Yizumi Successfully Lists on ChiNext, Showing Great Development Potential

On the morning of January 23, 2015, bell ringing in Shenzhen Stock Exchange (SZSE) marked Yizumi’s successful listing in the A-share market of SZSE; and Yizumi became the first compression molding equipment manufacturer that listed on ChiNext.

"We walk alongside the world”, which means that we endeavor to facilitate Chinese machine technology keeping pace with the world, is Yizumi’s mission and development goal as well. In 2002, a group of elites in compression molding industry came together behind a common dream of improving China’s equipment manufacturing. For 12 years, they have upheld their initial decision and maintained steady business operation. Now they have developed Yizumi into a leader in compression molding equipment industry and one of the most promising compression molding equipment manufacturers in China. Today, they witness the milestone and historic progress in the development of Yizumi Company in SZSE together.

Enhance compression molding equipment manufacturing to replace imports

Compression molding equipment manufacturing is a strategic emerging industry that provides technical equipment for various sectors of the national economy, as well as an important guarantee of industrial upgrading, restructuring, technical progress and sustainable development. China is currently at a crucial stage of expanding domestic demand and accelerating infrastructure construction and industrial transformation and upgrading, which resulting in great demands for mid to high-end molding equipment.

Today, Yizumi has customers across major cities in China and more than 50 countries and regions. Overseas companies like NPI, MDC, Tyco Electronics and Siemens and domestic renowned manufacturers such as FAW, Dongfeng, Great Wall Motor, Hisense Kelon, Vanward, NVC and Sunwill are customers of Yizumi.

China’s high-end compression molding equipment still does not reach a world-class level. Some parts of precision products are mainly imported. Yizumi’s capital raised through IPO will be used for upgrading the manufacturing bases of injection molding machines and die casting machines and company’s technical center. Implementation of these projects will realize comprehensive upgrade of Yizumi’s technology, enhance the added value and core competitiveness of the company's products and increase domestic high-end molding equipment’s market share.

Further optimize the product mix and improve the company's profitability

Yizumi has maintained sound business operations. Despite the global financial crisis in 2008 that pummeled domestic manufacturing, Yizumi’s profitability rose against the recession, which was rare in the industry. Since 2009, Yizumi’s business has continued to grow and compound annual growth rate during 2011-2013 reached 16.59%.

Injection molding machines and die casting machines, to be produced with investment support from Yizumi’s IPO, are high-precision equipment that is in great demand in China’s appliances, automotive, packaging, medical equipment, electronics, aerospace and other industries. The equipment can substitute for some of the imports and create greater value for customers. Completion of the machine manufacturing bases will facilitate the rapid growth of product sales and income, strengthening Yizumi’s status in the industry and lay a solid foundation for further optimization of product mix and coordinated development of two products: injection molding machines and die casting machines.

Expand production capacity to meet the market demand and improve status in the industry

Nearly 330 million yuan that is raised in Yizumi’s IPO will used for construction of injection molding machine and die casting machine manufacturing bases, for the purpose of ramping up production capacity to meet the development needs in the next five to ten years. It is estimated that annual additional output of injection molding machine and die casting machine is respectively 2,300 units and 540 units, which eases the constraints on market development and sales growth due to insufficient productivity, and facilitates the increase of Yizumi’s market share in molding equipment industry home and abroad.

In addition to expansion of production capacity, Yizumi will purchase new machining equipment and testing equipment. So far, Yizumi has invested more than 160 million yuan in equipment to build its own precision manufacturing platform. For better products, Yizumi built a constant-temperature measuring and testing center to inspect accuracy of parts and calibrate the machining equipment. In addition, Yizumi set up a constant-temperature precision machining workshop for processing precise parts of all-electric injection molding machines. Precision and stability of the machine will be one of the most important competitive advantages of Yizumi in the future.

Further technical development and continuous innovation

Technical innovation is Yizumi’s current and future core competitiveness. Yizumi insists on taking the lead in technology and understanding the technical development trend to ensure continued competitiveness of the company's products. Yizumi has always paid attention to R&D and technical innovation and stuck to the development of mid to high-end products, and now the company gets the opportunity of consumption upgrade.

After going public, Yizumi will invest huge funds in technical transformation of the main business and R&D of new products. With the upgrade of technical center, the prospective study of new product, new process, new technology, new material and new equipment will be strengthened; and it will provides strong technical support for the renewal of products and formation of new profit growth point.

The money raised in Yizumi’s IPO will be invested in upgrading its technical center as well. This project will meet the needs of development, integrate the superior resources, enhance the innovation capability, ensure continued technical advantages of the products and guarantee the Yizumi's sustainable development.

Enhance global strategic layout

Yizumi has begun focusing on strategic markets in recent years and conducted global strategic layout through a series of actions. In 2011, Yizumi acquired all intellectual property of US HPM Company and established HPM North America Corporation that is made up of nearly 20 staff members and mainly engaged in sales and R&D. Establishing a company in the target market allows Yizumi to know the local market and seize the market opportunity. In 2013, Yizumi set up a technical service center in India. In 2014, in-depth development of new strategic markets proceeded in an orderly way. Currently, the brands “YIZUMI” and “HPM” are in good operating conditions. The construction of manufacturing bases and technical service centers in emerging countries goes well.  

Diversified development and attracting top talent

In early 2014, Yizumi at a price of over RMB 92 million successfully bid for the use right of the 92,257 sqm. land located at Zone A, Shunde Hi-tech Industrial Park. At present, Yizumi owns the use rights of land areas of over 300 thousand square meters, including production bases in Ronggui headquarters, Wusha and Wujiang. For the newly-gained land, Yizumi intends to develop HPM series heavy-duty die casting machines, HPM precision injection molding machines and auxiliary automated equipment for molding machinery there.

With the money raised in IPO in place, Yizumi’s business scale will get rapidly expanded; Yizumi will enjoy greater popularity and have stronger market impact. It will also help the company attract more outstanding management personnel and senior technical personnel, strengthen the management and technical team and lay a solid foundation for the sustainable development of Yizumi.
After undergoing multiple tests such as suspension of IPO review, financial verification and global financial crisis, Yizumi manages to go public. Taking the opportunity of IPO and listing on ChiNext, Yizumi, guided by its own development strategy, will raise funds to facilitate implementation of the projects, cement and strengthen its dominance in molding equipment industry, promote sustainable and sound development of the company and maximize the profit of investors.

About Yizumi

Founded in 2002, Yizumi is a national hi-tech enterprise engaged in the state-supported advanced equipment manufacturing industry and focusing on design, R&D, production, sales and service of molding machines. Injection molding machines, die casting machines and rubber injection machines are main products of Yizumi; and they are widely applied in household appliances, automotive, medical devices, packaging, 3C products and other fields. For years, Yizumi has been adhering to the aim “We endeavor to facilitate Chinese machine technology keeping pace with the world and provide global clients with better investment return and customer experience” and committed to constant innovation. Under the leadership of experienced top management and joint efforts of the staff, Yizumi rapidly develops into a well-known machinery manufacturer in China and shows huge potentials of growth as the company’s global strategy is implemented.