A-share subscription | Xinxing Tools (301677.SZ) opens for subscription. The revenue share of the series of products in annular drilling exceeds 80%.

On July 20, Zhejiang Xinxing Tools Co., Ltd. (referred to as Xinxing Tools (301677.SZ)) opened for subscription with an issue price of 33.58 yuan per share, a subscription limit of 0.6 million shares, a P/E ratio of 17.17 times, belonging to the Shenzhen Stock Exchange ChiNext Board, and Huatai United Securities as its sponsor institution. The prospectus shows that Xinxing Tools is a leading domestic manufacturer of hole processing cutting tools, focusing on the research, development, production, and sales of drilling cutting tools since its establishment, forming a series of annular drilling products, solid drilling products, and related supporting products. The company's products are widely used in engineering manufacturing and CNC machining fields such as steel structure engineering, rail transportation, shipbuilding, energy equipment, machinery manufacturing, and petroleum engineering. The company's end customers include China Railway, CNNC, Bosch, Panasonic, and other domestic and foreign enterprises, and have been used in domestic and international well-known engineering projects such as Qinshan Nuclear Power Station, Shanghai Maglev Train Project, East Sea Bridge, San Francisco Bay Bridge in the United States, and Busan Donghae Bridge in Korea. The main raw materials used in the company's production include high-speed tool steel, alloy tool steel, alloy structural steel, hard alloy blade blanks, and silver solder. During the reporting period, the main suppliers included He Ye Technology, Fuda Special Steel, Zhejiang Zhongjian, CITIC Tai Fook, etc. According to the different types of products, the company adopts different production modes. For standardized products, after reaching the delivery conditions agreed with customers, the company aims to "ship domestically on the same day and ship internationally within 7 days" and mainly adopts the "advance stocking" production mode to ensure rapid response to downstream customers; for customized products, it mainly adopts the "production according to sales" production mode. In terms of revenue contribution, during the reporting period, the sales revenue of annular drilling series products and solid drilling series products accounted for 86.89%, 88.56%, and 88.77% of the company's main operating income respectively, which is the main source of the company's main operating income. In the field of hole processing cutting tools, the company has been awarded the honor of National Manufacturing Single Champion Demonstration Enterprise, and the sales volume of steel plate drilling products accounts for over 50% among domestic tool production enterprises, ranking first in the domestic market in terms of sales volume. Financially, in 2023, 2024, and 2025, Xinxing Tools achieved operating revenue of approximately 425 million yuan, 467 million yuan, and 512 million yuan respectively; during the same period, the company achieved net profits of approximately 177 million yuan, 185 million yuan, and 198 million yuan respectively.