Core Viewpoint - Suzhou Lianxun Instrument Co., Ltd. is seeking to go public on the A-share market after experiencing explosive growth in 2024, with revenue increasing over 180% and net profit turning positive, despite rising debt levels and concerns over past equity holding arrangements [1][2][4]. Financial Performance - In 2024, the company achieved approximately 789 million yuan in revenue, a year-on-year increase of 185.87%, and a net profit of about 140 million yuan, marking a turnaround from previous losses [2]. - The company reported revenues of approximately 214 million yuan and 276 million yuan in 2022 and 2023, respectively, with net losses of 38.07 million yuan and 55.39 million yuan in those years [2]. - In Q1 2025, the company continued its profitability with revenues of about 201 million yuan and a net profit of approximately 19.33 million yuan [2]. Funding and Capital Structure - The company plans to raise approximately 1.954 billion yuan through its IPO, with 150 million yuan allocated for working capital and the remainder for various R&D projects [3]. - As of Q1 2025, the company had about 254 million yuan in cash, indicating a strong liquidity position despite the planned fundraising [3]. - The company has a rising debt-to-asset ratio, which was reported at 51.03% by the end of the reporting period, significantly higher than the industry average [4]. Shareholding and Governance - The chairman, Hu Haiyang, has a complex shareholding structure, directly holding 20.55% and indirectly controlling a total of 34.83% of the company through various platforms [5][6]. - There were past instances of equity holding arrangements that raised concerns, but the company asserts that its current shareholding structure is clear and compliant with governance standards [7]. Legal and Compliance Issues - The company is currently involved in ongoing litigation related to a patent infringement dispute with Aehr, which remains unresolved [7].

Core Viewpoint - Jiangsu Yongda Chemical Machinery Co., Ltd. (Yongda Shares) plans to expand production after significant dividends and is preparing for an IPO [1][2] Group 1: Financial Performance - Yongda Shares plans to raise 608 million yuan, primarily for capacity expansion and working capital [2] - In 2024, Yongda Shares' main product output and shipment volume are expected to decrease by over 20% year-on-year, marking a three-year low [2] - The company has experienced a situation of increasing revenue but decreasing profit, with net profits in 2024 expected to drop by 18.35% year-on-year [8] Group 2: Dividend Distribution - Prior to the IPO, Yongda Shares distributed dividends totaling 52.52 million yuan in October 2022 and October 2024, with the controlling shareholder's family receiving approximately 45.46 million yuan [2][5] Group 3: Shareholding Structure - The controlling shareholder, Li Changzhe, holds 61.62% of the shares, while the family collectively owns 86.56% of the company [4][5] - Li Changzhe has not held any executive position since joining the company in 2009, raising regulatory concerns about potential proxy shareholding arrangements [4] Group 4: Production Capacity and Market Dynamics - Yongda Shares plans to invest up to 558 million yuan in the first phase of a heavy chemical equipment production base, aiming to add 30,000 tons of capacity [7] - The company's production capacity utilization rate has significantly declined to 83.83% in 2024, with a notable drop in both output and shipment volume [6][8] - The company has a high inventory level, with inventory values representing 45.79% of total assets by the end of 2024 [8] Group 5: Customer Concentration - Yongda Shares has a high customer concentration, with sales to the top five customers accounting for 66.47% of main business revenue in 2024 [8] - The customer base has changed frequently, with significant shifts in the top clients from 2022 to 2024 [9]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued new fundraising supervision rules to enhance the regulation of funds raised by listed companies, effective from June 15, 2025, emphasizing the dedicated use of funds for main business and supporting the real economy [1] Group 1: Fundraising Regulation - The new fundraising supervision rules are a revision of the previous guidelines, focusing on the dedicated use of raised funds and stricter monitoring of fund usage and safety [1][2] - Companies are required to establish internal control systems for managing and supervising the use of raised funds, including clear approval authority and risk control measures [2] - It is crucial that judicial authorities do not freeze or divert funds from the fundraising accounts, which requires collaboration between CSRC, the Supreme People's Court, the Supreme People's Procuratorate, and the central bank [2] Group 2: Oversight of Excess Funds - The rules stipulate that excess funds should be used for ongoing and new projects or for repurchasing and canceling company shares, with a suggestion that excess funds could also be returned to investors [3] - There should be strict regulations on the use of raised funds for supplementing working capital, limiting such use to no more than 20% of the total raised amount [3][4] - Companies that distribute dividends should not use raised funds for working capital supplementation, as this could harm public investors' interests [3] Group 3: Temporary Use of Funds - The rules allow temporarily idle funds to be used for working capital, with a maximum duration of twelve months for such temporary use [4] - Companies must implement responsibility systems for temporary fund supplementation, holding accountable those who supported such actions [4] - Companies engaging in investment activities with their own funds are prohibited from using raised funds for working capital supplementation, and failure to repay temporary supplements will result in a suspension of all financing projects [4]