Core Viewpoint - Suzhou Lianxun Instrument Co., Ltd. is preparing for an IPO on the Sci-Tech Innovation Board, aiming to raise funds for projects in optical communication, automotive chips, storage, and digital testing, while facing structural pressures such as customer concentration and operational capital usage [1][10]. Financial Performance - The company's revenue increased from 214 million yuan in 2022 to 789 million yuan in 2024, with a significant turnaround in net profit from a loss of 38.07 million yuan in 2022 and 55.39 million yuan in 2023 to a profit of 140 million yuan in 2024 [2]. - Operating cash flow turned positive in 2024 at 80.79 million yuan but fell to -52.56 million yuan in Q1 2025, indicating volatility in financial performance [2]. - Return on equity (ROE) improved from -23.73% in 2022 and -12.44% in 2023 to 24.89% in 2024, reflecting sensitivity to market conditions and project delivery schedules [2]. Customer Concentration and Operational Risks - The company has a high customer concentration, with the top five customers accounting for 52.81% of sales in 2023, decreasing to 44.21% in 2024, but rising to 62.64% in Q1 2025, indicating reliance on a few key clients [4]. - Accounts receivable and inventory have increased significantly, with accounts receivable rising from 82 million yuan at the end of 2022 to 231 million yuan by the end of 2024, and inventory increasing from 71 million yuan to 334 million yuan in the same period [5]. Production and Sales Metrics - The semiconductor testing equipment's production and sales rate was low, with a production-sales ratio of 60.11% in 2024 and 68.78% in Q1 2025 for electronic measuring instruments, indicating a lengthy revenue recognition cycle dependent on customer acceptance [6][7]. Historical Governance Issues - The company has a history of shareholding proxy arrangements, which were resolved in 2018, and the current control structure involves key individuals holding a combined 54.79% of shares directly and indirectly [8][10].