Venture(US:VEMLY) Sou Hu Cai Jing·2025-06-24 14:15Core Viewpoint - Zhejiang Changcheng Mixing Equipment Co., Ltd. has decided to withdraw its IPO application for listing on the Shenzhen Stock Exchange's Growth Enterprise Market due to strategic adjustments and changes in the capital market environment [1] Group 1: Company Overview - Changcheng Mixing is a high-tech enterprise specializing in the research, production, sales, and service of mixing equipment, with customized solutions for various application fields [2] - The company reported revenues of 283 million, 287 million, 401 million, and 551 million CNY from 2019 to 2022, with net profits of 54.69 million, 59.09 million, 73.53 million, and 98.68 million CNY respectively [2] - In 2023, the company's net profit exceeded 100 million CNY, reaching 131 million CNY, while in 2024, it is projected to decline by 9.57% to 119 million CNY [2] Group 2: Financial Performance - The total revenue for the year ending December 31, 2024, is projected to be 683.09 million CNY, a 4.76% increase from 2023 [3] - The total cost of sales for the same period is expected to be 533.00 million CNY, leading to an operating profit of 161.69 million CNY, which represents a 13.96% decrease compared to the previous year [3] - The net profit for 2024 is projected to be 140.09 million CNY, reflecting a 15.41% decrease year-on-year [3] Group 3: R&D and Regulatory Scrutiny - The company faced scrutiny regarding a significant increase in R&D expenses in 2022, which raised questions about compliance with the "Three Innovations and Four New" standards [4][5] - R&D expenses surged to 20.10 million CNY in 2022, achieving a compound annual growth rate of 21.08% over three years, thus meeting regulatory requirements [6] - The increase in R&D costs was attributed to a rise in personnel and material costs, with a notable 96.38% increase in material expenses due to equipment upgrades [8] Group 4: Sales Model and Concerns - The company utilizes a sales model involving promotion service providers, which accounted for 41.93% of its main business income in 2022 [11] - Concerns were raised regarding the potential for commercial bribery and conflicts of interest, as many service providers are controlled by former employees of the company [13][14] - The company defended its sales model, stating that it aligns with industry practices and that there are no significant discrepancies in profit margins between sales through service providers and direct sales [12]