--- title: "[IPO Frontline] From the New Third Board to the Hong Kong Stock Exchange: Kangjin Electric's Capital 'Marathon'" type: "Topics" locale: "zh-CN" url: "https://longbridge.com/zh-CN/topics/32122613.md" description: "Recently, Kangjin Electric (873863.SH), a company listed on the New Third Board, submitted its prospectus to the Hong Kong Stock Exchange, knocking on the door of the HKEX. Kangjin Electric's path to listing has been full of twists and turns. In December 2020, the company initiated an IPO plan for the Shenzhen Stock Exchange's ChiNext Board, then shifted to the Beijing Stock Exchange, but both plans were later shelved. In February 2023, the company chose to list on the New Third Board, but due to low market liquidity, it ultimately decided to move to the Hong Kong stock market. On the New Third Board, Kangjin Electric currently has a total market capitalization of only about 1 billion yuan (in RMB, the same below)..." datetime: "2025-07-23T05:55:01.000Z" locales: - [en](https://longbridge.com/en/topics/32122613.md) - [zh-CN](https://longbridge.com/zh-CN/topics/32122613.md) - [zh-HK](https://longbridge.com/zh-HK/topics/32122613.md) author: "[财华社](https://longbridge.com/zh-CN/profiles/11651030.md)" --- > 支持的语言: [English](https://longbridge.com/en/topics/32122613.md) | [繁體中文](https://longbridge.com/zh-HK/topics/32122613.md) # [IPO Frontline] From the New Third Board to the Hong Kong Stock Exchange: Kangjin Electric's Capital 'Marathon' Recently, Kangjin Electric (873863.SH), a company listed on the New Third Board, submitted its prospectus to the Hong Kong Stock Exchange, knocking on the door of the HKEX. Kangjin Electric's path to listing has been full of twists and turns. In December 2020, the company initiated an IPO plan for the Shenzhen Stock Exchange's ChiNext board, then shifted to the Beijing Stock Exchange, but both plans were later shelved. In February 2023, the company chose to list on the New Third Board, but due to low market liquidity, it ultimately decided to move to the Hong Kong stock market. On the New Third Board, Kangjin Electric currently has a total market capitalization of only about 1 billion yuan (in RMB, same below). **Leader in the Power Equipment Ring Main Unit Sector** Kangjin Electric was founded in 2006 and is an integrated power equipment provider and smart energy management solutions provider. The company's business is divided into two main segments: smart power distribution equipment and smart new energy business solutions. The smart power distribution equipment segment mainly includes ring main units, transformers, high and low voltage complete sets of equipment, pole-mounted switches, distribution automation terminal equipment, and indoor switch components. The smart new energy business solutions segment covers smart energy storage, smart charging systems, and comprehensive energy projects and energy management platforms. As of the end of 2024, Kangjin Electric had over 1,800 customers in total, with grid customers being the most important major clients. The top two customers in 2024 were both state-owned grid companies. In terms of market share, data shows that based on 2024 ring main unit sales revenue, Kangjin Electric ranked third, holding a 4.4% market share in China. **Steady Revenue Growth, Declining Gross Margin Year by Year** With the accelerated advancement of global urbanization and the rapid development of the new energy industry, the power distribution equipment market is facing unprecedented growth opportunities. Frost & Sullivan data shows that driven by factors such as energy transition and the integration of renewable energy, China's power distribution equipment investment is projected to increase to 601 billion yuan (in RMB, same below) by 2029, with a compound annual growth rate (CAGR) of 9.0% from 2024 to 2029, significantly faster than the 1.7% CAGR from 2020 to 2024. Kangjin Electric has benefited from the era's dividends, with its revenue maintaining high growth in recent years. In 2022, 2023, and 2024, Kangjin Electric's revenue was 638 million yuan, 824 million yuan, and 969 million yuan, respectively, with growth rates of 29.1% and 17.6% in 2023 and 2024. To adapt to the accelerating transition to a new energy-dominated power system, Kangjin Electric has ventured into the smart renewable energy solutions industry, participating comprehensively in the integration of the "source-grid-load-storage" system through wind power, photovoltaic, energy storage, and charging infrastructure systems. However, this business currently contributes limitedly, with revenue of only over 41 million yuan in 2024, accounting for 4.3% of total revenue, and has not yet become a growth engine. The ring main units and transformers in the smart power distribution equipment segment have grown rapidly in recent years, serving as the main drivers of the company's growth. In terms of profits, Kangjin Electric's profits have fluctuated in recent years, with net profits of 51.779 million yuan, 56.247 million yuan, and 38.341 million yuan in 2022, 2023, and 2024, respectively. The company's gross margin performance has dragged down profit growth. During the aforementioned periods, the company's overall gross margins were 29.1%, 27.9%, and 25.4%, showing a year-by-year decline. The gross margin decline in 2024 was particularly significant, which the company attributed to increasingly fierce market competition, leading to lower product prices and higher material and installation service costs. Regarding the use of funds raised from the Hong Kong IPO, Kangjin Electric plans to invest in the construction of a new production base in Ganzhou, Jiangxi Province, for sheet metal processing and integrated equipment manufacturing; establish a new R&D center in Shenzhen managed by the group-level research center to enhance the company's R&D capabilities; repay the company's debts; and for working capital and general corporate purposes. **Summary** As a leading player in the ring main unit market, Kangjin Electric still has a solid foundation in the power equipment sector. However, issues such as declining gross margins and the new energy business not yet scaling up add uncertainty to its future growth. Whether this Hong Kong IPO can help the company break through its bottlenecks remains to be seen, depending on its subsequent capacity expansion and R&D implementation. Author: Yao Yuan