1st Zhuhai enterprise of 2023 hits GEM in Shenzhen

Zhuhai Kles Technology was listed on the Growth Enterprises Market (GEM) of the Shenzhen Stock Exchange on March 28, adding to the total number of Zhuhai's listed enterprises, which now sits at 48.

Kles Technology became the first of its kind in Zhuhai's Xiangzhou District to be listed this year, and it is also the first one in Zhuhai to be listed on the GEM in 2023.

The company is expected to invest a total of 384 million yuan ($56 million) for technology upgrades and expansion projects relating to high-end automatic precision equipment, innovation research and development centers, and further operation.

Established in December 2005 in Shangchong Area, Zhuhai Kles Technology is a national specialized, elaborative, characteristic, and emerging "little giant" (small and medium-sized) enterprise. This hi-tech enterprise offers small magnetic loop winding services, as well as the sale or rental of small magnetic loop winding equipment and automatic assembly lines for electronic components.

Production line of Zhuhai Kles Technology [Photo courtesy Zhuhai Media Group]

The enterprise's prospectus noted that its small magnetic loop winding services are its core business, and that its products will be applied in areas of network communications and consumer electronics for major customers, such as JWD Technology and U&T Electronics.

Of note, the company's automatic winding equipment and technology have been independently developed, and they have shown high production efficiency and good product consistency. Each machine can replace 20 skilled workers in daily production capacity.

Yu Zhijiang, chairman of Zhuhai Kles Technology, noted that the double-ring winding machine first launched by the enterprise is now leading in the industry and has helped the enterprise maintain its first place raking in market share rate.

As of March 2023, the enterprise has received 16 invention patents and 150 utility model patents. Its expenditure in R&D has accounted for around 7 percent of its total operation revenue.

In recent years, Xiangzhou District has implemented several preferential policies to support local hi-tech enterprises. The district will also help these enterprises to get listed, and will offer incentives of up to 10 million yuan ($1.5 million).

The district has distributed more than 90 million yuan ($13 million) to enterprises that have gained national, provincial, and municipal "little giant" titles to support their innovative development.

Officials of Zhuhai's Bureau of Finance said that they have been providing professional services to enterprises that are planning to be listed on the GEM by means of door-to-door services, 24-hour hotlines, lectures and symposiums.

The district has also formulated a cultivation system to help more enterprises become listed. As of now, the district has 13 listed enterprises, with four more expected to get listed this year. More than 400 others will be recognized as backup candidates.

Sun Cheng, deputy head of Xiangzhou District, said that 190 enterprises in the district won the title of provincial and municipal "little giant" enterprise, and that they will be the priority in further cultivation efforts.

Zhuhai currently has 39 enterprises listed on the A-share market, and 14 of them are listed on the GEM, which accounts for more than one-third of the city's total.

Wang Pan, deputy director of Zhuhai's Bureau of Finance, said that Zhuhai's major industrial clusters adhere to the strategic emerging industries that China encourages to be listed, implying that more Zhuhai enterprises will be listed on the GEM in the future.

Wang also added that the city will select enterprises for cultivation on the basis of big data, and that it will provide high-efficiency services for such enterprises throughout the whole listings process.