Stock Abbreviation: Wenzhou Hongfeng
Stock Code: 300283
Wenzhou Hongfeng Electrical Alloy Co., Ltd.
(Tangxia Area, Daqiao Industrial Zone, Beibaixiang Town, Yueqing City, Zhejiang Province)
2026 A-Share Issuance to Specific Targets
Prospectus
(Application Draft)
Sponsor (Lead Underwriter)
Zhong De Securities Co., Ltd.
(22nd Floor, Office Building 1, Huamao Center, 81 Jianguo Road, Chaoyang District, Beijing)
July 2026
Statement
The Company and its controlling shareholders, actual controllers, directors, and senior management warrant that this prospectus and other information disclosure materials do not contain any false records, misleading statements, or major omissions, and assume corresponding legal liability for their authenticity, accuracy, and completeness.
The Company's principal, the person in charge of accounting work, and the person in charge of the accounting institution guarantee the authenticity and completeness of the financial and accounting data in this prospectus.
Any decision or opinion made by the China Securities Regulatory Commission or the Shenzhen Stock Exchange regarding this issuance does not indicate their guarantee of the authenticity, accuracy, or completeness of the application documents and disclosed information, nor does it constitute a substantive judgment or guarantee of the issuer's profitability, investment value, or investor returns. Any statement to the contrary is a false representation.
According to the Securities Law, after the securities are issued in accordance with the law, the issuer is responsible for changes in its operations and earnings. Investors shall independently judge the investment value of the issuer, make their own investment decisions, and bear the investment risks arising from changes in the issuer's operations and earnings or fluctuations in securities prices after the issuance.
Major Matters Notice
The Company specifically requests investors to carefully read the full content of this prospectus and pay special attention to the following important matters and company risks before making investment decisions.
I. Special Risk Warnings
(I) Risk of Raw Material Price Volatility
Silver and copper account for a high proportion of the raw materials required for the Company's production. During the reporting period, the procurement amounts of silver and copper accounted for 87.09%, 83.64%, 79.03%, and 88.20% of the Company's total raw material procurement, respectively. Fluctuations in the prices of major raw materials such as silver and copper will have a significant impact on the Company's profitability.
(II) Risk of Accounts Receivable Recovery
At the end of each period during the reporting period, the book value of the Company's accounts receivable was 363.193 million RMB, 395.7897 million RMB, 394.8759 million RMB, and 339.3975 million RMB, respectively, accounting for 12.72%, 12.42%, 11.06%, and 9.00% of total assets. Although the Company has formulated reasonable bad debt provision policies based on industry characteristics, customer features, and collection status, and has made corresponding bad debt provisions, the large amount of accounts receivable means that any unrecoverable bad debt loss will adversely affect the Company's asset quality and financial position.
(III) Inventory Risk
At the end of each period during the reporting period, the book value of the Company's inventory was 765.1452 million RMB, 812.7594 million RMB, 943.2504 million RMB, and 1,177.8163 million RMB, respectively, showing year-on-year growth. The Company conducted impairment tests on inventory, and the inventory price depreciation reserves at the end of each period were 23.4405 million RMB, 33.3182 million RMB, 23.2632 million RMB, and 46.8494 million RMB, accounting for 2.97%, 3.94%, 2.41%, and 3.83% of the inventory balance at the end of each period, respectively. As the Company's production scale expands further, inventory may increase. If downstream customer sales are sluggish or raw material prices drop significantly and unilaterally, the Company may face the risk of inventory devaluation losses, thereby adversely affecting its operating performance.