In the wave of import substitution for functional polymer materials, Jiangsu Srida Material Technology Co., Ltd. has achieved rapid performance growth through technological breakthroughs in OLED photoelectric process precision protection materials, becoming a notable "little giant" enterprise specializing in specific sectors within the prospective IPO queue for the Beijing Stock Exchange.

Focusing on polymer-coated functional films as its core business, Srida has deeply cultivated two high-growth sectors: display panels and new energy batteries. It has successfully entered the supply chains of leading enterprises such as Visionox, BYD, and CATL. Its growth trajectory, featuring a tripling of revenue and a sixteen-fold increase in net profit over three years, is particularly impressive.

In 2025, Srida continued its growth momentum. However, its heavy reliance on a single major customer, historical internal control deficiencies, and the justification for its high gross margins have become the focal points of two rounds of inquiries from the Beijing Stock Exchange, adding uncertainty to its IPO journey.

**1. Industry Landscape and Company Core Logic**

Functional polymer materials are key foundational materials for industries like electronics manufacturing, new energy, and display panels. This sector is characterized by high technical barriers, long certification cycles, strong customer stickiness, and significant potential for import substitution.

Specifically, photoelectric process protection materials and new energy battery functional materials have long been dominated by foreign manufacturers like Japan's Nitto Denko and South Korea's Innox, due to rapid downstream technological iteration and stringent quality control standards, making it difficult for local companies to achieve breakthroughs.

The industry currently exhibits two core trends: 1. Deepening import substitution in display panels: OLED has become the mainstream technology, with domestic panel manufacturers accelerating capacity expansion. This has spurred a surge in demand for localized, low-cost, and rapidly responsive process protection materials, creating a substitution window for local enterprises. 2. Growing rigid demand for new energy battery materials: The shift towards higher energy density and safety in power batteries is driving continuous increases in demand for functional materials like thermal conductive, insulating, and shielding materials, with the local supply chain being a primary beneficiary.

Srida's core growth logic lies in precisely positioning itself within these two high-growth sectors, building competitive barriers through technological breakthroughs and strong customer relationships.

**(1) Product Portfolio: Dual-Sector Drive, OLED Protection Materials as Core** The company's products are clearly structured into three main categories, all in promising sectors: * Photoelectric Process Precision Protection Materials (Core): Upper and lower protective films for OLEDs, used for protection during panel manufacturing processes. This is the company's primary growth driver, with gross margins exceeding 50%. * New Energy Battery Module Functional Materials: Thermal conductive, insulating, and shielding materials, which have entered the supply chains of BYD and CATL. * Electronic Multi-functional Composite Materials: Adhesive, shielding, and wave-absorbing materials covering the consumer electronics field.

**(2) Technical Barriers: Self-Developed Polymer Coatings, Yield Improvement for Cost Efficiency** The company masters three core technologies: precision coating, polymer formulation, and high-precision die-cutting. It has independently developed specialized OLED protective films, breaking the foreign monopoly. Through process optimization, AOI automatic inspection, and bringing outsourced processes in-house, the company has continuously improved product yield. This has allowed it to maintain high gross margins despite declining average selling prices. It is recognized as a national-level "Little Giant" specializing in specific sectors and a high-tech enterprise, holding multiple invention patents.

**(3) Customer Barriers: Deep Ties with Leaders, High Certification Thresholds** * Display Sector: Core customer Visionox contributed 50.91% of revenue in 2024. Srida is its core supplier for OLED protective films, with stable cooperation and high certification barriers. * New Energy Sector: Has entered the supply chains of BYD and CATL, representing high-quality customers with significant growth potential. * Customer Characteristics: All are industry leaders with certification cycles of 1-3 years, high replacement costs, and strong cooperative loyalty. However, this results in high customer concentration.

**(4) Development Stage: High-Growth Period, Critical IPO Phase** Revenue grew from 96 million yuan in 2022 to 365 million yuan in 2025, while net profit after non-recurring items surged from a loss of 590,000 yuan to a profit of 89.95 million yuan. Its IPO application was accepted by the Beijing Stock Exchange in June 2025, has undergone two rounds of inquiries, and is currently in a critical phase of the listing review process.

**2. Key 2025 Financial Data**

All data is sourced from Srida's 2025 annual report, accurately reflecting its operational picture: (1) Core Profitability and Operational Metrics 1. Total Operating Revenue: 365 million yuan, a year-on-year increase of 16.39%. 2. Net Profit after Non-Recurring Items: 89.95 million yuan, a year-on-year increase of 9.82%. 3. Comprehensive Gross Margin: 43.37%, a slight increase year-on-year. 4. Net Cash Flow from Operating Activities: 102 million yuan, a year-on-year increase of 66.71%, indicating excellent profit quality.

(2) Brief Data Interpretation In 2025, the company maintained growth in both revenue and net profit after non-recurring items. Although the growth rate slowed compared to previous periods, it remained high, benefiting from stable orders from Visionox and expansion in the new energy business. The high gross margin was primarily due to improved yields for core products and effective cost control. Net operating cash flow increased significantly, exceeding net profit, demonstrating strong collection ability and high profit quality. The asset-liability ratio was only 16.72%, with no interest-bearing debt pressure, indicating extremely low financial risk.

**3. Key Regulatory Inquiry Issues**

Srida's IPO application was accepted in June 2025. The first round of inquiries occurred on July 16, and the second round on January 13, 2026. Regulators focused on issues including customer dependency, high gross margins, internal controls, and revenue recognition. The following lists only the core questions, without interpretation or extension:

(A) First Round Inquiry Core Questions: 1. The actual controllers, father and daughter Gao Chao and Gao Ya, hold 46% of shares. Is this identification accurate? Were there any shareholding arrangements or undisclosed利益安排 in equity changes? 2. Revenue from Visionex exceeds 50%. Is this customer dependency significant? What is the impact of Visionox's continuous losses on the stability of cooperation? 3. Gross margin for photoelectric process protection materials exceeds 50%, far above peers. Is the high gross margin genuine and reasonable? Is it sustainable? 4. Historical internal control irregularities existed, including loan transfers, related-party fund occupation, third-party salary payments, and bill change practices. Have rectifications been effective? Are internal controls now effective? 5. Revenue is recognized using a "reconciliation model," with timing differences between customer receipt and reconciliation, and revenue from third-party warehouses. Is there any period-shifting of revenue? 6. Overseas revenue declined from 13.11% to 3.06%. Reasons for the decline? Authenticity and results of end-customer verification? 7. Are core technologies independently developed? Gap compared to competitors like Nitto, Innox? Risks related to technical staff non-compete agreements and intellectual property? 8. Rationale for raising 400 million yuan for the "Annual Production of 15,000 Tons of Functional Film Materials" project? Capacity absorption plans? Environmental impact assessment compliance? 9. Visionox indirectly acquired a 0.75% stake in 2024 but was not classified as a related party. Is this reasonable? Is it an attempt to avoid related-party transaction disclosures?

(B) Second Round Inquiry Core Questions: 1. Visionox continues to report significant losses. Impact on cooperation stability and Srida's sustainable performance? Quantitative demand assessment? Comparison of competitive advantages/disadvantages? 2. Core drivers of high gross margins? Data supporting yield improvements? Rationale for maintaining margins despite price declines? Possibility of costs being borne off the books? 3. Compliance of revenue recognition timing? Transfer of control under the third-party warehouse and reconciliation models? Risk of revenue period-shifting or fabrication? 4. Actual controllers' loans to related enterprises; some related enterprises are loss-making. Risks of fund occupation,利益输送, or off-balance-sheet循环? 5. Feasibility of absorbing capacity from the fundraising project? Impact of new depreciation on profits? Progress and compliance risks of the environmental impact assessment? 6. Shareholder acting-in-concert relationships; completeness of VIE agreement清理? Any undisclosed special arrangements?

**4. Core Operational Strengths**

1. Solid Technical Barriers, Pioneer in Import Substitution: Masters core technology for OLED process protective films, breaking foreign monopoly. Product performance meets international standards with significant price advantages. Recognized as a national-level "Little Giant," with a clear technological moat. 2. High-Quality Customer Resources, Strong Growth Certainty: Deeply embedded with industry leaders like Visionox, BYD, and CATL. High customer certification barriers and stable cooperation. Both OLED and new energy sectors are high-growth, providing ample medium to long-term growth momentum. 3. High Growth, Excellent Financial Fundamentals: 2025 revenue and net profit after non-recurring items grew by 16.39% and 9.82% respectively. Gross margin exceeded 43%. Operating cash flow was 102 million yuan. Asset-liability ratio was only 16.72% with no interest-bearing debt, indicating strong profit quality and financial safety. 4. Sectors Align with Policy, Large Import Substitution Potential: Display panels and new energy batteries are national strategic industries. Import substitution for functional film materials is accelerating. As a leading local enterprise, the company fully benefits from policy and industry tailwinds.

**5. Risks Requiring Attention**

1. High Customer Concentration, Operational Stability Concerns: Over 50% revenue reliance on Visionox represents significant single-customer dependency. Visionox's continuous substantial losses pose a risk; if its operations deteriorate, orders are cut, or the supply chain is adjusted, Srida's revenue and profit would be directly impacted, indicating weak risk resistance. 2. Sustainability of High Gross Margins Needs Verification; Profit Squeeze from Competition: Core product gross margins exceed 50%, far above peers. While yield improvements support cost reduction, intensifying competition and declining prices pose risks. If technological shifts or new entrants emerge, high margins may be unsustainable, pressuring profit growth. 3. Historical Internal Control Deficiencies; Compliance Standards Need Strengthening: Past irregularities including loan transfers, related-party fund occupation, and third-party salary payments. Although the company claims rectification, these historical issues remain a key regulatory focus. Internal control effectiveness and standardization could impact the IPO review. 4. Revenue Recognition Model Raises Questions; Financial Authenticity Needs Verification: Use of a "reconciliation point" model, with timing differences and third-party warehouse revenue. Regulatory questions about potential period-shifting or fabrication of revenue require robust evidence for compliance. 5. Fundraising Project Capacity Absorption and Competition Risks: Plan to expand capacity by 15,000 tons of functional film, while existing capacity utilization is not saturated. Risk of idle capacity and profit erosion from depreciation if market expansion falls short. Faces competition from both foreign players like Nitto/Innox and domestic peers. 6. Technological Iteration and Intellectual Property Risks: Rapid iteration in display technology risks product obsolescence if R&D fails to keep pace with next-generation production lines. Core technical personnel previously worked for US company 3M, posing potential risks for IP and non-compete disputes.

**6. Comprehensive Assessment**

Srida is a high-quality growth company in the functional polymer materials field. Leveraging technological breakthroughs and ties with leading customers, it has achieved consecutive periods of explosive growth. Its financial fundamentals are solid, and its target sectors have promising prospects, making it a typical representative of import substitution.

However, its IPO faces several critical tests: high reliance on a single major customer, the rationale for high gross margins, and historical internal control issues. These are key focus areas for the Beijing Stock Exchange's review. If the company's responses fail to adequately address regulatory concerns, it could affect the IPO approval timeline.

From a medium to long-term perspective, if Srida can effectively promote customer diversification, continuously strengthen R&D, and improve internal governance, it still possesses significant growth potential, supported by the dual tailwinds of the OLED and new energy sectors. In the short term, close attention should be paid to the progress of its IPO inquiry responses and the operational status of Visionox.