IPO周报：鸿星科技撤单，关联方和关联交易被反复问询

Core Viewpoint - Hongxing Technology (Group) Co., Ltd. has terminated its IPO review after two and a half years of inquiry, primarily due to macroeconomic challenges and declining performance in the quartz crystal component industry [1][2]. Company Overview - Hongxing Technology specializes in the research, production, and sales of frequency control components such as quartz crystal resonators and oscillators, with applications in various sectors including communications, smart home, automotive electronics, consumer electronics, medical electronics, industrial control, and smart security [1]. - The company is ranked ninth globally in the quartz crystal component market, holding a market share of 3.08% in 2023 [1]. Financial Performance - The company experienced a decline in revenue and net profit in 2022, with revenue at 651.42 million yuan and net profit at 194.32 million yuan, representing year-on-year decreases of 22.00% and 4.64%, respectively [2]. - In 2023, revenue further declined by 16.87% and net profit decreased by 31.60%, with expectations for recovery in 2024 as the electronic industry stabilizes [2]. Family Business Characteristics - Hongxing Technology exhibits typical family business traits, with the Lin family controlling 87.92% of the voting rights [1][2]. - Key family members include Lin Honghe (Chairman), Lin Yuxin, Lin Yuxiang, and Lin Ruitang, indicating a strong familial influence in management [2]. Relationship with Taiwan Hongxing - Taiwan Hongxing, a former controlling shareholder and current major customer, has transitioned to being a distributor for Hongxing Technology, generating significant revenue from the company [3]. - The relationship raises questions regarding dependency and potential conflicts of interest, as Taiwan Hongxing has been the largest customer for several years [3]. Dividend Policy - Hongxing Technology has implemented substantial cash dividends, totaling 275.48 million yuan from 2021 to 2022, which accounted for 51.88% of the net profit attributable to shareholders [4]. - The dividends primarily benefit family shareholders, with a significant portion used for personal financial management and tax obligations [4].