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].