Core Viewpoint - Nanjing Qingtian Quanshui Information Technology Co., Ltd. (Qingtian Quanshui) has submitted its listing application to the Hong Kong Stock Exchange, planning to go public on the main board, while also distributing a significant cash dividend prior to the listing, raising concerns about its financial health and operational performance [1][2][14]. Financial Performance - The company has declared a cash dividend of 230 million RMB, which accounts for 144.65% of its net profit during the same period, indicating a potential depletion of its retained earnings [1][6]. - As of the end of 2024, the company's undistributed profits will be only 14.6 million RMB, suggesting that most of its profits accumulated over 13 years have been exhausted [1][6]. - Revenue growth has significantly slowed, with 2024 and the first half of 2025 showing revenue growth rates of only 6.39% and 4.50%, compared to 34.70% in 2023 [15][17]. - The net profit for 2024 and the first half of 2025 has dropped by 26.43% and 74.87%, respectively, primarily due to increased system integration costs and declining gross margins [17]. Client Base and Market Position - The number of enterprise clients has decreased from approximately 34,013 in 2022 to 27,260 in 2024, indicating a declining trend in client acquisition [17]. - Qingtian Quanshui ranks first in the Chinese cross-border enterprise intelligent tax solutions market with a market share of 1.7% and second in the broader digital solutions market with a 1.2% share [2]. Shareholder Actions - Prior to the listing application, three early shareholders collectively cashed out 80 million RMB, raising questions about the timing and motivations behind the dividend distribution and the IPO [3][14]. - The actual controller, Xin Yingmei, holds approximately 78.17% of the company's shares, with significant portions of the dividend expected to flow to her [2][4]. Regulatory Concerns - The company’s dividend distribution practices may violate new regulations that classify "clearance-style" dividends as negative listing behaviors if they exceed certain thresholds [7][8]. - Qingtian Quanshui has reached the threshold for "clearance-style" dividends, which could impact its IPO prospects [8]. Debt and Liquidity - As of June 30, 2025, the company has a total of 127 million RMB in payable dividends and 177 million RMB in broad monetary funds, indicating a potential liquidity crisis post-dividend distribution [9][10]. - The company has recently taken on a 10 million RMB bank loan, which must be repaid within a year, raising concerns about its financial stability [13]. Operational Challenges - The gross margin has declined from 83.5% in 2022 to 67.3% in the first half of 2025, reflecting operational inefficiencies and increased costs [17]. - The company’s net profit margin has plummeted from 94.70% in 2023 to 11.30% in the first half of 2025, indicating a severe drop in profitability [17].

Core Viewpoint - The company Jing Shi Ce Kong has submitted an IPO application to the Hong Kong Stock Exchange, with plans to raise funds for capacity expansion, R&D, marketing, potential acquisitions, and general corporate purposes. However, there are concerns regarding the credibility of its financial information due to significant discrepancies in its financial disclosures and the recent sell-off by a major shareholder [1][3][5]. Group 1: IPO Details - Jing Shi Ce Kong has submitted its IPO application to the Hong Kong Stock Exchange on September 29, 2025, with CICC and浦银国际 as joint sponsors [1][5]. - The company plans to raise approximately 700 million yuan through this IPO [5]. - Prior to the IPO submission, Blue Lake Capital, holding 9.01% of the company, sold its shares at a price significantly lower than the last funding round valuation, raising questions about the company's valuation [1][5]. Group 2: Financial Discrepancies - There are major discrepancies in the financial disclosures between the company's applications to the Shenzhen Stock Exchange and the Hong Kong Stock Exchange, with a difference of 233 million yuan in total liabilities and a 23.07 percentage point difference in the debt-to-asset ratio for 2022 [1][17]. - The company's revenue is projected to grow from 568 million yuan in 2022 to 863 million yuan in 2024, with a compound annual growth rate of 23.3%. However, a significant decline of 29.93% in revenue was reported for the first half of 2025 compared to the previous year [9][10]. Group 3: Ownership and Control - The founder and CEO Wang Lei holds 30.27% of the company, making him the largest shareholder, while CICC, through its investment arm, holds 11.85%, raising concerns about potential conflicts of interest as CICC is also a sponsor for the IPO [7][9]. - The company has undergone five rounds of financing since its establishment in 2011, raising over 300 million yuan, with a post-investment valuation of 1.6 billion yuan as of the D round in December 2022 [3][5].

Core Viewpoint - Jing Shi Measurement and Control has submitted an application for listing on the Hong Kong Stock Exchange, with CICC and Puhui International as joint sponsors [2] Group 1: Financial Information and Fundraising - The company plans to raise funds for capacity expansion, R&D enhancement, sales and marketing activities, potential acquisitions, strategic investments, working capital, and general corporate purposes [3] - The expected fundraising amount is approximately 700 million RMB [8] - Financial discrepancies exist between the company's two IPO applications, with a significant difference of 233 million RMB in total liabilities and a 23.07 percentage point difference in asset-liability ratios [9][21] Group 2: Shareholder Dynamics - Prior to the IPO application, major shareholder Blue Lake Capital sold its 9.01% stake at a price significantly lower than the last financing round valuation, raising questions about the company's valuation [4][9] - CICC, as a major external investor holding 11.85% of the company, is also a joint sponsor for the IPO, leading to concerns about potential conflicts of interest [11] - The founder and largest shareholder, Wang Lei, holds 30.27% of the company, indicating a lack of a clear controlling shareholder status [11] Group 3: Business Performance - The company has experienced fluctuations in revenue, with total revenue projected to grow from 568 million RMB in 2022 to 863 million RMB in 2024, reflecting a compound annual growth rate of 23.3% [15] - However, in the first half of 2025, total revenue dropped by 29.93% year-on-year to 203 million RMB, with adjusted EBITDA turning negative at -116 million RMB [15] - The primary revenue source, online testing equipment, has shown a declining trend, with revenues decreasing by 33.40% and 40.02% in 2023 and the first half of 2025, respectively [17]