Jiangshun Technology (001400): Strategic Value and Risk Assessment of Planned Investment Fund Establishment

Jiangshun Technology’s full name is Jiangsu Jiangshun Precision Technology Group Co., Ltd., which was listed on the main board of the Shenzhen Stock Exchange in April 2025 [1]. The company is a national high-tech enterprise focusing on the R&D, design, production and sales of aluminum profile extrusion dies and accessories, aluminum profile extrusion supporting equipment, precision mechanical parts and other products [2].

After more than 20 years of deep cultivation in the industry, Jiangshun Technology has become a leading enterprise in China’s aluminum profile extrusion die and extrusion supporting equipment industry. The company took the lead in drafting the first industry standard for aluminum profile hot extrusion dies in the non-ferrous metal industry, and was approved to establish an “Academician Workstation” and a “Provincial High-Precision Industrial Mold Digital Design Engineering Technology Research Center” [2]. As of December 31, 2024, the company and its subsidiaries have a total of 277 patents, including 61 invention patents. According to the certificate issued by the China Nonferrous Metals Processing Industry Association, the company’s related products have reached the domestic leading level in terms of manufacturing precision, comprehensive service life, stability and equipment automation [2].

According to the prospectus and periodic report data, Jiangshun Technology has maintained stable financial performance in recent years [2][3]:

Financial Indicator	2024	2023	2022
Operating Revenue (10,000 yuan)	113,647.63	104,257.36	89,242.58
Net Profit (10,000 yuan)	15,487.17	14,569.85	13,858.09
Basic Earnings Per Share (yuan)	3.44	3.24	3.08
Weighted Average Return on Net Assets	24.68%	31.33%	43.97%
Asset-Liability Ratio (Parent Company)	46.98%	41.56%	52.21%
R&D Investment as a Percentage of Operating Revenue	4.59%	4.92%	5.06%

The 2025 January-March operating performance forecast of the company shows that operating revenue is expected to be 28,000.00-29,100.00 ten thousand yuan, representing a year-on-year growth of 1.73%-5.72% compared to the same period in 2024, continuing the steady growth trend [2].

The industry the company belongs to falls under the “Mold Manufacturing (C3525)” sub-sector of “Special Equipment Manufacturing (C35)” under manufacturing according to the national economic industry classification [2]. Aluminum profile extrusion dies and accessories, as well as aluminum profile extrusion supporting equipment, are both applied to the aluminum profile manufacturing industry, including the production and manufacturing of construction aluminum profiles and industrial aluminum profiles.

Aluminum profile products have extremely wide and expanding application fields, mainly reflected in the following areas [2]:

• Building Decoration
  : Building doors and windows, curtain walls, decorative materials, etc.
• Transportation
  : Automotive lightweighting, rail transit, etc.
• New Energy
  : Photovoltaic frames, brackets, etc.
• Electronic Information
  : Electronic product casings, heat sinks, etc.
• Aerospace
  : Aerospace components, etc.

In addition, the company’s precision mechanical parts are mainly used in rail transit, new energy wind power and construction machinery industries [2].

---

On January 8, 2026, Jiangshun Technology issued a stock trading volatility announcement, disclosing that the company is planning to jointly invest in the establishment of an investment fund with professional investment institutions [4][5]. The key points of the announcement include:

1. Planning Stage
   : The company is currently planning to jointly invest in the establishment of an investment fund with professional investment institutions
2. Under Discussion
   : As of the date of the announcement, the specific plan for this external investment is still under discussion
3. No Formal Agreement Signed
   : No formal agreement has been signed by all parties
4. Uncertainty
   : The specific implementation and progress are still uncertain
5. Normal Operations
   : The company’s production and operations are normal, and no major changes have occurred in the internal and external operating environment [4][5]

Before the announcement was released, the company’s stock had achieved three consecutive daily limit-ups, with a large cumulative increase [4][5]. According to the criteria for identifying abnormal stock trading fluctuations, the company’s stock had a cumulative closing price increase deviation of more than 20% in two consecutive trading days, which constitutes abnormal stock trading fluctuations [5].

---

From a strategic perspective, Jiangshun Technology’s planned investment fund establishment has important industrial integration significance:

: By establishing an investment fund, the company can strengthen its layout in the raw material supply link to ensure stable supply of core raw materials such as steel, electrical, and hardware. The prospectus shows that raw materials account for approximately 65% of the company’s operating costs, and fluctuations in raw material prices have a significant impact on the company’s operating performance [2]. The industrial investment fund can help the company establish a more stable supply chain system.

: The company’s products are widely used in downstream fields, involving strategic emerging industries such as new energy vehicles, photovoltaics, and rail transit. Through fund investment, the company can:

• Lay out in advance downstream customer enterprises with growth potential
• Deepen strategic cooperative relationships with key customers
• Expand product application scenarios and market space

The industry the company is in is highly competitive, and market competition has gradually evolved from low-level price competition to comprehensive capability competition in terms of brand, quality, service, etc. [2]. The establishment of an investment fund can bring the following strategic opportunities for the company:

: Through the resources and capabilities of professional investment institutions, identify and invest in high-quality technology targets in mold manufacturing, precision processing, intelligent equipment and other fields to accelerate technology accumulation and iteration.

: Against the background of rapid development of downstream applications such as automotive lightweighting, rail transit, and new energy photovoltaics, the industrial fund can help the company lay out in advance innovative enterprises in related tracks to share the industry growth dividends.

As a newly listed company in April 2025, Jiangshun Technology has relatively limited experience in capital market operations. By cooperating with professional investment institutions to establish a fund, the company can:

1. Learn Professional Investment Experience
   : Leverage the investment management experience of the partners to improve the company’s capital operation capabilities
2. Reduce Investment Risks
   : Reduce the decision-making risks of direct investment through the due diligence and post-investment management capabilities of professional institutions
3. Amplify Capital Efficiency
   : Utilize the leverage effect of the fund to drive larger-scale industrial investment with a smaller amount of self-owned capital

In the capital market, the establishment of an industrial investment fund helps improve the company’s market valuation and investor expectations:

• Concept Theme Value
  : The industrial fund concept has high attention and valuation premium effect in the A-share market
• Growth Expectations
  : The industrial investment layout sends a signal of the company’s proactive expansion to the market, enhancing future growth expectations
• Institutional Investor Recognition
  : Cooperation with professional investment institutions helps improve the company’s recognition among institutional investors

---

: The investment fund matter is still in the planning and discussion stage, and the specific plan has not yet been formed, and no formal agreement has been signed by all parties [4][5]. This means:

• Core elements such as fund size, capital contribution ratio, and investment direction have not been determined
• There is a possibility that the plan discussion fails or all parties cannot reach an agreement
• Even if the plan is determined, it still needs to go through internal approval, external filing and other procedures
• The implementation progress may deviate significantly from expectations

As a listed company, any major investment matter must strictly comply with information disclosure requirements. The sharp rise in stock price during the planning stage may trigger the following risks:

• Insider Trading Investigation
  : Regulatory authorities may pay attention to whether there is information leakage or insider trading
• Disclosure Violation Risk
  : If subsequent information is significantly different from market expectations, the company may face regulatory inquiries
• Investor Relations Management
  : Effective communication with investors needs to be carried out within the compliance framework

Jiangshun Technology’s main business is precision equipment manufacturing, and there is no publicly disclosed industrial investment experience before [2]. This limitation brings the following risks:

• Investment Decision Risks
  : Lack of professional investment team and decision-making mechanism may lead to insufficient screening of investment targets
• Post-Investment Management Risks
  : The company’s ability to provide strategic synergy and management empowerment to invested enterprises is questionable
• Exit Risks
  : The exit channels and profit realization of fund investment are uncertain
• Professional Capability Dependence
  : Over-reliance on cooperative investment institutions makes it difficult for the company to form independent investment capabilities

In April 2025, the company raised a net amount of approximately 490 million yuan in its initial public offering, which is mainly invested in the aluminum profile precision industrial mold expansion construction project, aluminum extrusion complete equipment production line construction project and supplementary working capital [2][3]. Against this background, the establishment of an industrial fund requires attention to:

• Fund Source Issue
  : Whether the fund contribution will occupy the funds of the IPO-funded projects, affecting the development of the main business
• Fund Misappropriation Risk
  : If the fund investment fails, it may damage the interests of shareholders and the company’s financial health
• Opportunity Cost
  : Using funds for industrial investment may miss the market window for the expansion of the main business

: The company’s products are widely used in downstream industries, but if some industries experience a decline in prosperity due to factors such as international trade environment, market competition, and industrial policies, it will have an adverse impact on the company’s production operation and profitability [2]. Industrial investment also faces similar risks:

• Performance Fluctuation of Invested Enterprises
  : Invested enterprises may experience performance decline due to industry cycle impacts
• Valuation Bubble Risk
  : In the current market environment, the valuation of some emerging industries faces correction risks
• Restricted Exit Channels
  : If the market environment deteriorates, the difficulty and returns of fund exit will be affected

The company’s stock has achieved three consecutive daily limit-ups, and the market has reacted enthusiastically to the investment fund matter [4][5]. However, against the background that the specific plan is not yet clear, the stock price may face the risk of excessive reaction:

• Unmet Expectations Risk
  : If the final plan has a smaller scale or the investment direction is lower than market expectations, the stock price may experience a sharp correction
• Concept Speculation Risk
  : Under the current market style, some funds may use the concept for short-term speculation, exacerbating stock price fluctuations
• Chase-High Risk
  : Investors who buy at high prices face greater correction risks

---

Risk Category	Risk Level	Main Considerations
Plan Uncertainty Risk	High	Specific plan not finalized, no agreement signed
Information Compliance Risk	Medium	Stock price volatility triggers regulatory attention
Insufficient Investment Experience Risk	Medium	Lack of professional industrial investment capabilities
Fund Utilization Risk	Medium	Balance issue with IPO-funded project funds
Industry Cycle Risk	Medium	Impact of downstream industry fluctuation transmission
Excessive Stock Price Reaction Risk	High	Current increase is already substantial

:

• The current stock price has fully reflected market expectations, and attention should be paid to the correction risk after the good news is realized
• It is recommended to wait for the disclosure of the specific plan before making investment decisions
• Pay attention to the content of subsequent announcements, focusing on key information such as fund size and investment direction

:

• This matter can be tracked as a positive signal of the company’s strategic transformation
• Pay attention to how the company balances the development of its main business and industrial investment
• Evaluate the company’s governance-level risk control capabilities for investment risks
• Pay attention to the background and capabilities of the professional investment institutions

:

• There is still great uncertainty in this investment fund matter
• Investors should rationally view market concept speculation and avoid chasing highs and selling lows
• Pay close attention to subsequent announcement disclosures and make prudent investment decisions

---

Jiangshun Technology’s planned industrial investment fund establishment has multiple potential values such as industrial integration, technology layout, and industry-finance integration from a strategic perspective, which is in line with the company’s strategic development direction of extending downstream and strengthening supply chain control. However, the matter is still in the highly uncertain planning and discussion stage, and investors need to be alert to the following core risks:

1. Plan Uncertainty
   : The specific investment plan has not yet been formed, and the final implementation may differ significantly from market expectations
2. Insufficient Experience Risk
   : As a newcomer to industrial investment, the company faces capability challenges in investment decision-making, post-investment management and other aspects
3. Excessive Stock Price Reaction
   : Market expectations have been fully pushed up after three consecutive daily limit-ups, and there is correction pressure after the good news is realized

: It is recommended that investors maintain a prudent wait-and-see attitude and wait for the disclosure of the specific plan before making investment decisions. At the current stage, the risk of concept speculation is greater than the actual investment value, and investors should adhere to the value investment concept and avoid blind chasing of high prices.

---

[1] Eastmoney.com - Jiangshun Technology Company Profile (https://quote.eastmoney.com/sz001400.html)

[2] Prospectus of Jiangsu Jiangshun Precision Technology Group Co., Ltd. (https://pdf.dfcfw.com/pdf/H2_AN202504101654252455_1.pdf)

[3] Jiangshun Technology 2025 Semi-Annual Report (https://vip.stock.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=001400&id=11380064)

[4] Eastmoney.com - 3 Consecutive Daily Limit-Ups for Jiangshun Technology: Planning to Jointly Invest in the Establishment of an Investment Fund (https://finance.eastmoney.com/a/202601083612960316.html)

[5] Sina Finance - 3 Consecutive Daily Limit-Ups for Jiangshun Technology: Planning to Jointly Invest in the Establishment of an Investment Fund (https://finance.sina.com.cn/jjxw/2026-01-08/doc-inhfqyhp6635291.shtml)