Tengda Technology listed on Shenzhen Stock Exchange

[Abstract]:Tengda Technology (001379) SZSE Main Board – Shandong's 1st registration-based fastener IPO. R&D + smart manufacturing. Global leadership target with IPO funds.

On January 19, 2024, Shandong Tengda Fastener Technology Co., Ltd. (Stock Abbreviation: Tengda Technology; Stock Code: 001379) officially rang the opening bell to commence trading on the Main Board of the Shenzhen Stock Exchange. As the first enterprise from Shandong Province to list on the Main Board of the Shenzhen Stock Exchange following the implementation of the registration-based IPO system, Tengda Technology's listing not only marks its entry into a new stage of capital-driven development but also serves as a significant milestone for the high-quality development of China's stainless steel fastener industry. It sets an exemplary model for enterprises in segmented fields to connect with the capital market.

For this listing, Tengda Technology publicly issued 50 million shares at a price of 16.98 RMB per share. The capital market demonstrated high recognition of its development potential, resulting in a strong market debut. The stock opened at 28.00 RMB per share, a substantial surge of 64.90% from the issue price. Trading activity continued to climb throughout the day, culminating in a robust closing performance. This positive market feedback not only validates investors' confidence in Tengda Technology's core competitiveness but also highlights that the capital market is gaining a deeper understanding of the critical role of fasteners as the "grain of industry."

As fundamental components of the national economy, fasteners are often referred to as the "teeth of industry." They are widely used in key sectors such as construction, machinery, power, railways, transportation, telecommunications, furniture, and household appliances. The variety and quality stability of fasteners directly impact the performance and quality of host products. In recent years, as downstream industries have accelerated their transformation and upgrading, the global demand for fasteners has continued to recover. Wind data shows that from January to November 2021, China's average monthly output of metal fasteners reached 863,600 tons, an increase of 54,900 tons compared to 2020, representing a significant year-on-year growth. Data from the General Administration of Customs indicates that in 2022, China's fastener exports reached 4.9788 million tons, up 1.26% from 2021, maintaining steady growth in export markets. After more than two decades of accumulation, China's fastener industry has formed a complete industrial chain with stable overall profit margins, providing fertile ground for the growth of leading enterprises.

Founded in December 2015, Tengda Technology has risen rapidly against the backdrop of sustained industry prosperity. Focusing on the R&D, production, and sales of stainless steel fasteners, the company has grown into a benchmark enterprise with a leading production scale in the domestic stainless steel fastener industry, leveraging economies of scale and refined management capabilities. It was designated as one of the second batch of Single Champion Enterprises in Manufacturing in Shandong Province. A certificate issued by the China Machinery General Parts Industry Association in January 2023 confirmed that from 2020 to 2022, Tengda Technology's production and sales volume of stainless steel fasteners ranked among the top three in the same industry for three consecutive years, highlighting its core competitiveness in this segmented field.

Production and sales data intuitively demonstrate the company's growth trajectory. According to the prospectus, from 2020 to the first half of 2023, Tengda Technology's stainless steel fastener production was 51,483.34 tons, 66,811.22 tons, 69,738.87 tons, and 37,759.22 tons, respectively, showing steady growth. Sales volume rose concurrently to 52,485.74 tons, 70,777.79 tons, 77,141.07 tons, and 35,528.05 tons, indicating smooth production-sales alignment and strong market absorption capacity. The company has performed particularly outstandingly in the export market, with products sold to over 40 countries and regions worldwide, including developed manufacturing nations such as Germany, Italy, Japan, the UK, and Australia. Recognized as a sample enterprise for China's Foreign Trade Export Leading Index, the company holds a leading position in export advantages within the industry.

Tengda Technology's industry standing stems from its "dual-wheel drive" strategy in R&D innovation and intelligent manufacturing. Although the market scale of China's fastener industry continues to expand, the technical level of some high-end products still lags behind international advanced standards. To break through technical bottlenecks, Tengda Technology has continuously increased R&D investment and established a comprehensive R&D system. It operates a provincial-level enterprise technology center in Shandong Province and a Shandong High-Performance Stainless Steel Fastener Engineering Laboratory, and is one of the few enterprises in the industry to have passed CNAS national laboratory certification. Leveraging its profound technical accumulation, the company has also been deeply involved in the formulation of industry standards, leading or participating in the drafting of four national standards, including "Hexagon Flange Bolts with Hexagon Socket," "Technical Conditions for Spring Lock Washers - Conical Spring Lock Washers," "Combinations of Bolts or Screws and Conical Spring Lock Washers," and "Fasteners for Nuclear Power Plants Part 3: Stainless Steel Bolts, Screws, and Studs," successfully translating its technological advantages into industry discourse power.

Addressing the industry characteristics of diverse product specifications, large batch sizes, and short delivery cycles, Tengda Technology's deep layout in intelligent manufacturing demonstrates remarkable foresight. The company has comprehensively adopted automated production equipment to cover key production processes, achieving full-process automation control from raw material input to finished product output. It has established a robust traceability system for raw materials and production processes, utilizing information systems to achieve full life-cycle quality control. Furthermore, by introducing multiple information management systems such as ERP and MES, the company has realized real-time monitoring and efficient coordination across production, sales, and inventory. These measures not only ensure product quality stability but also enhance production efficiency and order response speed, earning the company titles such as "Shandong Province Second Batch 'Modern Advantageous Industrial Cluster + Artificial Intelligence' Pilot Demonstration Enterprise" and "Zaozhuang City Intelligent Manufacturing Pilot Demonstration Enterprise."

Its formidable technological and manufacturing capabilities have won the recognition of globally renowned clients. The company has successfully established long-term, stable cooperative relationships with top-tier international fastener traders such as WURTH GROUP and SCHAFER + PETERS GMBH. These partners possess extensive channel networks in the global market, providing continuous order support for Tengda Technology while elevating its brand influence in the international market, laying a solid foundation for future overseas expansion.

This entry into the capital market has injected strong momentum into Tengda Technology's capacity expansion and strategic upgrading. The funds raised will be primarily allocated to the "Stainless Steel Fastener Expansion and Technical Transformation Project," the "Fastener Product Line Expansion and Supporting Production Line Construction Project," the "Stainless Steel Fastener Production and Intelligent Warehousing Base Construction Project," and the replenishment of working capital. Regarding current capacity, from 2020 to the first half of 2023, the combined capacity utilization rate of the company's four core products—bolts, nuts, threaded rods, and washers—reached 72.82%, 92.53%, 88.48%, and 92.37%, respectively. Maintaining high-level operations, capacity bottlenecks have become a key constraint on the company's further growth. The implementation of the fundraising projects will effectively break this limitation, significantly expanding capacity scale and enriching the product structure to meet diverse downstream demands.

Notably, the "Stainless Steel Fastener Production and Intelligent Warehousing Base Construction Project" is located in Dainan Town, Jiangsu Province, a well-known core area of the domestic stainless steel industrial cluster with a complete system for raw material supply, processing support, and technological R&D. This site selection strategy will enable Tengda Technology to fully integrate local industrial chain resources, reduce raw material procurement and logistics costs, enhance supply chain response speed, and further strengthen its profitability and market competitiveness.

Listing on the A-share market is merely a new starting point for Tengda Technology's development. Looking ahead, the company will take this listing as an opportunity to continuously increase R&D investment, deepen the upgrading of intelligent manufacturing, and continually enhance product quality and technical content. Simultaneously, leveraging the power of the capital market, it will accelerate capacity release and market expansion, striving to become a globally influential professional stainless steel fastener producer and integrated service provider, contributing greater strength to the international development of China's fastener industry.

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Tengda Technology listed on Shenzhen Stock Exchange

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