Huaqin Technology (SH:603296) Sou Hu Cai Jing·2025-11-24 05:49Core Viewpoint - The China Securities Regulatory Commission (CSRC) has requested additional materials from Huqin Technology, a major player in the OEM sector, as part of its H-share listing application submitted to the Hong Kong Stock Exchange [1][2]. Group 1: Listing and Regulatory Requirements - Huqin Technology is required to clarify the specific situation regarding the pledged shares held by its actual controller and whether this could lead to a change in control, potentially violating regulations [2]. - The company must outline its listing plan, the intended use of raised funds, and confirm compliance with necessary approvals and procedures [2]. - The company is also asked to detail its involvement in smart driving assistance controllers and the specific applications of its products [3]. Group 2: Financial Performance - Huqin Technology's revenue for 2022, 2023, and 2024 is reported as 926.48 billion, 853.38 billion, and 1,099 billion respectively, with profits of 25.14 billion, 26.57 billion, and 29.16 billion [4]. - In the first half of 2025, the company achieved a revenue of 839.39 billion, marking a 113% year-on-year increase, with a profit of 19.1 billion, up 49.30% [4]. Group 3: Financial Health and Risks - The company's gross profit margin has declined from a peak of 10.9% in 2023 to approximately 7.4% in the first half of 2025 [7]. - Operating cash flow turned negative in the first half of 2025, with a net outflow of 15.22 billion, contrasting with the net profit [7]. - The company's total liabilities have significantly increased, with trade payables rising from 216.34 billion in 2023 to 469.32 billion by June 2025 [7][9]. - As of September 30, the company's asset-liability ratio stands at 75.3% [10].