Core Viewpoint - The company, Shenzhen Peicheng Technology Co., Ltd., initially aimed for an IPO on the Shanghai Stock Exchange but shifted its target to the Beijing Stock Exchange, facing scrutiny from regulators regarding its performance volatility, customer stability, and the necessity of its fundraising projects [4][20]. Group 1: Performance and Customer Stability - The company's revenue from battery power control systems showed a "V-shaped" curve from 2022 to the first half of 2025, with figures of 389 million, 472 million, 401 million, and 372 million respectively, highlighting a significant 123.78% year-on-year increase in the first half of 2025 after a decline of 15.13% the previous year [5][21]. - The company attributed its revenue fluctuations to "downstream market demand rotation," with European market subsidy reductions leading to weak demand, while emerging markets in Africa and Southeast Asia surged [5][21]. - The customer base is heavily skewed towards small and medium-sized clients, with 90% of customers generating less than 1 million in sales, contributing only 15.93% of revenue in the first half of 2025 [6][22]. Group 2: Fundraising Projects and Feasibility - The company plans to raise 500 million yuan, with 294 million allocated for enhancing battery and power control system production capacity, 144 million for a research and development center, and 62 million for working capital [30]. - The transition to a fully self-produced model raises questions about the rationale, as the average processing costs of outsourced production are similar to in-house production [30]. - Concerns exist regarding the ability to absorb increased production capacity, with projected sales of 964,400 units in 2024, significantly lower than the anticipated capacity of 1.9935 million units post-fundraising [30][31]. Group 3: Legal and Compliance Issues - The company faced a lawsuit from Changfeng Intelligent Technology Co., Ltd. over product quality issues, resulting in a compensation payment of approximately 2.08 million yuan [11][27]. - There were compliance issues related to exceeding environmental assessment production capacity, which the company claims has been rectified [11][27]. - The company has also experienced a decline in procurement from major clients, notably BYD, whose purchases dropped from 90.3 million yuan in 2022 (10.62% of revenue) to 38.1 million yuan in 2024 (5.19% of revenue) [25].