Core Viewpoint - Hongban Technology has successfully passed the IPO review process, with plans to raise 2.057 billion yuan for a high-precision circuit board project, despite concerns over its financial practices and governance structure [2][3]. Group 1: Company Overview - Hongban Technology, established in 2005, specializes in the research, production, and sales of printed circuit boards (PCBs), focusing on the mid-to-high-end application market [3]. - The company has a significant market position in the HDI board segment, capable of mass-producing various interconnect HDI boards and IC substrates [3]. Group 2: Ownership Structure - The ownership structure of Hongban Technology is highly concentrated, with the controlling shareholder, Ye Senran, indirectly holding 95.12% of the shares, maintaining a dominant control even post-IPO [3]. - The Ye family is expected to retain a 71.34% ownership stake after the IPO, indicating a strong influence over company decisions [3]. Group 3: Financial Performance - The company reported revenues of approximately 2.205 billion yuan in 2022, increasing to 2.702 billion yuan in 2024, but experienced a 25% decline in net profit in 2023 [6]. - Despite the revenue growth, the net profit showed a "growth without profit" phenomenon, raising questions about operational efficiency [6]. - The company’s cash flow from operating activities decreased by 18.5% year-on-year, indicating potential liquidity issues [6]. Group 4: Dividend Policy - Hongban Technology distributed a total of 138 million yuan in dividends from 2022 to 2023, which accounted for 56% of its net profit during the same period [3]. - The increase in short-term borrowings from 226 million yuan at the end of 2023 to 379 million yuan at the end of 2024 raises concerns about the sustainability of its dividend policy [4]. Group 5: Research and Development - The company’s R&D expense ratio from 2022 to 2024 was 4.56%, 4.69%, and 4.63%, respectively, which is below the industry average [7]. - Despite claiming to produce advanced HDI boards, the low R&D investment raises questions about the validity of its technological claims [7].

Core Viewpoint - Hongban Technology's IPO application will be reviewed by the Shanghai Stock Exchange on October 31, despite concerns over environmental issues, family control, and performance risks associated with its pricing strategy [1][2]. Group 1: Environmental Concerns - Hongban Technology claims it is not a heavy polluter, contradicting the PCB industry's classification as a high pollution risk sector since 2014 [1][2]. - The company cites a 2013 document to support its non-polluting status, while competitors like Shennan Circuit and Huitian Technology acknowledge the industry's pollution risks and disclose their environmental measures [2]. Group 2: Family Control and Governance Issues - The controlling shareholder, Ye Senran, indirectly holds 95.12% of the company's shares, maintaining absolute control even post-IPO with a 71.34% stake [3]. - The company has engaged in multiple related-party transactions, including property leases and service procurements, raising concerns about governance and fairness in decision-making [3]. - High dividend payouts totaling 138 million yuan from 2022 to 2023, against a net profit of 246 million yuan, suggest potential issues with financial management, especially given the family's significant ownership [3]. Group 3: Financial Performance and Risks - Revenue growth from 2.205 billion yuan in 2022 to 2.702 billion yuan in 2024 is noted, but the quality of this growth is questioned due to significant fluctuations in net profit, including a 25% decline in 2023 [4]. - The company's strategy of "price for volume" is under scrutiny, with a 19.94% drop in the price of its core HDI boards in 2023 and a further 5.26% decline expected in 2024 [4]. - Research and development expenditures are below industry averages, with rates of 4.56%, 4.69%, and 4.63% from 2022 to 2024 [4]. - Accounts receivable have increased from 591 million yuan in 2022 to 873 million yuan in 2024, indicating weakened collection capabilities and raising concerns about the sustainability of revenue growth [4].