Core Viewpoint - Zhongcheng Zhixin Engineering Consulting Group Co., Ltd. is preparing for its initial public offering (IPO) on the Beijing Stock Exchange, with stock issuance expected to start in late October 2023 after receiving approval from the China Securities Regulatory Commission [1][3]. Financial Performance - The company's revenue for 2022, 2023, and 2024 is projected to be approximately CNY 303 million, CNY 368 million, and CNY 396 million, respectively, with a compound annual growth rate (CAGR) of 14.19%, which is below peers like Qingju Technology and Guoyi Tender [5][6]. - The net profit attributable to shareholders for the same years is expected to be CNY 64 million, CNY 81 million, and CNY 105 million, respectively, with a CAGR of 27.97%, ranking second among peers [5][6]. - However, in 2025, the company anticipates a revenue decline of 3.04% to CNY 384 million and a net profit decrease of 4.14% to CNY 101 million, marking the first annual revenue drop since its listing on the New Third Board in 2016 [11][12]. Business Structure and Risks - The company relies heavily on the Jiangsu province for its revenue, with over 96% of its income coming from this region, and more than 81% from Suzhou alone, indicating a significant concentration risk [14]. - The engineering cost consulting segment contributes over 53% of total revenue, but the tender agency business saw a 34.67% decline in 2024 [14]. Order and Revenue Trends - In the first nine months of 2025, the company reported a 13.85% year-on-year decrease in new orders, totaling CNY 196 million [10]. - The expected revenue for the first three quarters of 2025 is projected to decline by 2.56% to 6.17% compared to the previous year [8][9]. Related Party Transactions - The company has faced scrutiny over related party transactions, with significant overlaps between major clients and shareholders, raising concerns about the fairness of these transactions [15][16]. - The top five clients accounted for 23.47% of sales in 2025, with a notable relationship between the company and Suzhou High-tech Group, which has raised regulatory concerns [15][16]. Fundraising and Regulatory Challenges - The initial fundraising target was CNY 330 million, which has been reduced to CNY 200 million due to regulatory inquiries regarding the necessity and rationality of the proposed projects [22][24]. - The company has faced three rounds of inquiries from the Beijing Stock Exchange, which have highlighted compliance issues and led to a significant reduction in the planned fundraising amount [22][24].

Core Viewpoint - Yuan Chuang Technology Co., Ltd. (referred to as "Yuan Chuang") is facing a contradiction of increasing revenue but decreasing net profit, raising concerns about its future sustainable growth and profitability [2][3]. Financial Performance - In the reporting period from 2022 to 2024, Yuan Chuang's revenue figures were 1.2607 billion yuan, 1.1415 billion yuan, and 1.3491 billion yuan, respectively, with a revenue growth of 18.19% in 2024. However, net profit figures were 138.9 million yuan, 177.6 million yuan, and 154.7 million yuan, indicating a decline of 12.94% in 2024 [3][4]. - The main products include agricultural rubber tracks, engineering rubber tracks, and rubber track plates, with agricultural rubber tracks generating significant revenue, accounting for 49.86%, 48.89%, and 53.5% of total revenue in the respective years [3][4]. Customer Concentration Risk - Yuan Chuang's sales are highly concentrated among its top five customers, with sales revenue of 631.6 million yuan, 531.5 million yuan, and 673.7 million yuan, representing 50.1%, 46.56%, and 49.94% of total revenue during the reporting period [4][5]. IPO Fundraising and Project Viability - The company plans to raise 48.5 million yuan through its IPO for production base construction, technology center construction, and working capital supplementation. The necessity of these projects is questioned, especially given the declining production capacity and utilization rates of rubber track plates [6][7]. - The production base project aims to add 550,000 rubber tracks and 1.6 million rubber track plates, despite a downward trend in production and utilization rates from 2022 to 2024 [6][7]. - The company has maintained a strong cash position, with cash reserves significantly exceeding short-term borrowings, raising questions about the need for additional working capital [7][8].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. (referred to as "Hengkang New Materials") has seen its IPO registered on the Sci-Tech Innovation Board as of September 12. The company heavily relies on a concentrated customer base, with 97% of its revenue coming from its top five clients, raising concerns about its growth sustainability and profitability despite strong revenue growth [1][2][3]. Group 1: Revenue and Profitability - Hengkang New Materials reported significant revenue growth during the reporting period, with revenues of 321.77 million yuan, 367.71 million yuan, and 547.94 million yuan from 2022 to 2024, respectively. However, net profits fluctuated, with figures of 99.73 million yuan, 89.76 million yuan, and 96.91 million yuan, indicating a "revenue growth without profit" trend [2][3]. - In the first half of 2025, the company achieved a revenue of 294.34 million yuan, a year-on-year increase of 23.74%, while net profit decreased by 5.71% to 41.58 million yuan, with a significant drop of 25.18% in net profit after deducting non-recurring gains and losses [2][3][4]. Group 2: Customer Concentration - The company's revenue is highly dependent on a few key clients, with sales to the top five clients accounting for 99.22%, 97.92%, and 97.2% of total revenue during the reporting period, indicating a significant reliance on a limited customer base [3][4]. - Specifically, sales to a single client (Client A) contributed 72.35%, 66.74%, and 64.07% of total revenue in the respective years, highlighting the risk associated with such customer concentration [4]. Group 3: Product Profitability - Hengkang New Materials has two main product categories: self-produced products and introduced products. The revenue from self-produced products has been increasing, but the profit contribution remains low, with introduced products generating the majority of profits [6][7]. - The gross profit from introduced products was 189.41 million yuan, 167.92 million yuan, and 192.31 million yuan, while self-produced products generated gross profits of 41.43 million yuan, 57.72 million yuan, and 99.71 million yuan, indicating that introduced products account for over 65% of the company's profit [7][8]. Group 4: R&D Investment and Product Viability - The company has a high R&D expense ratio, with rates of 13.28%, 14.59%, and 16.17% during the reporting period, significantly above the industry average [11]. - Despite high R&D spending, the gross margin for self-produced products has been declining, falling below the industry average since 2023, raising questions about the technological content of its self-produced products [11]. Group 5: IPO Fund Utilization and Expansion Plans - Hengkang New Materials aims to raise 1.007 billion yuan through its IPO for expansion projects, including the second phase of integrated circuit precursor projects and advanced materials projects. However, the rationale behind these projects is questioned due to the ongoing losses in precursor materials [13][15]. - The company plans to expand its production capacity for KrF photoresist, which has consistently low utilization rates below 20%, raising concerns about the feasibility of such expansion [15].