SINGAPORE (Aug 12): Jiangxi Jiangling Chassis Co., a China-based manufacturer of car parts, has lodged its preliminary prospectus for a planned listing on the SGX Mainboard.

The company is the first seeking listing under the direct listing framework that was established between Singapore and China back in November 2013. Previous China-based companies listed in Singapore were structured in such a way that they are subsidiaries of entities incorporated in offshore regimes like British Virgin Islands.

This state-owned enterprise, based in Jiangxi province, is in turn a subsidiary of Jiangling Motors Co Group (JMCG), described as the largest mid- to high-end light automobile manufacturer in the province. JMCG is also the largest customer of Jiangxi Jiangling Chassis Co.

Besides its parent company, Jiangxi Jiangling Chassis also supplies its products to both domestic and overseas customers such as Zhengzhou Nissan, Beiqi Foton, Dongfeng Auto and Xiamen King Long, as well as Japan’s Isuzu Motors, Taiwan’s China Motor Corporation and Turkey’s Karsan.

For FY14, the company posted earnings of RMB104.5 million ($22.8 million), up from RMB77.6 million in FY13. Revenue in the same period was RMB1.4 billion, up from RMB1.16 billion. In the most recent 1Q15, the company’s net profit was RMB21.1 million on revenue of RMB350 million.

The company wants to raise funds to expand its production facilities. Specifically, it is planning an RMB260 million investment to build a new 23,000 sqm facility that will help increase its annual production capacity from 600,000 sets of axles to one million sets.

For the IPO, which is arranged by China International Capital Corporation (Singapore), the company plans to offer nearly 18.3 million new shares.