrical film sales due to the commissioning of new production lines.** Source: "Prospectus" In addition to maintaining growth in performance, Jiade Li's gross profit margins in various periods are also relatively high, with comprehensive gross profit margins of 49.29%, 41.82%, 46.1%, and 48.79%, **all higher than the average levels of comparable companies in the same industry during the same period, which are 41.31%, 33.22%, 32.88%, and 36.85%.** In this regard, **Jiade Li claims it is due to the insufficient supply in the domestic ultra-thin film market, the company's product structure being primarily composed of ultra-thin films with significant performance advantages, and the company's leading production efficiency and cost control levels.** In fact, Jiade Li's gross profit margin levels are influenced by various factors such as raw material costs, product prices, market demand, and market competition patterns, **among which changes in raw material costs and product prices are the main influencing factors.** Source: Canned Image Library It is worth noting that **Jiade Li's raw materials are highly dependent on overseas imports.** The "Prospectus" shows that the main raw material required for Jiade Li to produce BOPP electrical films is electrical-grade polypropylene resin, which accounts for about 70%-80% of the base film cost. Electrical-grade polypropylene resin is a petrochemical product, but the current level of domestic production is relatively low. **Currently, domestic BOPP electrical film-grade polypropylene resin is largely dependent on imports, mainly from Borealis, Hanwha Total, and TPC in Singapore.** Currently, **Jiade Li mainly procures polypropylene resin from Borealis and purchases a small amount of domestic polypropylene resin for trial production.** Borealis is a global leading petrochemical company headquartered in Abu Dhabi, UAE, and is Jiade Li's largest supplier in various periods, with the company purchasing polypropylene resin from it for 248 million yuan, 238 million yuan, 280 million yuan, and 114 million yuan, **accounting for 96.62%, 95.54%, 90.74%, and 92.08% of the procurement amount for this raw material, respectively.** Source: "Prospectus" In addition to relying on a single supplier for raw material procurement, **JiaDeLi's production equipment is also highly dependent on a single supplier.** The "Prospectus" shows that the manufacturing process for BOPP electrical film production equipment is relatively complex, with only a few manufacturers globally, such as Germany's Bruckner, Germany's Lindauer Dornier, and France's Machin, supplying this equipment. As of now, **all 8 BOPP electrical film production lines that JiaDeLi has put into operation, as well as the 3 BOPP electrical film production lines under construction, have been procured from Germany's Bruckner.** The company claims that both parties have formed a high degree of compatibility and established a long-term, stable cooperative relationship. However, JiaDeLi also acknowledges that **if international trade frictions escalate in the future, leading to restrictive trade policies from the countries where the production equipment suppliers are located, the company may face difficulties in procuring related production equipment or delays in equipment delivery, which could adversely affect the company's future operations.** **02** **The top five customers contribute 60% of revenue,** **The customers' customers are BYD** Not only does JiaDeLi rely on a single supplier for raw materials and production equipment, but **it also has a high dependence on major customers.** **The BOPP electrical film products produced by JiaDeLi are primarily sold to film capacitor manufacturers and metallized film companies,** with downstream customers including domestic leading film capacitor manufacturers such as Farah Electronics (600563.SH) and Eagle Peak Electronics (874717.NQ), as well as internationally leading capacitor film and film capacitor manufacturers like TDK, KEMET, and Toray. As a result, JiaDeLi has formed a significant dependence on major customers. The "Prospectus" shows that **the sales revenue from the top five customers accounted for 61.31%, 54.9%, 54.46%, and 60.61% of total revenue for the years 2022-2024 and the first half of 2025, indicating a high customer concentration.** Source: "Prospectus" It is worth noting that **JiaDeLi's accounts receivable have continued to grow in recent years,** with the book balances of accounts receivable being 81 million yuan, 126 million yuan, 156 million yuan, and 162 million yuan, **accounting for 14.75%, 23.89%, 21.23%, and 44.14% of total revenue, respectively.** In response to the Shanghai Stock Exchange's inquiry regarding the reasons and rationality for the continuous growth of the company's accounts receivable, JiaDeLi stated that **this is mainly due to Eagle Peak Electronics, Huajia New Materials, Huajing New Energy, and Hongdian Longtai, among others, frequently using DiLian vouchers for settlement.** Among them, Eagle Peak Electronics and Huajia New Materials have consistently been among JiaDeLi's top five customers. The "Prospectus" shows that **DiLian vouchers are certificates issued by BYD and its member enterprises, certifying the rights to accounts payable to suppliers according to the business rules of the supply chain information service platform,** belonging to supply chain financial debt certificates, **which do not fully meet the constitutive elements of various bills as stipulated in relevant regulations and do not meet the conditions for bill recognition.** \*\* In fact, BYD is not a direct customer of Jiadeli, but since the application field of BOPP electrical film includes new energy vehicles, **BYD is a customer of Jiadeli's main customers.** As of the end of each period, the amount of Jiadeli's D-chain promissory notes was 0 yuan, 25.9274 million yuan, 47.1725 million yuan, and 56.5814 million yuan, respectively. Regarding the Shanghai Stock Exchange's inquiry about how the company accounts for the D-chain promissory notes received, Jiadeli stated in its "Reply Letter" that **the company has not ceased to recognize the accounts receivable corresponding to the D-chain promissory notes, and the purpose of holding the D-chain promissory notes is generally to hold them until maturity, managing the D-chain promissory notes to collect contract cash flows, and the accounts receivable of the D-chain promissory notes are reported under accounts receivable,** in accordance with the relevant requirements of accounting standards. **As of the end of 2025, all the aforementioned D-chain promissory notes have been redeemed upon maturity.** If the impact of the D-chain promissory notes is excluded, the book balance of Jiadeli's accounts receivable for each period accounted for 14.75%, 18.98%, 14.8%, and 14.37% of revenue, respectively. This image may be generated by AI Image source: Canned Image Library In addition, there are contradictions between Jiadeli's financial data and its customer Eagle Peak Electronics. Jiadeli's "Prospectus" shows that **Eagle Peak Electronics has been one of the top five accounts receivable debtors of the company in each period,** with amounts of 5.2944 million yuan, 12.4613 million yuan, 35.1821 million yuan, and 29.1089 million yuan, respectively. However, according to the "Transfer Instructions" released by the new third board listed company Eagle Peak Electronics in July 2025, **Jiadeli was only one of the top five units for its advance payments in the first nine months of 2024, and did not enter the top five in 2022 and 2023,** with the minimum advance payment amounts for the top five units in those two years being 300,000 yuan and 78,000 yuan, respectively, indicating a data discrepancy between the two. Image source: Eagle Peak Electronics "Transfer Instructions" **03** **Three generations of entrepreneurship and business management,** **Two cousins hold 95.89% of the shares** **The growth and development of Jiadeli is backed by the story of the Huang family, three generations working together in entrepreneurship and business management.** **The first generation of the Huang family consists of Huang Dongliang (deceased) and Guo Lizhen,** who founded the predecessor of Jiadeli, Jiadeli Limited, in May 2002, with **Guo Lizhen as the founder.** Huang Dongliang and Guo Lizhen have one son and one daughter, among whom **the son passed away early, leaving behind a grandson, Huang Zezhong (born in March 1987), with his daughter-in-law Chen Meiying, while their daughter Huang Bifen has a grandson Huang Yanhua (born in November 1985) with her son-in-law Huang Huanming.** **In other words,** Huang Yanhua and Huang Zezhong are cousins from the same grandmother/grandfather.\*\* The prospectus and the reply letter do not specify the personal information of Huang Dongliang and Guo Lizhen, the elderly couple, as well as their deceased son, daughter-in-law, and daughter. However, the prospectus shows that **son-in-law Huang Huanming was born in October 1962, has a high school education, and has served as the executive director and general manager of Quanzhou Xinhua Welding Equipment Co., Ltd., and as an assistant engineer at East China Electric Power.** **After the establishment of Jiadeli Limited, it was jointly managed by the elderly couple Huang Dongliang and Guo Lizhen, along with their daughter Huang Bifen and son-in-law Huang Huanming,** with Huang Dongliang, Huang Bifen, and Huang Huanming serving as the chairman, general manager, and director of the company, respectively. Later, **the third generation of the Huang family also began to take positions in the family business.** **Grandson Huang Zezhong directly entered Jiadeli Limited after graduating with a bachelor's degree in 2008,** having held positions such as sales manager, director, deputy general manager, and general manager. **Grandson Huang Yanhua** worked outside for 5 years as the head of the production department at East China Electric Power before **joining Jiadeli Limited in February 2012,** having served as the head of the company's equipment and engineering department, director, and deputy general manager. This image may have been generated by AI Image source: Canned Image Library **In 2010, due to the advanced age of Huang Dongliang and Guo Lizhen, they decided to arrange for the family succession of Jiadeli Limited.** At that time, since the elderly couple's son had passed away and grandson Huang Zezhong was already involved in the company's operations, **the elderly couple directly transferred 50% of the shares of Jiadeli Limited to grandson Huang Zezhong.** Meanwhile, since the elderly couple's daughter Huang Bifen and son-in-law Huang Huanming were involved in the company's management, and grandson Huang Yanhua had no siblings, **the elderly couple then directly transferred the remaining 50% of the shares to grandson Huang Yanhua.** **After the share transfer was completed, the entrepreneurial generation and the second generation of guardians gradually withdrew from the management of Jiadeli Limited.** In November 2022, Huang Dongliang resigned as director and chairman due to advanced age, **son-in-law Huang Huanming took over as the new chairman of Jiadeli Limited and has served to this day, and daughter-in-law Chen Meiying was also added as a director;** at the same time, since the elderly couple's daughter Huang Bifen reached retirement age, **the position of general manager was also handed over to grandson Huang Zezhong, while grandson Huang Yanhua serves as director and deputy general manager, and Huang Zezhong's cousin Huang Kunfeng serves as the company's financial director.** It is worth noting that **in September 2023, due to Huang Zezhong and Huang Yanhua giving up their foreign resident status in business registration, Jiadeli Limited changed from a joint venture of Taiwan, Hong Kong, and Macau to a natural person investment or holding enterprise.** In March 2024, Jiadeli Limited was fully transformed into a joint-stock company, with Huang Zezhong and Huang Yanhua each holding 50% The Chief Economist of the China Enterprise Capital Alliance, Bai Wenxi, stated that family businesses may be more inclined to employ family members while neglecting the introduction and cultivation of external talent, **which may lead to a lack of innovation capability and competitiveness, thereby affecting the long-term development of the company.** Source: "Prospectus" In addition, **in June 2025, just five months before the IPO application, Jiadeli first introduced external shareholders through equity financing at a capital increase price of 8.83 yuan per share, bringing in four external shareholders: Fuchuang Investment, Jiaokong Jinshi, Jinyuan Zhanhong, and China Merchants Culture and Tourism.** These four institutions acquired 1.92%, 0.82%, 0.82%, and 0.55% of the company's shares for 70 million yuan, 30 million yuan, 30 million yuan, and 20 million yuan, respectively, **with the post-investment valuation of the company being approximately 3.648 billion yuan.** After introducing the aforementioned institutions, Jiadeli's equity structure has also been optimized. As of now, **Huang Zezhong and Huang Yanhua, as the company's co-controlling shareholders and actual controllers, each hold 47.94% of Jiadeli's shares, totaling a direct shareholding of 95.89%.** Source: "Prospectus" It is worth noting that during the process of introducing external shareholders, **Huang Zezhong and Huang Yanhua, as the repurchase obligors, signed a betting agreement with the four institutional shareholders.** Although the acceptance of Jiadeli's IPO application has terminated the betting agreement, **there are accompanying restoration clauses, which state that if the company fails to go public by December 31, 2028, a repurchase will be triggered.** Jiadeli stated that the company is not a party to the betting terms, nor is it linked to market value, and the repurchase will not lead to a change in the company's control, nor does it pose a serious impact on the company's ongoing operations or other serious impacts on investors' rights and interests. **However, if a repurchase is triggered in the future, it may create financial pressure on the actual controllers, thereby adversely affecting the stability of the company's equity structure.** From the first generation of entrepreneurship to the second generation of co-management, and to the third generation of business preservation and innovation, the Huang family has spent 24 years with the efforts of three generations in entrepreneurship and business preservation, finally standing at the door of the Shanghai Stock Exchange. 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