Holding nearly 4 billion in wealth management, JLC is still seeking to raise 4.2 billion on the main board.

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The Shenzhen Stock Exchange is about to welcome a 10-billion-yuan project.

On May 12, Shenzhen JLC Technology Group Co., Ltd. (hereinafter referred to as “JLC”) is about to go public on the main board of the Shenzhen Stock Exchange.

With its core focus on serving small and medium-sized customers, JLC has rapidly risen in recent years through the “PCB pooling + online platform” model, with projected revenues and net profits in 2025 reaching 10.232 billion yuan and 1.306 billion yuan respectively, up 28.4% and 32.87% year-on-year.

Against the backdrop of maintaining rapid growth in a niche track, JLC’s capital structure and fundraising plans are drawing attention.

Relying on the “payment before delivery” transaction method, JLC continues to accumulate cash flow and allocates a large amount of funds to bank wealth management products, forming sizeable financial assets.

By the end of 2025, JLC’s trading financial assets reached 3.871 billion yuan, accounting for more than 60% of current assets.

Against this background, JLC plans to raise 4.2 billion yuan through its IPO for production expansion and related project construction, even though its current capacity utilization has not yet been fully saturated.

Holding both wealth management and large-scale financing simultaneously has made the necessity and efficiency of JLC’s fundraising a focus of market discussion.

The “Pooling” Business of PCB

JLC mainly provides integrated full-industry-chain services for small and medium customers in PCB manufacturing, electronic components trading and purchasing, as well as PCBA (electronic assembly).

Among these, PCB and electronic components businesses are the main sources of revenue, together contributing over 70% of JLC’s income in 2025.

Specifically, from 2023 to 2025, PCB manufacturing generated 2.927 billion yuan, 3.361 billion yuan, and 3.884 billion yuan in revenue respectively, accounting for about 40% of total revenue.

As one of the core businesses, JLC’s PCB manufacturing operation model is highly unique.

From the perspective of the industry, PCB manufacturing has a high entry barrier, facing challenges like customization, lengthy production lines, and complex pre-production data validation during the production design process.

If traditional factories rely solely on manual methods to handle small, diverse, and urgent orders from small and micro customers, the high communication costs and inefficiencies can easily erode profits.

JLC has identified a differentiated opportunity in this pain point, turning non-standard PCB manufacturing into a flexible and efficient “pooling” business.

Specifically, JLC mainly uses a fully automated CAM data processing system and its independently developed intelligent paneling algorithms to solve the complexity of pre-production data processing, breaking the barrier that scattered orders cannot be scaled.

As a result, the system optimally combines PCB orders of different shapes and parameters each day, “piecing them together” on one board for intensive batch production, greatly increasing material utilization and significantly reducing production costs.

Furthermore, JLC also achieves online sales through its self-built website and order assistant client, providing small and medium customers with full-process services including real-time online quoting and payment.

This innovative model of bundling “long-tail demand” into pooled orders has directly brought impressive gross margins to JLC’s PCB business.

From 2023 to 2025, JLC’s PCB business gross margins were 28.73%, 30.13%, and 28.09%, respectively.

This even exceeds many high-performance PCB manufacturers, such as Shenghong Technology, whose PCB gross margin in 2025 was 19.9%, 8.09 percentage points lower than JLC’s.

In comparison, another major business supporting JLC’s performance, “electronic components distribution,” has a relatively limited gross margin.

In 2025, the revenue of the electronic components distribution business was 3.651 billion yuan, with a gross margin of 19.95%.

This relates to the business model of electronic components distribution.

In this business, JLC mainly relies on big data to forecast popular materials and procures inventory in advance. After customers place orders, goods are shipped directly from JLC’s own warehouses, much like a self-operated platform, but manufacturing is not involved.

Based on this business structure, whether it’s the PCB business focusing on flexible manufacturing or the electronic components business focusing on distribution, JLC completes the entire process from customization to sales mainly through online channels.

From 2023 to 2025, JLC achieved revenues of 6.145 billion yuan, 7.282 billion yuan, and 9.406 billion yuan through online channels, accounting for more than 90% in each year.

Looking at JLC’s overall business logic, the core is to use digitalization to integrate scattered demand, transactions, and fulfillment capabilities into a single system, forming a "manufacturing + platform" composite model.

Large Wealth Management and Aggressive Financing Coexist

Corresponding to its highly digitalized business model, JLC adopts the typical “payment before delivery” settlement method in transactions.

In the PCB business, after customers upload design files and select process parameters via the website or order assistant, the system provides a quote, and they must pay online before JLC starts production, packaging, and shipping; the logic is the same for the electronic components business. After customers place orders on the Lichuang Mall, they must pay in advance before JLC proceeds with warehouse picking, inspection, and delivery.

The advantage of this transaction method is that JLC can continually accumulate a large cash flow during its operations.

On one hand, customer prepayments are received even before production and delivery; on the other, JLC itself faces no massive pressure from accounts receivable, making its overall cash flow structure clearly superior to that of traditional manufacturing businesses.

In 2025, JLC’s net cash flow from operating activities reached 1.904 billion yuan, significantly exceeding its net profit for the period.

From the asset structure perspective, this accumulation of funds has converted into sizeable financial assets.

At year-ends from 2023 to 2025, JLC’s trading financial assets had book values of 2.007 billion yuan, 2.957 billion yuan, and 3.871 billion yuan, accounting for 48.97%, 59.48%, and 61.59% of current assets, respectively, and have become the core component of current assets.

JLC mainly invests in bank wealth management products, including structured deposits and non-principal-guaranteed floating-income products.

To some extent, this reflects JLC’s strong “self-generating cash” capability: leveraging the “payment before delivery” model, not only can it maintain a positive operating cash flow cycle, but it can also further enhance returns through fund management.

But from another perspective, this also raises a point of debate: in the situation where a large amount of funds have already accumulated on the balance sheet and continues to be used for wealth management, the rationality of JLC’s current fundraising has been questioned.

In this IPO, JLC intends to raise 4.2 billion yuan, mainly for capacity expansion, smart PCBA lines, R&D center, and information upgrades.

Moreover, JLC’s production lines are not at full capacity. From 2023 to 2025, PCB capacity utilization was basically around 76%.

In response, JLC explained that 90% capacity utilization is essentially the upper limit. Since future customer orders can’t be predicted, some spare capacity is generally reserved to ensure customer response efficiency, and 70%-80% is already considered a high level of utilization.

“Fast delivery is one of our core competencies. To guarantee order delivery speed and production quality, we typically limit order-taking when capacity utilization is too high,” JLC states.

Holding a large and growing amount of wealth management assets, while raising large IPO funds for long-term construction projects, the rationality of JLC’s fundraising clearly presents room for discussion.

From a horizontal comparison, the 4.2 billion yuan scale of fundraising ranks at the top of the current A-share IPO market.

According to Wind data as of May 11, 2026, total fundraising for A-share IPOs this year is 48.82 billion yuan, with the highest single raise by Shenghe Jingwei at only 5.028 billion yuan.

Viewed this way, JLC’s single fundraising already approaches the level of top-tier projects.

The core issue JLC needs to answer is not just “whether to expand production,” but “given already ample funds, is it necessary to take on higher expansion costs through the capital market,” and whether the marginal benefits of new large-scale production lines can be quickly realized.

Risk warning and disclaimerThe market has risks, investment requires caution. This article does not constitute individual investment advice and does not consider individual users’ special investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their specific situation. Investments made based on this are at one’s own risk. ```