A company currently in the IPO process has caught the attention of market observers due to some intriguing data points. Wuhu Jiahong New Materials Co., Ltd., operating under the stock abbreviation Jiahong New Materials (874867.NQ), is being sponsored by Soochow Securities (601555.SH), with representative sponsors Xu Qiuming and Wang Haikuo.
The company's core products are heating cables, which serve a wide range of applications from industrial sectors such as oil and gas, chemicals, power energy, marine shipping, and biopharmaceuticals, to residential and commercial uses including insulation, anti-freezing, snow melting, and space heating.
In terms of financial performance, the first half of 2026 can be described as a period of significant growth. Prior to this, from 2023 to 2025, revenue growth was -1.73%, 15.17%, and 7.33% respectively. Net profit growth was even weaker, at -6.24%, -7.32%, and 6.35% during the same period, presenting a less than impressive picture. However, the first half of this year saw a breakout, with revenue surging by 60.19% and net profit skyrocketing by 129.52%.
According to the "Global Electric Heat Tracing Market Research Report" issued by Frost & Sullivan, the global electric heat tracing market was valued at $6.28 billion in 2024, and is projected to reach $10.66 billion by 2029, indicating considerable growth potential.
While this is the general overview, some granular details have come to light that warrant a closer look and discussion. The prospectus discloses that from 2023 to 2025, the company's headcount stood at 433, 438, and 443 employees respectively, showing minimal change with slight growth.
However, other public information available online suggests that Jiahong New Materials has engaged in more substantial recruitment drives. For instance, a recruitment bulletin published by Huaibei Normal University in September 2025 lists up to 23 open positions for Wuhu Jiahong New Materials, including as many as 10 electrical design engineer roles. This implies that if the company actually filled these advertised positions, the number would significantly exceed the net increase of just 5 employees in 2025, potentially pointing to a pattern of simultaneously hiring new staff while letting go of existing ones.
Moreover, the work pressure on employees, particularly frontline production staff, may be considerable. This data is tucked away in the "Response to Review Inquiry Letter," which shows that total production worker hours for 2024 and 2025 were 671,500 and 713,600 hours respectively. Assuming that all 267 production and technical personnel in 2025 were engaged solely in frontline production work, this equates to an average annual working time of 2,673 hours per person. Even when disregarding statutory holidays, this translates to over 51 hours per week. In practical terms, that means nearly 9 hours a day if working a six-day week. While not egregious and better than many large tech companies, the pressure is still substantial.
This brings to mind the widely discussed "humiliation and forced resignation" incident at Changzhou Xingyu Automotive Lighting Systems Co., Ltd. (601799.SH), which has been generating significant online buzz recently. The circumstances have been extensively debated, and personal perspectives on how nearly 300 graduates were left jobless and disheartened, alongside its high ESG ratings, have already been shared.
To be clear, this is not to suggest that Jiahong New Materials has engaged in similar misconduct. However, the data pattern of recruiting new employees while simultaneously reducing the workforce through layoffs is certainly thought-provoking.
Furthermore, what pushed Changzhou Xingyu to the brink was the decision by some dismissed employees to file complaints with the European Union, which triggered a larger uproar, especially since many of Xingyu's clients are European companies that place significant emphasis on supplier social responsibility. The latest development is that Volkswagen Group, a key automotive partner for Xingyu, has stated that an "investigation is ongoing," while emphasizing that respecting workers' legal rights and interests is a core principle for all its business activities, a standard that equally applies throughout its supply chain management.
It's worth noting that Jiahong New Materials has also disclosed its rapid expansion into international markets, with reports indicating that the company has established branches or offices in Canada, France, and Russia.