Gardli earns 700 million annually with "a membrane," Fujian cousin brothers hold 95% stake backed by family IPO

Nearly 95% of revenue depends on a single product.

Author | Zhuoma

Editor | Liu Qinwen

Stories of wealth creation in new energy are emerging everywhere, but you might not expect that a single “film” in new energy vehicles can also lead to an IPO. As industries like new energy vehicles, wind power, and photovoltaics explode, the demand for BOPP electrical insulation films (biaxially oriented polypropylene films) has surged, quietly ushering in a capital feast in this niche sector.

Quanzhou Jiade Li Electronic Materials Co., Ltd. (hereinafter “Jiade Li,” A25069.SH) is a company focused on the research, development, production, and sales of BOPP electrical insulation films. On March 13, the company will undergo a review by the Shanghai Stock Exchange.

The prospectus shows that for this IPO, Jiade Li plans to use the raised funds for “building a new Xiamen new material production base (Phase I)” and “supplementing working capital.” Jiade Li states that the new production base will produce products that are its current main products, which will help solve existing capacity bottlenecks and meet customer demand, while supplementing working capital will help optimize the company’s financial structure.

01

Product price decline accounts for nearly 95% of revenue,

Raw materials and production equipment rely on imports

BOPP electrical insulation film is a type of film made from polypropylene resin through a special stretching process, characterized by self-repair of small damages, high voltage resistance, uniform thickness, low electrical energy loss, and light weight, industry calls it “base film.” Based on these features, BOPP electrical insulation film can be used as the core material for film capacitors and as a composite copper foil substrate in lithium batteries.

Among them, film capacitors are one of the main types of capacitors in the new energy field. They act like small “energy storages,” with BOPP electrical insulation film separating two electrodes, allowing them to store charge. The quality of the insulation film directly affects the capacitor’s capacity stability and lifespan. Additionally, BOPP electrical insulation film can be placed in lithium battery anodes, making batteries safer and cheaper, representing an important new direction for lithium battery development.

The prospectus shows that Jiade Li’s main business is the research, development, production, and sales of BOPP electrical insulation films, which are the company’s main products and main source of revenue.

From 2022 to the first half of 2025 (hereinafter “each period”), Jiade Li’s BOPP 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 main business income, respectively. The company admits that its product structure is relatively single, which poses risks of insufficient response to macroeconomic changes and industry demand fluctuations.

Depending on thickness, Jiade Li’s BOPP electrical insulation films can be divided into ultra-thin, thin, and medium-thick types. Among them, ultra-thin and thin films are mainly used in new energy vehicles and renewable energy sectors, while medium-thick films are mainly used in industrial control and other fields.

Source: Prospectus

The prospectus indicates that ultra-thin film production requires high technical standards, and only a few manufacturers in the industry can produce ultra-thin films stably. In recent years, Jiade Li’s revenue and proportion from ultra-thin films have been increasing, with each period achieving revenues of 238 million yuan, 218 million yuan, 326 million yuan, and 183 million yuan, accounting for 43.25%, 41.37%, 44.78%, and 49.67% of main business income. The company attributes the growth in ultra-thin film performance to high demand driven by the booming new energy vehicle market and technological upgrades.

However, the average selling price of Jiade Li’s BOPP electrical insulation films has generally declined in recent years, with average prices of 53,300 yuan/ton, 49,700 yuan/ton, 48,800 yuan/ton, and 50,000 yuan/ton, respectively. The company states this is due to the decline in raw material polypropylene market prices and increased supply of thin and medium-thick films as domestic base film manufacturers ramp up new production lines, easing supply tightness and leading to a decrease in base film market prices.

In addition to BOPP electrical insulation films, Jiade Li’s products also include recycled granules, which are made from scrap and defective products recovered during BOPP film production. These are by-products of BOPP film manufacturing. The company’s sales of recycled granules achieved revenues of 28.17 million yuan, 31.00 million yuan, 38.95 million yuan, and 18.69 million yuan in each period, accounting for 5.12%, 5.88%, 5.35%, and 5.09% of main business income.

Driven by multiple product lines, Jiade Li’s performance has been strong in recent years, with revenues of 550 million yuan, 528 million yuan, 734 million yuan, and 367 million yuan in 2022–2024 and the first half of 2025, respectively, and net profits attributable to the parent of 192 million yuan, 141 million yuan, 238 million yuan, and 125 million yuan.

According to data from the China Electronic Components Industry Association, Jiade Li’s sales of polypropylene films for capacitors in 2024 rank second globally and first domestically, with market shares of 11.7% worldwide and 16.4% in China.

Additionally, Jiade Li also provided its 2025 performance forecast in the prospectus, projecting full-year revenue of 757 million yuan, a year-on-year increase of 3.18%; and net profit attributable to the parent of 244 million yuan, up 2.35%. The company attributes this growth to continued strong sales of BOPP electrical insulation films and increased production capacity from new lines.

Source: Prospectus

Besides maintaining growth, Jiade Li’s gross profit margins in each period are also high, with comprehensive gross margins of 49.29%, 41.82%, 46.1%, and 48.79%, all higher than the average margins of comparable industry companies during the same periods (41.31%, 33.22%, 32.88%, and 36.85%).

In response, Jiade Li states that the high gross margins are due to insufficient supply of domestic ultra-thin films, the company’s product structure mainly comprising ultra-thin films with significant performance advantages, and the company’s leading production efficiency and cost control.

In fact, Jiade Li’s gross profit margin is influenced by various factors such as raw material costs, product prices, market demand, and competitive landscape, with raw material costs and product prices being the primary factors.

Source: Canned图库

It is worth noting that Jiade Li’s raw materials heavily depend on imports.

The prospectus shows that the main raw material for manufacturing BOPP electrical insulation films is electrical-grade polypropylene resin, which accounts for about 70–80% of the base film cost. Electrical-grade polypropylene is a petrochemical product, but domestic production is relatively low. Most polypropylene resin used in domestic BOPP electrical insulation films is imported, mainly from Borealis (Nordic Chemicals), Hanwha Oil & Chemical, and Singapore TPC.

Currently, Jiade Li mainly sources polypropylene resin from Borealis, with small quantities from domestic suppliers for trial production. Borealis is a leading global petrochemical company headquartered in Abu Dhabi, UAE, and is Jiade Li’s largest supplier in each period. The company’s procurement from Borealis was 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 raw material procurement in each period.

Source: Prospectus

Besides reliance on a single supplier for raw materials, Jiade Li’s production equipment is also highly dependent on a single supplier.

The prospectus indicates that BOPP film production equipment is complex, with only a few manufacturers worldwide, including Germany’s Brückner, Germany’s Lindorff, and France’s Masure. To date, all 8 production lines of BOPP electrical insulation films that Jiade Li has put into operation, as well as 3 lines under construction, were purchased from Brückner. The company states that they have established a high degree of compatibility and long-term, stable cooperation with this supplier.

However, Jiade Li also admits that if future international trade frictions escalate, leading to restrictions on the supply of production equipment by the supplier’s country, the company might face difficulties in procurement or delays in equipment delivery, adversely affecting future operations.

02

Top five customers contribute 60% of revenue,

Customer’s customer is BYD

Not only does Jiade Li rely on a single supplier for raw materials and equipment, but it also has high customer concentration.

Jiade Li’s BOPP electrical insulation films are mainly sold to film capacitor manufacturers and metallized film companies, including leading domestic companies like Fara Electronics (600563.SH) and Yingfeng Electronics (874717.NQ), as well as international giants like TDK, KEMET, and Toray.

As a result, Jiade Li has a high dependence on major customers. The prospectus shows that from 2022 to the first half of 2025, sales to the top five customers accounted for 61.31%, 54.9%, 54.46%, and 60.61% of total revenue, respectively. Customer concentration is high.

Source: Prospectus

It is also noteworthy that Jiade Li’s accounts receivable have been growing steadily, with balances of 81 million yuan, 126 million yuan, 156 million yuan, and 162 million yuan in each period, representing 14.75%, 23.89%, 21.23%, and 44.14% of revenue.

In response to the SSE’s inquiry about the reasons and reasonableness of the continuous growth in accounts receivable, Jiade Li explained that it is mainly because customers like Yingfeng Electronics, Huajia New Materials, Huajing New Energy, and Hongdian Longtai use DiLink bills for settlement. Among them, Yingfeng Electronics and Huajia New Materials have been among the top five customers in each period.

The prospectus shows that DiLink bills are issued by BYD and its affiliates, based on supply chain information service platform rules, as certificates of creditor rights for accounts payable to suppliers, belonging to supply chain financial debt certificates. They do not fully meet the required elements of various bills under relevant regulations and do not qualify as bill confirmation.

In fact, BYD is not a direct customer of Jiade Li, but because BOPP electrical insulation films are used in new energy vehicles, BYD is a customer of Jiade Li’s major customers. As of each period’s end, Jiade Li’s DiLink bill amounts were 0 yuan, 25.92 million yuan, 47.17 million yuan, and 56.58 million yuan.

Regarding the SSE’s inquiry about how the company accounts for the DiLink bills upon receipt, Jiade Li responded in its reply that the company has not derecognized the receivables corresponding to the DiLink bills, and the purpose of holding the bills is generally to hold until maturity. The management of these bills aims to collect contractual cash flows, and the bills are reported as accounts receivable, in accordance with accounting standards. As of the end of 2025, all these bills have been redeemed upon maturity.

If the impact of DiLink bills is excluded, Jiade Li’s accounts receivable balances in each period are 14.75%, 18.98%, 14.8%, and 14.37% of revenue.

This image may be AI-generated

Source: Canned图库

Additionally, there are inconsistencies between Jiade Li’s financial data and its customer Yingfeng Electronics.

Jiade Li’s prospectus states that Yingfeng Electronics has been among the top five accounts receivable payers in each period, with amounts of 5.29 million yuan, 12.46 million yuan, 35.18 million yuan, and 29.11 million yuan.

However, according to the “Guao Transfer Explanation” published in July 2025 by Yingfeng Electronics, a company listed on the New Third Board, Jiade Li was only among Yingfeng Electronics’ top five prepayment units in the first nine months of 2024, and not in 2022 or 2023. The minimum prepayment amounts for those years’ top five units were 300,000 yuan and 78,000 yuan, respectively, indicating a discrepancy.

Source: Yingfeng Electronics “Guao Transfer Explanation”

03

Three generations of family entrepreneurship and succession,

Two cousins hold 95.89% of shares

The growth of Jiade Li is rooted in the story of the Huang family’s three generations working together to start and sustain the business.

The first generation of the Huang family includes Huang Dongliang (deceased) and Guo Lizhen, who founded the predecessor of Jiade Li, Jiade Li Limited, in May 2002.

Huang Dongliang and Guo Lizhen had one son and one daughter. Their son passed away early, leaving a grandson Huang Zezhong (born March 1987) through his daughter-in-law Chen Meiying, and their daughter Huang Bifen married Huang Huanming, with whom she has an outside grandson Huang Yanhuang (born November 1985). In other words, Huang Yanhuang and Huang Zezhong are cousins through their grandmother/grandmother-in-law.

The prospectus and reply letter do not disclose personal details of Huang Dongliang, Guo Lizhen, or their deceased son, daughter-in-law, or daughter. However, the prospectus states that Huang Huanming was born in October 1962, with a high school education, and has served as executive director and general manager of Quanzhou XinHua Welding Equipment Co., Ltd., and as an assistant engineer at East China Electric Power.

After Jiade Li Limited was established, it was jointly managed by Huang Dongliang, Guo Lizhen, their daughter Huang Bifen, and son-in-law Huang Huanming. Huang Dongliang, Huang Bifen, and Huang Huanming served as chairman, general manager, and director, respectively.

Later, the third generation of the Huang family also began to join the family business. Grandson Huang Zezhong, after graduating with a bachelor’s degree in 2008, directly joined Jiade Li Limited, serving as sales manager, director, deputy general manager, and general manager. Grandson Huang Yanhuang also worked for five years as head of the East China Electric Power production department before joining Jiade Li Limited in February 2012, where he served as head of equipment and engineering, director, and deputy general manager.

This image may be AI-generated

Source: Canned图库

In 2010, due to the aging of Huang Dongliang and Guo Lizhen, they decided to arrange for family succession of Jiade Li Limited.

Since their son had passed away and grandson Huang Zezhong was involved in management, the elderly transferred 50% of Jiade Li Limited’s shares directly to Huang Zezhong. Meanwhile, because their daughter Huang Bifen and son-in-law Huang Huanming were involved in management, and grandson Huang Yanhuang had no siblings, the elderly transferred the remaining 50% of shares directly to Huang Yanhuang.

After the share transfer, the first generation of entrepreneurs and the second generation of successors gradually exited management of Jiade Li Limited.

In November 2022, Huang Dongliang resigned as director and chairman due to age, and son-in-law Huang Huanming succeeded as the new chairman, currently serving. The daughter Huang Bifen reached retirement age, and the general manager position was handed to grandson Huang Zezhong, with grandson Huang Yanhuang serving as director and vice general manager, and Huang Kunfeng, a cousin of Huang Zezhong, as CFO.

It is noteworthy that in September 2023, because Huang Zezhong and Huang Yanhuang renounced their overseas resident status, Jiade Li Limited was converted from a joint venture between Taiwan, Hong Kong, and Macau to a company with natural person investment or control. In March 2024, Jiade Li Limited was fully converted into a joint-stock company, with Huang Zezhong and Huang Yanhuang each holding 50%.

Wenxi Bi, chief economist of the China Enterprise Capital Alliance, states that family businesses may prefer to appoint family members, neglecting external talent recruitment and training, which could lead to a lack of innovation and competitiveness, affecting long-term development.

Source: Prospectus

Additionally, in June 2025, just five months before the IPO application, Jiade Li conducted its first external equity financing, raising funds at 8.83 yuan per share from Fuchuang Venture Capital, Jiaokong Jingshi, Jinyuan Zhanhong, and China Merchants Cultural Tourism. These four institutions acquired 1.92%, 0.82%, 0.82%, and 0.55% of the company’s shares at respective investment amounts of 70 million, 30 million, 30 million, and 20 million yuan, with an estimated post-investment valuation of about 3.648 billion yuan.

After this, Jiade Li’s shareholding structure was optimized. Huang Zezhong and Huang Yanhuang, as the company’s co-controlling shareholders and actual controllers, each hold 47.94% of shares, totaling 95.89% directly.

Source: Prospectus

It is also noteworthy that during the process of bringing in external shareholders, Huang Zezhong and Huang Yanhuang, as buyback obligations, signed betting agreements with the four institutional shareholders. Although the IPO application acceptance has terminated these agreements, they include recovery clauses, which will be triggered if the company fails to go public before December 31, 2028.

Jiade Li states that it is not a party to the betting agreement and is not linked to market value. The buyback will not change control or seriously affect the company’s ongoing operations or investor rights. However, if triggered in the future, it could put financial pressure on the actual controllers, potentially impacting the stability of the company’s equity structure.

From the first generation’s entrepreneurship, to the second generation’s joint management, and now to the third generation’s innovation and succession, the Huang family has spent 24 years building their business, finally standing at the gates of the Shanghai Stock Exchange.

Do you believe Jiade Li’s IPO will succeed? Feel free to share your thoughts in the comments.

Author’s note: Personal opinions are for reference only.