Tengda Technology Lists on Shenzhen Main Board

[Abstract]:On January 19, 2024, Shandong Tengda Fastener Technology Co., Ltd. (Stock Abbreviation: Tengda Technology, Stock Code: 001379) officially rang the opening bell and listed on the Main Board of the Shenzhen Stock Exchange (SZSE).

On January 19, 2024, Shandong Tengda Fastener Technology Co., Ltd. (Stock Abbreviation: Tengda Technology, Stock Code: 001379) officially rang the opening bell and listed on the Main Board of the Shenzhen Stock Exchange (SZSE). This milestone makes Tengda Technology the first enterprise in Shandong Province to list on the SZSE Main Board following the implementation of the registration-based IPO system. The company publicly issued 50 million shares at an issue price of 16.98 yuan per share. On its debut trading day, the stock opened sharply at 28.00 yuan per share, surging 64.90% above the issue price. With highly active intraday trading and a stellar market performance, Tengda Technology officially embarked on its capital market journey, demonstrating strong investor confidence in both the stainless steel fastener industry and the company's core strengths.

Often referred to as the "rice of industry," fasteners are extensively used in core sectors of the national economy, including construction, machinery, power, transportation, and telecommunications. Their quality directly impacts the performance and reliability of host products. In recent years, driven by the rapid development of downstream industries such as new energy and high-end manufacturing, global demand for fasteners has continued to rebound. 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. Furthermore, data from the General Administration of Customs indicates that China's fastener export volume reached 4.9788 million tons in 2022, a year-on-year increase of 1.26%. As the industry's overall profit margins gradually stabilize, a fertile ground has been created for the growth of leading enterprises.

Established in December 2015, Tengda Technology rose as a leading enterprise during this favorable industry cycle. Dedicated to the R&D, production, and sales of stainless steel fasteners, it has grown into one of the largest manufacturers in the domestic industry and has been recognized as one of the second batch of "Manufacturing Single Champion Enterprises" in Shandong Province. According to the prospectus, from 2020 to the first half of 2023, the company's stainless steel fastener production volumes were 51,483.34 tons, 66,811.22 tons, 69,738.87 tons, and 37,759.22 tons respectively, with sales volumes growing in tandem to 52,485.74 tons, 70,777.79 tons, 77,141.07 tons, and 35,528.05 tons. A certification issued by the China General Machine Components Industry Association confirms that from 2020 to 2022, Tengda Technology's production and sales of stainless steel fasteners consistently ranked among the top three in the industry. The company holds a particularly significant advantage in exports, with its products sold to over 40 countries and regions worldwide.

The "dual-wheel drive" of R&D innovation and smart manufacturing is the core secret behind Tengda Technology's leading position. To meet the industry's demand for technological upgrades, the company has built a robust R&D system, establishing a Shandong Provincial Enterprise Technology Center and a Shandong High-Performance Stainless Steel Fastener Engineering Laboratory. It is also one of the few enterprises in the industry to obtain CNAS National Laboratory accreditation. Leveraging its profound technical expertise, the company has participated in drafting four national standards, including those for "Hexalobular socket flange head bolts" and "Stainless steel bolts for nuclear power plants," establishing significant technical barriers in high-end sectors like nuclear-grade fasteners.

Addressing the industry's pain points of "diverse varieties, large batches, and short delivery times," Tengda Technology has deeply integrated smart manufacturing. The company has fully adopted automated equipment in its production processes and established a comprehensive traceability system from raw material intake to finished product delivery. By implementing information management systems such as ERP and MES, it achieves real-time monitoring of the entire production and sales workflow. This not only ensures consistent product quality but also enhances order response efficiency. Thanks to this smart manufacturing system, the company has been recognized as a "Shandong Province 'Modern Advantageous Industrial Clusters + AI' Pilot Demonstration Enterprise" and a "Zaozhuang City Smart Manufacturing Pilot Demonstration Enterprise," laying a solid foundation for large-scale production.

This powerful comprehensive strength has earned Tengda Technology the favor of global clients. Not only has it been selected as a sample enterprise for China's Foreign Trade Export Leading Index, but it has also established long-term, stable partnerships with globally renowned fastener traders such as WURTH GROUP and SCHAFER + PETERS GMBH, securing a strong foothold in high-end markets like Germany, Italy, and Japan. The funds raised from this IPO will be strategically allocated to the "Stainless Steel Fastener Capacity Expansion and Technological Transformation Project," the "Product Line Extension and Supporting Production Line Construction Project," the "Smart Warehousing Base Construction Project," and the supplementation of working capital, precisely addressing the company's capacity bottlenecks. The prospectus reveals that from 2020 to the first half of 2023, the capacity utilization rates for the company's core products were 72.82%, 92.53%, 88.48%, and 92.37% respectively, consistently operating at high levels. The implementation of these projects will significantly boost production capacity and product diversity.

Notably, the smart warehousing base is located in Dainan Town, Jiangsu Province—a domestic hub for the stainless steel industry. This strategic location allows the company to fully leverage local industrial support and technical talent advantages, facilitating the integration of upstream and downstream supply chains to further reduce costs and increase efficiency. "Listing on the A-share market marks a new starting point for the company's development," a company executive stated. "Looking ahead, we will use the capital market as an engine to continuously increase R&D investment and deepen our smart manufacturing layout, steadily advancing towards our strategic goal of becoming a globally influential professional fastener manufacturer and integrated service provider."

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Tengda Technology Lists on Shenzhen Main Board

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