Core Viewpoint - Hongyuan Co., Ltd. (920018.BJ) is set to be publicly offered on the Beijing Stock Exchange, focusing on the research, production, and sales of electromagnetic wires, primarily used in high-voltage and large-capacity power transmission equipment [1][5]. Group 1: Company Overview - Hongyuan Co., Ltd. specializes in various types of electromagnetic wires, including switch wires, paper-wrapped wires, enameled wires, and composite wires, with a significant application in large power transformers and converters [1][5]. - The company has a diverse product line, with the main business segments in 2024 projected to be 78.98% for switch wires, 18.60% for paper-wrapped wires, 1.77% for enameled wires, and 0.66% for composite wires [5]. Group 2: Financial Information - The initial offering price is set at 9.17 yuan per share, with a market capitalization of 8.44 billion yuan [2]. - The company plans to raise funds for several projects, including 0.56 billion yuan for the intelligent digital upgrade of electromagnetic wire production lines and 0.79 billion yuan for the production of special electromagnetic wires for high-efficiency electric motors in new energy vehicles [4]. Group 3: Market Position and Clientele - Hongyuan Co., Ltd. has established itself as a key player in the power industry, recognized as a "Manufacturing Single Champion Demonstration Enterprise" by the Ministry of Industry and Information Technology of China [5]. - The company has a broad customer base, including major manufacturers like TBEA, Xidian Electric, and Hitachi Energy, and exports to countries such as Turkey, North America, and Vietnam [6]. Group 4: Cash Flow and Financial Challenges - The net cash flow from operating activities for Hongyuan Co., Ltd. showed negative figures of -244 million yuan in 2022 and -68 million yuan in 2023, with a slight recovery to 29 million yuan in 2024, indicating challenges in sustainable cash management [6]. - The company attributes cash flow issues to increased procurement costs, rising employee expenses, and discrepancies in settlement cycles with clients and suppliers [6].