Venture(US:VEMLY) Sou Hu Cai Jing·2025-09-20 02:12Core Viewpoint - Hangzhou Gaote Electronics Co., Ltd. is preparing for an IPO on the ChiNext board, aiming to raise 850 million yuan, with concerns raised by regulators regarding product price fluctuations, declining gross margins, and high accounts receivable [2][3]. Financial Performance - Revenue is projected to grow from 346 million yuan in 2022 to 919 million yuan in 2024, with a compound annual growth rate (CAGR) of 63.31%. Net profit for the same period is expected to rise from 53.75 million yuan to 98.42 million yuan [3]. - Gross margins are declining, with rates of 28.37%, 26.53%, and 26.02% from 2022 to 2024, respectively. The gross margin for the core product, energy storage BMS modules, is expected to drop by 3.72 percentage points in 2024 [3]. Accounts Receivable - Accounts receivable surged from 185 million yuan in 2022 to 506 million yuan in 2024, constituting over 50% of revenue for three consecutive years, reaching 59.04% in 2024 [6][7]. - The company reported a decrease in accounts receivable turnover rates, attributed to lengthening payment cycles in the competitive energy storage industry [7]. Customer Dependency - The company is increasingly reliant on its top five customers, whose revenue contribution rose from 34.29% in 2022 to 45.41% in 2024. The largest customer, Artis, accounted for 21.61% of total revenue in 2024 [10][11]. Related Party Transactions - Prior to the IPO, the company sold a subsidiary at a premium exceeding 500% to related parties, raising questions about the fairness of the transaction and its potential impact on financial statements [13][15].