Jing Ji Guan Cha Wang·2025-12-12 00:37Core Viewpoint - Shenzhen Shangshui Intelligent Co., Ltd. is pursuing an IPO on the ChiNext board, backed by BYD, which plays a crucial role in its equity structure and business operations [2][6] Group 1: IPO Details - Shangshui Intelligent's IPO application was accepted on June 19, 2025, and is scheduled for review on December 16, 2025, with a fundraising target of approximately 587 million yuan [2] - The funds raised will be primarily used for the construction of a manufacturing base for high-precision intelligent equipment, a research and development center, and to supplement working capital [2] Group 2: Business Overview - Founded in 2012, Shangshui Intelligent specializes in micro-nano powder processing, precision measurement, mixing and dispersion, and functional film preparation, with applications in the new energy battery sector [3] - The company has established partnerships with major players in the new energy battery industry, including BYD, Yiwei Lithium Energy, and CATL, as well as international manufacturers like Samsung SDI and LGES [3] Group 3: Financial Performance - Shangshui Intelligent's revenue has shown significant growth over the past three years, with annual revenue of 397 million yuan, 601 million yuan, 637 million yuan, and 398 million yuan reported [3] - However, net profit has started to decline, with figures of 97.72 million yuan, 234 million yuan, 153 million yuan, and 93.71 million yuan for the same periods, indicating a 34.90% decrease in 2024 compared to 2023 [4][5] Group 4: Dependency on BYD - The company has a significant reliance on BYD, with sales to BYD accounting for 65.78% of its revenue in 2024 [6] - A strategic cooperation agreement was signed in November 2025, ensuring that BYD will prioritize purchasing from Shangshui Intelligent for specific equipment [6] Group 5: Cash Flow and Inventory Concerns - Shangshui Intelligent has reported negative net cash flow from operating activities in 2023 and 2024, despite positive net profits, indicating potential liquidity issues [5] - The company has a growing inventory balance, which poses risks related to capital efficiency and financial health [7] Group 6: Margin Pressures - The gross margin for Shangshui Intelligent has fluctuated, with rates of 48.10%, 57.08%, 48.72%, and 53.65% reported during the review period, indicating potential pressures from cost control demands from clients [8] - The company anticipates that increased competition and cost pressures could further impact its gross margins in the future [8]