Core Viewpoint - The recent listing of Youli Intelligent Equipment Co., Ltd. on the Beijing Stock Exchange marks the fourth photovoltaic company to go public in A-shares this year, with significant initial stock price volatility and concerns about the company's competitive advantages and market conditions [1][2]. Company Performance - Youli Intelligent focuses on core components of photovoltaic brackets, with main products including torque tubes, bearing components, installation structures, and purlins [2]. - The company has shown exceptional performance in a challenging market, with revenue increasing from 433 million yuan in 2022 to 729 million yuan in 2024, and net profit doubling from approximately 41.95 million yuan to 89.86 million yuan over the same period [2]. - In Q1 2025, the company reported revenue of 272 million yuan, a year-on-year increase of 47.33%, and a net profit of approximately 32.87 million yuan, up 16.24% year-on-year [2]. Revenue Projections - For the first half of 2024, Youli Intelligent expects revenue between 462 million yuan and 482 million yuan, representing a growth of 24.43% to 29.82% compared to the same period in 2023 [3]. - The company anticipates a non-net profit of approximately 54.96 million yuan to 56.96 million yuan, reflecting a year-on-year growth of 11.12% to 15.16% [3]. International Market Presence - Over 70% of Youli Intelligent's revenue comes from overseas markets, with significant exports to regions including Brazil, Chile, Australia, Canada, Europe, and the Middle East [3]. - The company's foreign sales revenue has shown consistent growth, increasing from approximately 367.58 million yuan in 2022 to 563.60 million yuan in 2024, with foreign sales accounting for 88.19%, 73.06%, and 78.72% of total revenue in those years [3]. Market Dynamics - The photovoltaic bracket sector is characterized by high domestic concentration and a focus on overseas markets, with a trend towards tracking brackets despite fixed brackets remaining mainstream [3]. - The global market for tracking brackets is dominated by foreign manufacturers, with NEXTracker holding a stable market share of 25%-30% [3]. Customer Concentration Risks - Youli Intelligent faces high customer concentration risk, with sales to its top five customers accounting for 94.90%, 94.91%, and 96.44% of revenue from 2022 to 2024 [4][5]. - The company's reliance on NEXTracker is particularly significant, with revenue from this client representing 80.69%, 61.67%, and 70.00% of total revenue in the same period [5]. Profitability and Cost Pressures - The company's gross margin has declined from 18.96% in 2022 to 18.42% in 2024, indicating potential profitability challenges [6]. - Rising raw material costs, particularly steel, could negatively impact profits, with a 1%-3% increase in raw material prices potentially leading to a profit decrease of approximately 4.63%-13.89% [6].

Core Viewpoint - Jiangsu Youli Intelligent Equipment Co., Ltd. (Youli Intelligent) is preparing for its listing on the Beijing Stock Exchange, focusing on the photovoltaic bracket sector, with significant concerns regarding its internal control, fundraising, and reliance on a few major clients [1][17]. Company Overview - Youli Intelligent specializes in the research, production, and sales of core components for photovoltaic brackets, including torque tubes (TTU), bearing components (BHA), installation structures (URA), and rails (RAIL) [1]. - The company was established in April 2017 and transitioned to a joint-stock company in April 2023, with a significant shareholding structure dominated by the Li Tao family, controlling over 81% of voting rights [3][5]. Financial Performance - For the years 2022 to 2024, Youli Intelligent reported revenues of CNY 433 million, CNY 658 million, and CNY 729 million, reflecting year-on-year growth rates of 12.78%, 51.96%, and 10.84% respectively [17]. - The net profit attributable to the parent company for the same period was CNY 42 million, CNY 78 million, and CNY 90 million, with growth rates of 185.55%, 85.27%, and 15.19% respectively [17]. Fundraising and Investment Projects - Youli Intelligent plans to raise CNY 269.9 million for projects including the construction of a production base for core components, a research and development center, and smart upgrades [7][10]. - The allocation of funds includes CNY 151.32 million for the production base, CNY 19.68 million for the R&D center, CNY 28.90 million for smart upgrades, and CNY 70 million for working capital [8]. Research and Development - The company's R&D expenses from 2021 to 2024 were CNY 3.92 million, CNY 5.07 million, CNY 5.83 million, and CNY 12.13 million, indicating a significant increase in investment in recent years [10]. - However, Youli Intelligent's R&D expense ratio is lower than industry peers, with 2022 and 2023 ratios at 2.29% and 0.89%, compared to averages of 2.09% and 2.12% for comparable companies [13][14]. Customer Concentration - The top five customers accounted for over 90% of total sales during the reporting period, with NEXTracker being the largest client, contributing 70% of revenue in 2024 [17][19]. - The reliance on a few major clients poses risks, as any adverse changes in relationships or market conditions could significantly impact the company's performance [19]. Accounts Receivable - Youli Intelligent has seen a continuous increase in accounts receivable, reaching CNY 99.51 million, CNY 186.30 million, and CNY 198.14 million over the last three years, with significant growth rates of 87.23% and 6.35% in the last two years [21]. - The company maintains that the quality of accounts receivable is good, with most being less than one year old, but high receivables could strain operational cash flow [21].