Core Viewpoint - Oulun Electric is preparing for its IPO on the Beijing Stock Exchange, with scrutiny expected on its performance slowdown and the appropriateness of its comparable companies, which include major appliance giants like Gree and Midea [1][9]. Company Overview - Oulun Electric, established in 2009, focuses on the research, design, manufacturing, sales, and service of environmental regulation equipment, including dehumidifiers and mobile air conditioners [4]. - The company has a significant international presence, exporting to countries such as the UK, Germany, Italy, Japan, South Korea, the USA, France, and Spain [4]. Financial Performance - Oulun Electric has shown continuous high growth, with revenues of 972 million yuan, 1.232 billion yuan, and 1.623 billion yuan from 2022 to 2024, reflecting year-on-year growth rates of 26.8% and 31.8% for 2023 and 2024, respectively [5]. - However, growth is expected to slow in 2025, with projected revenues of 2.04 billion yuan, a 25.5% increase, and net profit of 230 million yuan, a mere 10.6% increase [5]. - The company’s revenue growth rate in the first half of 2025 is projected to drop to single digits, raising concerns about potential revenue recognition issues [5]. R&D and Profitability - Oulun Electric's R&D expense ratio was 3.6% in 2022, higher than Gree and Hisense, but still lower than most comparable companies [6]. - The company’s gross margin is at the lower end compared to its peers, raising questions about its competitive positioning despite its growth [6]. Comparison with Competitors - Oulun Electric has positioned itself against major players like Gree, Hisense, and Midea, claiming superior revenue growth rates in 2023 and 2024 [9]. - The company’s revenue growth significantly outpaced its competitors, with Oulun Electric achieving a 38.48% increase in the first half of 2025, while its peers experienced declines or minimal growth [9][10]. - The scale of Oulun Electric is much smaller, with 2024 revenues of only 1.623 billion yuan compared to Gree's 407.15 billion yuan, highlighting the vast differences in business scale and operational models [10]. Future Outlook - Oulun Electric anticipates continued revenue growth slowdown, projecting Q1 2026 revenues between 551 million and 609 million yuan, with net profits expected to grow only modestly [11]. - The company’s ability to maintain profitability and growth will be a focal point during the IPO review process [11].