Core Viewpoint - Shenzhen Xunfang Technology Co., Ltd. has announced the termination of its application for an IPO on the Beijing Stock Exchange, citing the need to withdraw its application documents [1][5]. Group 1: Company Overview - Xunfang Technology focuses on the ICT sector, providing software and information technology services, including operator network technology services and enterprise network technology services [6][12]. - The company has developed a business model that integrates enterprise information technology services with ICT education and training services [12][21]. Group 2: Financial Performance - From 2020 to 2023, Xunfang Technology's revenue increased from 458 million yuan to 884 million yuan, with net profits showing fluctuations [14][16]. - The company's R&D expense ratio has decreased from 6.64% in 2020 to 3.81% in 2024, indicating a decline in R&D relative to revenue growth [7][8]. Group 3: Client Dependency - A significant portion of Xunfang Technology's revenue is derived from Huawei, with sales to Huawei accounting for 72.29% to 86.81% of total revenue from 2020 to 2023 [14][21]. - The company has acknowledged its reliance on Huawei and has been working to diversify its client base, including new clients like China Mobile [14][19]. Group 4: Regulatory Scrutiny - The Beijing Stock Exchange has raised concerns regarding Xunfang Technology's reliance on a single major client and its innovation capabilities, leading to multiple rounds of inquiries [6][10][12]. - The company has been asked to provide detailed explanations regarding its competitive advantages and the sustainability of its business model in light of its client dependency [12][20]. Group 5: IPO and Fundraising Plans - Xunfang Technology plans to raise 250 million yuan through its IPO, with funds allocated for regional service network upgrades, R&D center construction, and working capital [24][26]. - The company aims to enhance its service capabilities and expand its market presence through these investments, while also addressing concerns about its reliance on Huawei [26][27].