On December 22nd, Good Electric Materials System (Suzhou) Co., Ltd. (hereinafter referred to as "Good Electric Materials") officially submitted its registration application, with Soochow Securities as the sole sponsor. It only took the company 6 months to advance from submitting the prospectus to the Growth Enterprise Market (GEM) of the Shenzhen Stock Exchange to the registration stage, marking a rapid IPO process.

Notably, prior to this crucial juncture of sprinting for listing, Good Electric Materials' shareholder camp has been filled with the relatives and friends of the actual controller Zhu Guolai—his wife, brother-in-law, former colleagues, and others have all become shareholders. Once the company successfully lists on the capital market, this "capital feast" will be shared by Zhu Guolai and his relatives and friends.

Compared with Good Electric Materials itself, its customer list is more well-known, including industry-leading enterprises such as CATL, Geely Auto, General Motors, and Xpeng Motors. In business cooperation, Good Electric Materials' core role is to provide new energy vehicle power battery thermal runaway protection components for these customers, deeply binding itself to the core links of the new energy vehicle industry chain.

Although China has firmly established itself as the world's largest new energy vehicle market, Good Electric Materials' business layout has shown a distinct trend of "going global", with its dependence on exports increasing year by year. However, changes in tariff policies in the international trade environment have impacted the company's overseas business, directly leading to a decline in procurement scale from foreign-funded customers. Taking General Motors as an example, in the first 9 months of this year, its procurement volume from Good Electric Materials was halved compared with the same period last year.

At the same time, the competitive pattern of the domestic market has also put pressure on Good Electric Materials. The company has weak pricing power in the domestic market, with product prices remaining at a low level for a long time, and the gross profit margin of its core business has been declining for many consecutive years. With export channels blocked on one side and domestic profit margins continuously compressed on the other, Good Electric Materials' path to breaking through the predicament is full of uncertainties.

Tracing back its development history, Good Electric Materials did not start in the new energy vehicle field but in the power industry. In April 2008, Shi Huirong and Zhu Xingquan jointly invested 1 million yuan to establish Good Electric Co., Ltd. (hereinafter referred to as "Good Electric"), the predecessor of Good Electric Materials, with Shi Huirong holding 60% of the shares and Zhu Xingquan 40%.

In the early days of its establishment, Good Electric focused on the power electrical insulation materials track, with key layouts in niche markets such as high-voltage generators and UHV power transmission and distribution. Relying on accurate market positioning, the company quickly opened up the situation: in 2009, it entered into strategic cooperation with France's Firo and the United States' Hexion; in 2010, it successfully entered the wind turbine blade structural adhesive market, and its business gradually got on track.

Unexpectedly, just as the enterprise was showing a good development momentum, the two founders chose to leave one after another. In March 2011, Shi Huirong transferred 9% of the company's registered capital held by him to Zhu Guolai at a price of 2.7 million yuan; in the same period, Zhu Xingquan transferred 20% of the registered capital to Zhu Guolai and Zhu Haofeng respectively, with a total transfer price of 12 million yuan. Public information shows that Zhu Guolai and Zhu Haofeng were former colleagues.

After the completion of this equity transfer, Zhu Xingquan completely withdrew from the shareholder ranks, and Zhu Guolai and Zhu Haofeng held 29% and 20% of the company's shares respectively. In November of the same year, Shi Huirong transferred the remaining equity again, transferring 41% of the registered capital to Zhu Guolai and 10% to Suzhou Guohao (a company controlled by Zhu Guolai), thus completely withdrawing from the company. After these two rounds of equity changes, Zhu Guolai's direct shareholding ratio soared to 70%, officially becoming the company's controlling shareholder.

It should be noted that in the above two rounds of equity transfers, the unit price of equity transferred by Shi Huirong and Zhu Xingquan was 1 yuan per registered capital. Notably, Shi Huirong is exactly Zhu Guolai's father. Behind this series of equity changes, there are still many questions to be answered: Was the company profitable at the time of the equity transfer? Why did the founders choose to transfer their equity at par and leave? Is there any undisclosed affiliated relationship between Zhu Xingquan, Zhu Guolai, and Zhu Haofeng? Are there any irregularities such as shareholding on behalf of others or interest transfer during the equity transfer process?

After fully taking control of the company, Zhu Guolai initiated business transformation and expansion. In 2016, the company achieved a key breakthrough in the R&D of thermal runaway protection for new energy vehicles; in 2018, it further accelerated the layout of new energy vehicle business by acquiring Mica Electric, a mica production enterprise. Currently, the company's products cover all levels of thermal runaway protection components such as battery cells, modules, and battery packs, successfully entering the core supply chain of new energy vehicles.

Taking advantage of the rapid development of China's new energy vehicle industry, Good Electric Materials successfully became a supplier to leading battery manufacturers and automakers such as CATL, Tesla, Geely Auto, and General Motors, with simultaneous growth in revenue and profit scales. Financial data shows that from 2022 to the first half of 2025, the company achieved operating income of 475 million yuan, 651 million yuan, 908 million yuan, and 458 million yuan respectively, and net profit attributable to parent company shareholders of 64.0586 million yuan, 100 million yuan, 172 million yuan, and 81.1605 million yuan respectively, showing a good trend of double growth in revenue and profit.

Benefiting from the steady growth of performance, Good Electric Materials' IPO process progressed smoothly. From submitting the prospectus in June 2025 to successfully passing the review on December 19th and submitting the registration on December 22nd, the whole process took only half a year. However, whether this impressive performance report card can ultimately win the recognition of the capital market remains to be tested by time.

Today, new energy vehicle-related business has become the core pillar of Good Electric Materials. As of the end of June 2025, new energy vehicle power battery thermal runaway protection components (hereinafter referred to as "power battery components") contributed 67.3% of the company's main business income, making them the absolute main source of revenue.

In recent years, China's new energy vehicle market has continued to expand, not only giving birth to local leading automakers such as BYD, NIO, Li Auto, and Geely, but also gathering globally leading battery enterprises represented by CATL, with broad market space. However, against this background, Good Electric Materials has chosen to increase its overseas market layout, with the proportion of exports continuing to rise.

Financial data shows that from 2022 to 2024, the company's export volume was 73.0453 million yuan, 186 million yuan, and 397 million yuan respectively, accounting for 15.50%, 28.82%, and 44.29% of the current main business income, achieving double growth in three years. Regarding the increase in the proportion of exports, Good Electric Materials explained in its reply to regulatory inquiries that the overseas new energy vehicle market is dominated by ternary lithium batteries, which have a more urgent demand for thermal runaway protection, and the company's overseas customers are mainly automakers, giving it relatively stronger pricing power.

In sharp contrast to the overseas market, the domestic power battery market is highly concentrated, with leading battery manufacturers such as CATL and BYD occupying a dominant position and having strong discourse power. Good Electric Materials also admitted in its prospectus that in the fierce domestic market competition environment, the company's pricing power is relatively weak.

This difference is directly reflected in product pricing and profitability. From 2022 to the first half of 2025, the export unit price of Good Electric Materials' power battery components (excluding molds) rose from 50,400 yuan/ton to 139,200 yuan/ton, and the gross profit margin increased from 33.43% to 40.53% simultaneously; during the same period, the domestic sales unit price remained around 50,000 yuan/ton, while the gross profit margin dropped from 32.53% to 25.63%, indicating a continuous narrowing of domestic profit space.

More seriously, operational risks in the overseas market have gradually emerged. Good Electric Materials' core overseas market is the United States, but frequent adjustments to U.S. tariff policies in recent years have significantly impacted the company's export business. In the first 9 months of 2025, the company's sales to General Motors were 75.6963 million yuan, a sharp year-on-year drop of 50.36%; in addition, sales to Company T (Tesla) and Volkswagen decreased by 0.55% and 33.90% year-on-year respectively.

Regarding the sharp decline in sales to General Motors, Good Electric Materials explained that it was mainly affected by two factors: first, changes in U.S. tariff policies in the first half of 2025 led General Motors to adjust the import locations of some components, resulting in delayed shipments in the second quarter, which directly dragged down the revenue in the first three quarters; second, General Motors had overly optimistic expectations for the growth of the new energy vehicle market earlier, and the supply chain inventory exceeded the actual market digestion capacity, leading to a short-term slowdown in the procurement rhythm of the supply chain.

To cope with the impact of tariff policies, Good Electric Materials has launched adjustments to its overseas layout. In June 2023, the company established a subsidiary in Mexico, focusing on the production and processing of new energy vehicle thermal runaway protection components; in November 2023, a U.S. subsidiary was established; in May 2025, a German subsidiary was launched, focusing on building an overseas marketing network to be responsible for the expansion of the North American and European markets and customer relationship management.

However, whether this series of adjustments to overseas layout can effectively hedge against the impact of tariffs and gain more overseas orders remains uncertain. From an industry perspective, the company's overseas layout is more of a "passive response"—the domestic new energy vehicle market is fiercely competitive, the company's profit space is severely squeezed, and it is difficult to further seize market share. The most typical example is that CATL was still Good Electric Materials' largest customer in 2022, dropped to the third place in 2023, and completely withdrew from the list of the top five customers in 2024 and the first half of 2025.

Regarding the domestic market layout, there are still many questions to be clarified for Good Electric Materials: Has the sales volume to CATL continued to decline? Does the company plan to expand more domestic customers to optimize its customer structure? Why is there a huge gap between domestic and foreign product prices? How to balance the development rhythm of domestic and foreign markets to reduce operational risks?

Today, Zhu Guolai still firmly controls the operational decision-making power of Good Electric Materials. Before the IPO application, Zhu Guolai directly held 46.76% of the company's shares, and indirectly held 2.09% of the shares through two enterprises, Suzhou Guohao and Suzhou Guofeng, with a total shareholding ratio of 48.85%. Currently, Zhu Guolai serves as the company's chairman and general manager, and is the company's controlling shareholder and actual controller.

In addition to Zhu Guolai himself, his family members and former colleagues are also deeply involved in the company's equity structure and operational management. Among them, Zhu Ying, Zhu Guolai's wife, directly holds 1.12% of the shares; Zhu Min, Zhu Ying's elder brother, holds 401,500 shares of the company; Zhu Haofeng, the second largest shareholder of the company, holds 10.65% of the shares, and his wife Qian Yuping holds 1.52% of the shares. Public information shows that Zhu Guolai and Zhu Haofeng once worked together at Wujiang Taihu Insulation Materials Factory for many years.

Notably, in March 2023, Good Electric Materials transferred 5% of the equity of its subsidiary Good瑞德 (Good瑞德) to Zhu Jianfeng at a price of 0 yuan. Data shows that Good瑞德 was established in June 2022, with its main business being copper-aluminum composite materials. It is a core platform for Good Electric Materials to expand into the new materials field, and its production line was gradually completed and put into operation in 2023. It is reported that Zhu Jianfeng and Zhu Guolai met through their hometown relationship, and the rationality of this 0-yuan equity transfer has also aroused market concern.

At the operational management level, family members also have a high degree of participation: Zhu Ying serves as the company's investment director, Zhu Haofeng as a director and deputy general manager, Qian Yuping works in the Administration and Human Resources Department, and Zhu Xingzhu, Zhu Guolai's mother, once worked in the company's Production Department. In addition, the company provided loans to Shi Huirong (Zhu Guolai's father), Zhu Xingzhu (Zhu Guolai's mother), and the couple Zhu Haofeng and Qian Yuping in the early days, with loan amounts ranging from 350,000 yuan to 2.4 million yuan.

If Good Electric Materials is successfully listed, these family members will jointly share the dividends of capital appreciation. In fact, before the company sprinted for the IPO, Zhu Guolai had already obtained considerable benefits through cash dividends. From 2022 to 2024, Good Electric Materials implemented cash dividends of 28.185 million yuan, 15.525 million yuan, and 31.05 million yuan respectively, with a total dividend amount of 74.76 million yuan in three years. Based on a rough calculation of Zhu Guolai's total shareholding ratio of 48.85%, he could receive more than 35 million yuan in dividends in three years.

Puzzlingly, after three consecutive years of cash dividends, Good Electric Materials plans to raise a large amount of funds to supplement working capital in this IPO. The prospectus shows that the company plans to raise 1.176 billion yuan this time, which even exceeds the company's current total asset scale. As of the end of June 2025, Good Electric Materials' total assets were 1.13 billion yuan, of which monetary funds were 271 million yuan, and there were no short-term loans, indicating a certain ability of capital turnover.

This series of financial arrangements has aroused many questions: If the company has capital needs for business expansion, why does it still continue to implement cash dividends? With the actual controller's shareholding ratio close to 50%, does continuous dividend distribution have the suspicion of transferring interests to the actual controller? Is the scale of this fund-raising exceeding the company's total assets reasonable? Is the operation of distributing dividends while raising funds to supplement working capital reasonable? Does it have the intention of "harvesting" the capital market?