Core Viewpoint - Beijing Haocreat Ruitong Electric Equipment Co., Ltd. (Haocreat Ruitong) has made progress in its IPO process, with its review status changing to "submitted for registration" as of July 4, 2025, aiming to raise 477 million yuan through the issuance of up to 27.9 million shares for various projects including production line construction and working capital [1][3] Financial Performance - Haocreat Ruitong exhibits a "low cost, high gross profit" characteristic, with R&D, sales, and management expense ratios approximately 5 percentage points lower than the industry average from 2022 to 2024, yet its gross profit margin remains 2-3 percentage points higher than the industry average, reaching 25.67% in 2024 compared to the industry average of 23% [1][3][9] - The company's R&D expense compound growth rate is 36.69%, but its R&D expense ratio has consistently been between 3.09% and 3.73%, nearly 40% lower than the industry average of 5.54%-5.58% [5][9] - Sales expenses have increased in absolute terms, but the sales expense ratio has decreased from 5.01% to 4.06%, significantly lower than the industry average of 7.84%-9.17%, attributed to high sales concentration with State Grid subsidiaries [6][9] - Management expense ratios have remained between 2.13% and 2.52%, about half of the industry average of 5.26%-5.74%, raising questions about the sustainability of such cost advantages [7][9] Regulatory Concerns - A notable equity transaction involving the transfer of a subsidiary's shares for 200,000 yuan to the actual controller, followed by a zero-cost transfer two years later, has drawn scrutiny from the Shenzhen Stock Exchange, which has requested explanations regarding the transaction's rationale [1][10] - The underwriting institution, Changjiang Securities, has been criticized for significant oversights during the review process, including discrepancies in reporting over 60 key issues, raising concerns about its professional quality [2][11][12]