Contrarian Corpus
short seller research note initial thesis
2025-05-03 · 12 pages

ZJK Industrial ZJK

ZJK is a Chinese nuts-and-bolts maker fabricating a Nvidia AI partnership to pump its US-listed stock before pre-IPO insiders dump 60M shares (cost basis 7c) at the 3/31/25 lock-up expiry.

Thesis

ZJK Industrial is a 14-year-old Chinese precision-fastener manufacturer that listed on a US exchange in September 2024 at $5 per share. To justify a tech-stock multiple, ZJK rebranded its website as an 'AI components' supplier and issued a press release claiming a liquid-cooling collaboration with Nvidia — but Nvidia Investor Relations told White Diamond Research no such partnership exists, ZJK is absent from Nvidia's Partner Network locator, and Nvidia buys complete cooling systems from Vertiv and CoolIT, not nuts and bolts from third-party fastener shops. The 'North America Office' is a residential house in Port Moody, BC; more than 50% of revenue is round-tripped through related-party subsidiary PSM ZJK; and the balance sheet shows 'investments in subsidiaries' suspiciously equal to shareholders' equity. Pre-IPO insiders own 60 million shares acquired at 7 cents apiece, with the six-month lock-up expiring 3/31/25.

SCQA

Situation

ZJK Industrial is a Chinese precision-fastener manufacturer (nuts, bolts, stampings) that IPO'd on a US exchange on 9/30/24 at $5/share and subsequently doubled after announcing a Nvidia liquid-cooling collaboration.

Complication

The Nvidia partnership is fabricated — Nvidia IR denies it, ZJK isn't in the Partner Network, and Nvidia buys whole cooling systems from Vertiv/CoolIT, not fasteners; meanwhile >50% of revenue comes from related-party PSM ZJK.

Resolution

Sell or short ZJK before the 3/31/25 lock-up expiry, when 60 million pre-IPO insider shares acquired at 7 cents — versus a >$5 market price — become eligible to be dumped into the market.

Reward

White Diamond Research expects a 'bloodbath' as 60M near-zero-cost insider shares hit the market in under two weeks, collapsing the AI-narrative multiple back toward a commodity-fastener valuation worth a fraction of current price.

The three reasons

  1. 1

    Nvidia IR confirmed no partnership exists; ZJK is absent from Nvidia's Partner Network

  2. 2

    Over 50% of revenue is round-tripped through related-party subsidiary PSM ZJK

  3. 3

    60M pre-IPO shares bought at 7c unlock 3/31/25 — likely flood of insider selling

Primary demands

  • Stop misrepresenting a non-existent Nvidia liquid-cooling partnership
  • Disclose true related-party revenue dependence on subsidiary PSM ZJK
  • Clarify the suspicious accounting where 'investments in subsidiaries' equals shareholders' equity
  • Establish a real North American commercial office and respond to investor inquiries

KPIs cited

Pre-IPO insider share count and cost basis
60,000,000 shares held by existing shareholders at $0.07 average price vs. $5.00 IPO price
Related-party revenue share
Related-party sales $15.1M of $29.1M total revenue in 2023 (~52%); $13.6M of $24.8M in 2022 (~45%)
Lock-up expiry date
Six-month IPO lock-up expires 3/31/25
IPO terms
IPO on 9/30/24 at $5.00/share; stock >100% higher after 12/3/24 Nvidia-collaboration PR
Balance-sheet anomaly
'Investments in subsidiaries' of $14.47M (2022) and $21.70M (2023) exactly equals total shareholders' equity
Subsidiary stake
ZJK owns 49% equity in related-party PSM ZJK; CEO Ning Ding sits on PSM ZJK board
CEO growth claim
ZJK CEO Ning Ding claims '33% average annual growth' in rebuttal to Jim Cramer — WDR notes growth is mostly related-party

Pattern membership

Where this document fits across the library's 12 rhetorical / structural patterns. Orange cells are present in this deck; neutral cells are not.

Precedents cited

  • ZK International (ZKIN) — Chinese steel-pipe maker that pumped its stock via crypto and gaming pivots before fading

Composition what's on the 10 slides

Visual + textual elements counted across every slide in this deck. Hover a box for what that element is; click to see every slide in the corpus that uses it.

Slide gallery ·

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Pass-2 extraction may still be in progress for this deck.

Notes

Classic short-seller mosaic-of-evidence report: (1) Nvidia IR email screenshot, (2) Google Maps image of residential 'North America office', (3) Wayback Machine before/after of website rebrand to 'AI components', (4) Partner Network locator search showing ZJK absent vs Vertiv/Schneider present, (5) related-party financials. The 'before/after' framing is informal (Wayback Machine vs current site), not a formal trajectory chart. Author signature 'Ryker Jones' appears only inside a sample email template, so not treated as the report's author. Document classified as research_note (typical short-seller report format), not full_deck — it is prose-with-screenshots, not slide-based. Disclaimer/short-position disclosure not present in pages sampled, but WDR is a known short-bias firm. Catchy framing 'Boring Nuts and Bolts' in the title is a memorable hook.