Xin Lang Cai Jing·2025-12-15 10:13Core Viewpoint - Shenzhen Shangshui Intelligent Co., Ltd. is facing significant challenges in its IPO journey, primarily due to heavy reliance on a single customer, BYD, and declining market share in its core business segment [1][3][40]. Group 1: IPO Journey - The company's IPO application was initially accepted in June 2023 but was withdrawn in June 2024 due to concerns regarding customer dependency and technological advancement [3][42]. - After a six-month hiatus, the company re-engaged with Minsheng Securities to restart its IPO process, this time targeting the ChiNext board with a reduced fundraising goal of 5.87 billion [3][42]. Group 2: Market Position and Revenue - Over 90% of the company's revenue is derived from its efficient pulping equipment, which is crucial in the lithium battery production process [4][50]. - The market share of Shangshui Intelligent in the circular pulping equipment segment has decreased from 89% in 2022 to 60% in 2024, indicating increased competition [8][47]. - In the overall lithium battery pulping system market, the company holds only a 12.8% share, ranking third behind leading competitors [8][48]. Group 3: Customer Dependency - The company is heavily reliant on BYD, with 65.8% of its revenue expected to come from this single customer in 2024, up from 50% previously [14][53]. - The sales margin for products sold to BYD is significantly higher compared to other customers, raising concerns about the fairness of related transactions [15][55]. Group 4: Financial Performance and Challenges - The average execution cycle for core products has increased from 17.53 months in 2022 to 23.20 months in 2024, further extending to 28.63 months in the first half of 2025, reflecting delays in customer acceptance [24][63]. - As of the end of 2024, the company's inventory reached 885 million, accounting for nearly half of its total assets, with a low inventory turnover rate of 0.37 times [28][66]. - The company has only recorded a positive operating cash flow in 2022, with significant cash outflows in subsequent years despite profitability [68][70]. Group 5: Leadership and Governance Issues - The company's actual controller, Jin Xudong, has engaged in questionable financial practices, including transferring significant amounts of company funds to himself during critical financial periods [36][72]. - Despite the company's financial struggles, Jin has managed to cash out over 50 million, raising concerns about governance and the prioritization of personal gain over company health [36][73].