Venture(US:VEMLY) Sou Hu Cai Jing·2025-12-24 11:41Core Viewpoint - Torrens Precision Manufacturing (Jiangsu) Co., Ltd. has initiated its IPO process on the Shenzhen Stock Exchange, aiming to raise approximately 1.156 billion yuan for precision component manufacturing and R&D projects, as well as to supplement working capital [1][3]. Group 1: Company Overview - Torrens is a comprehensive service provider engaged in the R&D, production, and sales of precision metal components, focusing on high-performance parts for semiconductor equipment [3]. - The company’s product offerings include key process components, structural components, gas pipelines, and system assembly products, with capabilities extending to laser equipment [3]. Group 2: Financial Performance - The company reported steady revenue growth, with revenues of 283 million yuan in 2022, 291 million yuan in 2023, 610 million yuan in 2024, and 373 million yuan in the first half of 2025 [3]. - Net profit saw a significant decline in 2023 to 15.3 million yuan but is projected to rebound to 106 million yuan in 2024 [3]. Group 3: Customer Concentration Risk - Torrens faces notable customer concentration risk, with the top five customers accounting for 94.78% to 89.70% of sales during the reporting period [4]. - The primary customer, North Huachuang, increased its sales contribution from 129 million yuan in 2022 to 316 million yuan in 2024, representing 52.11% of total sales [4]. Group 4: Production Capacity and Utilization - The company’s production capacity utilization reached 97.57% in 2024 and remained high at 90.45% in the first half of 2025, indicating near-saturation of existing capacity [4]. - Torrens plans to use 880 million yuan of the IPO proceeds for precision component intelligent manufacturing projects and 770 million yuan for R&D center construction [4]. Group 5: Accounts Receivable and Inventory Management - Accounts receivable increased significantly from 52.19 million yuan at the end of 2022 to 269 million yuan by mid-2025, with the proportion of accounts receivable to revenue rising from 18.43% to 71.90% [5]. - Inventory values also grew from 81.6 million yuan to 173 million yuan over the same period, with inventory turnover declining from 2.68 times to 1.52 times [5][6]. Group 6: Related Party Transactions - Torrens engaged in related party transactions with entities controlled by its actual controller, with procurement amounting to 17.97 million yuan in the first half of 2025, representing 6.89% of operating costs [6]. - The company asserts that transaction prices are negotiated based on market levels, but there are risks associated with the effectiveness of internal controls [6].