Breaking Down Tongling Jingda Special Magnet Wire Co., Ltd. Financial Health: Key Insights for Investors

From its founding in 1990 in Tongling, Anhui to its 2002 Shanghai Stock Exchange listing (ticker 600577), Tongling Jingda Special Magnet Wire Co., Ltd. has grown into a powerhouse-expanding product lines by 2010, spawning a bare-copper subsidiary in 2015, and commissioning a modern Tongling plant in 2020 that delivered a 1.598 billion yuan production value in 2024; with a market capitalization near 16.44 billion yuan (July 2025), 2.15 billion shares outstanding, a trailing P/E of 28.33, 29.54% insider ownership and 5.80% held by institutions, Jingda pairs operational scale-3,838 employees and advanced imported equipment-with innovation (a provincial R&D center and 22 patents, including 19 invention patents) to manufacture enameled aluminum, bare copper and specialty wires that generated 22.32 billion yuan in revenue in 2024 (up 24.67%) and a net profit rise of 31.72%, while strategic investments-an 18.15% stake in Shanghai Superconductor-position the company to monetize advances in high-temperature superconductors and serve fast-growing markets from automotive and new energy to AI servers and humanoid-robot related applications; explore how Jingda's ownership, mission, manufacturing footprint and revenue streams interlock to drive its trajectory

Tongling Jingda Special Magnet Wire Co., Ltd. (600577.SS): Intro

• Founded in 1990 in Tongling, Anhui Province as a manufacturer of special magnet wires.
• Listed on the Shanghai Stock Exchange in 2002 under ticker 600577.SS.
• By 2010 expanded product lines to include enameled aluminum wire, bare copper wire, and various specialty wires for industrial applications.
• In 2015 established Tongling Dingke Wire Co., Ltd., a subsidiary focused on high-grade bare copper stranded wires and oxygen-free copper rods.
• In 2020 launched a state-of-the-art facility in the Tongling Economic & Development Zone to boost copper-based magnet wire capacity.
• By 2024 the Tongling facility achieved a production value of 1.598 billion yuan.

• Publicly listed company (Shanghai Stock Exchange: 600577.SS) with institutional and retail shareholders.
• Operates through the parent company and subsidiaries such as Tongling Dingke Wire Co., Ltd.
• Typical shareholder categories: major institutional investors, retail investors, and corporate insiders (specific shareholder percentages vary by reporting period).

• Mission: to lead in high-performance magnet wire technology and supply chain integration for electrical, automotive, and industrial applications.
• Strategic priorities: product diversification (copper & aluminum magnet wires), quality upgrades (oxygen-free copper), capacity expansion, and downstream integration.

• Product sales: primary revenue from selling magnet wires (enameled copper/aluminum), bare copper products, specialty wires.
• Value-added products: oxygen-free copper rods and high-grade stranded wires command higher margins in specialty and automotive segments.
• Contract manufacturing & long-term supply agreements with OEMs provide recurring revenue and volume stability.
• Scale economics: expanded 2020 facility increased throughput, enabling higher production value (1.598 billion yuan in 2024) and improved fixed-cost absorption.
• Price drivers: global copper/aluminum raw material prices, exchange rates, and demand from EV/motor markets affect gross margins and profitability.

Tongling Jingda Special Magnet Wire Co., Ltd. (600577.SS): History

• Founded as a regional magnet wire producer; scaled to national supplier for automotive, industrial and energy sectors.
• Listed on the Shanghai Stock Exchange and pursued technology-driven growth, including R&D in HTS-compatible materials.
• Strategic equity investment: 18.15% stake in Shanghai Superconductor Technology Co., Ltd., which filed for an IPO in June 2025.

• High insider ownership (29.54%) suggests management and founding stakeholders retain significant control and alignment with long-term value creation.
• Modest institutional stake (5.80%) indicates selected external investor interest but room for increased institutional participation as technology plays mature.

• Mission: Supply high-reliability magnet wire and advance materials for electrification and energy-efficiency applications, including pathways to superconducting technologies.
• Core operations: metallurgical processing, insulated wire winding and coating, quality testing, and custom engineering for automotive motors, industrial drives, transformers and specialty superconducting components.
• Revenue streams:
  • Product sales of magnet wire (standard and high-performance grades) - primary revenue driver.
  • Customized engineering and value-added processing (coatings, varnishing, assembly) - margin-enhancing services.
  • Strategic equity income and potential upside from Shanghai Superconductor via dividends, equity valuation gains, and technology spillovers.

Tongling Jingda Special Magnet Wire Co., Ltd. (600577.SS): Ownership Structure

• Mission: To lead the magnet wire industry by providing high-quality products that meet the evolving needs of customers. See Mission Statement, Vision, & Core Values (2026) of Tongling Jingda Special Magnet Wire Co., Ltd.
• Innovation: Provincial-level technology R&D center; 22 patents (19 invention patents) supporting new enamel formulas, high-temperature wires and automated production processes.
• Sustainability: Investment in low-VOC enamels, waste-heat recovery and energy-efficient drying lines to reduce emissions and energy intensity.
• Customer-centricity: Long-term supply agreements with automotive component makers and electronics assemblers; focus on tailored alloys, varnish systems and logistical support.
• Operational excellence: Continuous improvement programs aiming to increase yield, reduce scrap and shorten lead times.
• Integrity & transparency: Corporate governance practices and disclosure aligned with SSE listing requirements to build trust with stakeholders.

• Major shareholders typically include a combination of state-affiliated investment vehicles, company founders/executives and public float; institutional investors hold a material portion of tradable shares.
• Board structure: independent and executive directors with technical and industry backgrounds; audit and nomination committees aligned with SSE rules.

• Core product lines: enamelled copper wire (ECW), high-temperature wire, and varnished round & rectangular conductors for motors and transformers.
• Revenue drivers: volume sales to automotive electrification (traction motors, e-machines), small appliance motors and distribution transformers; higher-margin specialty wires for high-temperature and high-speed motor segments.
• Value chain: in-house copper drawing, enamel coating, curing/drying, slitting/stranding and final testing-vertical integration reduces input cost and quality variation.
• Commercial model: combination of long-term supply contracts and spot orders; engineering collaboration for new product development adds service revenue and customer stickiness.

• Capacity expansion: targeted capex for new high-temperature enamel lines and automated coating towers to increase specialty-wire throughput.
• Sustainability capex: energy-efficiency upgrades (e.g., waste-heat recovery) and switching to lower-VOC enamel systems to meet tightening environmental standards.
• R&D spending: incremental annual R&D investment to commercialize new polymers and process automation-R&D intensity materially above small manufacturers in the sector.

Tongling Jingda Special Magnet Wire Co., Ltd. (600577.SS): Mission and Values

• Centralized corporate governance and finance functions coordinate strategy, procurement, and quality control across subsidiaries.
• Subsidiaries focus on product segments such as enamelled copper wire (ECW), enamelled aluminum wire (EAW), high-temperature wires, and specialty magnet wires for EV motors and industrial applications.
• Production, sales, and R&D units report through a unified management system to ensure consistency in standards and rapid deployment of new products.

• Domestic procurement covers a significant share of basic copper and aluminum to reduce lead times and logistics costs.
• Strategic imports of refined copper/aluminum and specialty coatings are sourced from major international suppliers when required to meet high-tech specifications.
• Inventory and hedging practices are used to mitigate commodity price volatility and ensure steady production.

• Automated drawing and coating lines for enamelled wire minimize variability and improve yield.
• In-line testing and QC systems-tensile, electrical insulation, and thermal-aging chambers-ensure product reliability for demanding applications.
• Lean manufacturing and continuous improvement programs reduce scrap and enhance throughput across production lines.

• R&D teams work on formulations for high-temperature enamels, thinner insulation coatings, and wires optimized for EV motors and high-frequency applications.
• Collaborations with universities and equipment suppliers accelerate technology transfer and pilot production.
• The company employs a skilled workforce of approximately 3,838 employees as of December 2024, spanning engineers, production technicians, QC specialists, and sales personnel.

• Key end markets include electric motor manufacturers, appliance OEMs, automotive electrification suppliers, and industrial equipment makers.
• Export channels cover Asia, Europe, and emerging markets; local agents and global distributors support after-sales and technical services.
• Custom specs and certifications (e.g., thermal class ratings, UL/IEC where applicable) enable penetration into regulated markets.

• Product sales: enamelled copper/aluminum wires sold by weight and by specification premium (high-temp, thin-wall, specialty alloys).
• Custom engineering and qualification: higher-margin income from co-development, custom coatings, and certification support.
• After-sales and technical consulting: supporting customers with winding processes, insulation performance optimization, and failure analysis.

• Product mix and specification premiums drive gross margins-higher-specification wires command materially higher ASPs than commodity-grade wire.
• Raw material costs (copper/aluminum) are a significant input cost; procurement strategy and hedging materially affect profitability.
• R&D and equipment investment support entry into higher-margin segments (EV, industrial automation), improving long-term revenue profile.

Tongling Jingda Special Magnet Wire Co., Ltd. (600577.SS): How It Works

• Primary product lines: enameled aluminum wire, bare copper wire, specialty wires (including high-performance copper-based conductors).
• Key customers/industries: household appliances, electronics, automotive, electric power, communication, and power tools.
• Strategic subsidiaries and investments: Hengfeng Special Conductor Co., Ltd. (high-performance copper-based wires for AI servers and data centers) and an equity stake in Shanghai Superconductor (high-temperature superconducting materials).

• Direct product sales of magnet wire across multiple diameters, insulation systems, and specifications for OEMs and component suppliers.
• Value-added processing and custom engineering for automotive electrification, power tools, and industrial motors.
• Investment income and potential upside from strategic holdings (notably Shanghai Superconductor).
• Subsidiary product lines (Hengfeng) tailored to data centre and AI server markets, capturing higher-margin specialty conductor demand.

• Economies of scale in wire drawing and coating lines to lower per-unit production cost.
• Product diversification (aluminum vs. copper, specialty conductors) to balance raw-material price exposure and serve high-growth segments.
• R&D and materials partnerships (e.g., superconducting materials via investment) to access next-generation applications.
• Vertical integration and subsidiary synergies that enable bundled offerings to large OEMs and data-center customers.

Tongling Jingda Special Magnet Wire Co., Ltd. (600577.SS): How It Makes Money

• Core revenue sources: insulated copper and aluminum magnet wire sales (standard and specialty grades), contract manufacturing for OEMs, and high-value R&D-driven product lines for new-energy and robotics applications.
• Value-added services: custom engineering, quality certification (automotive/aviation grades), and after-sales technical support for high-performance motor and coil applications.
• Strategic equity investments: minority stakes in upstream or adjacent technology firms to secure material/technology supply and upside from new-material commercialization.

• Domestic and international share: Jingda is recognized among China's top magnet-wire producers, supplying domestic OEMs and exporting to markets in Europe, Southeast Asia, and North America.
• Capacity & technology edge: sustained capital spending on automated winding, enamel-coating lines, and clean-room facilities combined with dedicated R&D centers positions the company to scale for higher-performance wire grades demanded by EV motors and high-speed automation.
• Product innovation: commercialization and mass production efforts for components tied to humanoid robotics and low-altitude economy (e.g., propulsion and control coils) underpin a differentiated roadmap versus commodity wire makers.

• Manufacturing scale reduces per-unit cost for common grades while premium specialty products command higher margins due to certification and tight tolerances.
• R&D-led product upgrades (higher-temperature insulation, finer gauges, superconducting-compatible conductors) enable premium pricing and long-term contracts with OEMs.
• Equity stakes in adjacent technology companies (e.g., the 18.15% holding in Shanghai Superconductor) create optionality: securing access to high-temperature superconducting materials and participating in the value uplift as those markets grow.

• Reinvesting operating cash flow into capacity expansion and automation to meet EV and robotics demand.
• Targeted M&A and strategic stakes to integrate upstream materials or downstream system suppliers, improving margin capture.
• Export expansion supported by international quality certifications and localized technical support to deepen penetration in Europe and North America.