Sou Hu Cai Jing·2025-08-25 03:57Core Viewpoint - Shanghai Balanshi Automotive Testing Equipment Co., Ltd. (referred to as "Balanshi") is preparing for its IPO on the Beijing Stock Exchange after successfully passing the review in June 2023, despite facing challenges such as patent litigation risks and slowing performance growth [1][3]. Company Overview - Balanshi is a manufacturer in the automotive maintenance equipment industry, focusing on the research, production, and sales of products like lifts, tire changers, and balancers [1]. - The company was established in January 2005 and has undergone multiple changes in ownership and control, with the current actual controllers being Cai Xilin and Sun Lina, a married couple [4][8][7]. Financial Performance - Balanshi's revenue for the years 2022, 2023, and 2024 was reported as 643 million, 794 million, and 1.057 billion yuan respectively, with year-on-year growth rates of 23.48% and 33.12% for 2023 and 2024 [12]. - The net profit attributable to the parent company for the same years was 30.04 million, 80.55 million, and 129.40 million yuan, with growth rates of 168.19% and 60.14% for 2023 and 2024 [13]. - The company reported a significant slowdown in growth for the first half of 2025, with revenue and net profit increasing by only 5.64% and 11.8% respectively [15]. Product and Market Dynamics - The main revenue source for Balanshi is the lift, which accounted for 47.58%, 46.97%, and 48.57% of total revenue in the last three years [15]. - The company has a high reliance on foreign sales, with over 75% of revenue coming from international markets, primarily through OEM partnerships [17][18]. - Balanshi's average selling price for its products has been declining, from 8,190.32 yuan per unit in 2022 to 7,492.15 yuan in 2024 [15]. Legal and Operational Risks - Balanshi is currently facing two pending patent lawsuits, with total claims amounting to 24.93 million yuan, representing 5.04% of the company's net assets [19][20]. - The company has experienced increasing accounts receivable, which reached 106 million yuan in the first half of 2025, indicating heightened collection risks [23][24]. Future Prospects and Funding - Balanshi plans to raise approximately 300 million yuan for projects aimed at upgrading and expanding production capacity, including a smart factory for lifting equipment [25]. - The company has a relatively low market share in its core products, with hopes to increase this share through the planned fundraising [25]. - Despite having sufficient cash reserves, the need for additional funding has raised questions about the necessity and rationale behind the expansion plans [26].