Himile Science And Technology(SZ:002595) Sou Hu Cai Jing·2025-09-02 08:30Core Viewpoint - The article discusses the upcoming IPO of Jiangsu Xihua New Energy Technology Co., Ltd. (Xihua Technology) and highlights concerns regarding its financial practices, particularly a significant cash dividend that has raised questions about the company's governance and financial health [2][4][5]. Company Overview - Xihua Technology specializes in the research, manufacturing, and sales of wind turbine gearbox components and injection molding machine parts, primarily serving the wind power and injection molding industries [2]. - The company plans to raise 14.98 billion yuan through its IPO, with major intermediaries including Guotai Junan, Lixin, and Jintiancheng [4]. Financial Practices - Prior to its IPO application, Xihua Technology distributed a cash dividend of 350 million yuan, which is nearly equivalent to the net profit of 365 million yuan for 2021 and 2022 combined, raising concerns about potential "money grabbing" [4][5]. - The majority of the dividend (approximately 349.65 million yuan) went to the controlling shareholders, indicating a lack of benefit to other investors [5]. Revenue and Profitability - Over 80% of Xihua Technology's revenue comes from wind turbine gearbox components, with a significant reliance on a few major clients, particularly the top client, Nankai Gear Group, whose revenue contributions increased from 48.91% in 2022 to over 60% in 2024 [3][13]. - The company's profitability has declined, with gross margins dropping from 35.84% in 2021 to 25.91% in 2024, reflecting challenges in maintaining pricing power amid rising costs and competitive pressures [3][13]. Market Position and Competition - Xihua Technology's revenue for 2022, 2023, and 2024 was reported at 942 million yuan, 908 million yuan, and 955 million yuan respectively, with a notable decrease in net profit from 179 million yuan in 2022 to 140 million yuan in 2024 [9]. - The company faces competition from larger firms in the industry, such as Rihua and Haomai Technology, which have more diversified product lines and greater market presence [12]. Product Pricing and Cost Trends - The average selling price of wind turbine gearbox components has decreased from 13,640.46 yuan per ton in 2021 to 11,264.45 yuan per ton in 2024, while costs have fluctuated, leading to a significant impact on profitability [14][16]. - The decline in selling prices has outpaced the reduction in costs, contributing to a decrease in gross margins for both wind turbine gearbox components and injection molding machine parts [16].