Core Viewpoint - Zhejiang Kema Material Co., Ltd. (Kema Materials) is attempting to go public on the Beijing Stock Exchange after previous unsuccessful attempts in 2014 and 2023, with a new IPO application submitted on June 27, 2024 [2][3]. Financial Performance - Kema Materials has maintained annual revenue around 200 million yuan, with figures of 223 million, 202 million, 199 million, and 249 million yuan from 2021 to 2024, respectively [3][4]. - Net profit showed a "U" shaped trend, with 72.52 million, 41.65 million, 49.05 million, and 71.03 million yuan for the same years, indicating a significant drop in 2022 followed by recovery in 2024 [3][4]. - The company achieved a revenue growth of 25.16% and a net profit growth of 44.83% in 2024 [9]. Product Structure Changes - Kema Materials has shifted its product focus from T1 (wet-type) to T2 (dry-type) friction materials, with T1 sales dropping from 1.08 billion yuan in 2022 to 236,080 yuan in 2024, while T2 sales increased from 862 million yuan to 2.35 billion yuan in the same period [4][5]. - The transition was driven by the market's shift away from T1 products, which were phased out in 2023, and the introduction of more environmentally friendly and automated T2 products [4][5]. Market Dependency - Over 97% of Kema Materials' revenue comes from traditional fuel vehicles, with commercial vehicles accounting for more than half of its income [6][9]. - The domestic commercial vehicle market has shown a fluctuating decline in sales from 5.13 million units in 2020 to 3.87 million units in 2024 [6]. Customer Base and Competition - Kema Materials faces increasing competition in the aftermarket for dry clutch friction plates, with a notable decrease in customer loyalty among its top clients from 2021 to 2023 [8]. - The company’s major clients include Fuda Co. and Weichai Power, but revenue from these clients has been declining [8]. International Business Growth - Kema Materials' international revenue surged by 68.27% from 26.39 million yuan in 2023 to 44.41 million yuan in 2024, with a significantly higher gross margin compared to domestic sales [11][12]. - The company’s international clients are primarily located in Mexico, Iran, Egypt, and Russia, with Russia becoming a major contributor in 2024 [10][13]. Inventory Concerns - There are concerns regarding potential inventory accumulation among trade customers, particularly with VAFRI in Mexico, where the end-of-year inventory levels reached 71.25% of annual purchases in 2024 [16][17]. - This raises questions about the authenticity of Kema Materials' revenue growth and the possibility of revenue manipulation through inventory adjustments [16][17]. Construction and Financial Transactions - The company is under scrutiny for its financial transactions with construction firms involved in its new factory project, raising concerns about potential financial irregularities and the authenticity of its reported earnings [18][20]. - The construction project has not yielded the expected performance, and there are significant financial ties between Kema Materials and the construction company, which could indicate potential financial mismanagement [18][20]. Conclusion - Kema Materials is navigating a challenging landscape with significant shifts in product focus, market dependency on traditional fuel vehicles, and scrutiny over its financial practices as it seeks to establish itself on the Beijing Stock Exchange [2][3][9].

Core Viewpoint - Anhui Xiaoxiao Technology Co., Ltd. (Xiaoxiao Technology) is undergoing an IPO review on the Beijing Stock Exchange, with a focus on its financial practices and cash dividend distribution [2][3]. Group 1: Company Overview - Xiaoxiao Technology was established in 1995 with a registered capital of 44.77 million yuan, specializing in the R&D, production, and sales of precision components for automotive transmission and power systems [2]. - The actual controllers of the company are Xu Daoyi and Xu Maoyuan, who collectively hold 49.13% of the shares [3]. Group 2: Cash Dividend Distribution - The company has conducted two rounds of equity distribution from 2021 to 2024, with a total dividend of 9.85 million yuan in June 2021, where Xu Daoyi received 4.818 million yuan for tax payments related to share transfers [3][4]. - In December 2021, the company distributed a total of 15.67 million yuan, with Xu Daoyi receiving 7.665 million yuan, which was used to lend to the company [4]. Group 3: Financial Practices and Compliance - Xiaoxiao Technology confirmed that there are no abnormal cash flows to customers or suppliers, indicating no external fund circulation issues [5]. - The company was questioned about its reliance on loans from actual controllers for cash flow management, especially given the previous instances of fund occupation by the actual controller [6]. - The company conducted a thorough review of 13 bank accounts belonging to key personnel, including the chairman and general manager, to ensure no significant anomalies in fund flows [7][8].