Core Viewpoint - Zhejiang Zhigao Machinery Co., Ltd. is facing its third round of inquiry from the Beijing Stock Exchange regarding the authenticity of its sales revenue, raising concerns about the company's financial practices and its upcoming IPO [1][4]. Company Overview - Zhigao Machinery, established in 2003, specializes in providing comprehensive solutions for rock drilling and air power, with its main products being drilling rigs and screw compressors [4]. - The company primarily employs a distribution model for sales, with distributors contributing significantly to its revenue [4]. Financial Performance - Revenue from distributors for the years 2022 to 2024 was reported as 622 million, 643 million, and 704 million yuan, accounting for approximately 79% of total revenue during the same period [4]. - Net profits for the same years were 89 million, 104 million, and 105 million yuan, reflecting year-on-year growth rates of 32.93%, 16.31%, and 1.49% respectively [4]. Shareholder and Dividend Practices - The company has a deep binding relationship with its distributors, who hold a 9% stake, contributing 13.14%, 12.19%, and 12.94% to revenue from 2022 to the first half of 2024 [4]. - Zhigao Machinery has distributed over 200 million yuan in dividends since its listing, with more than 16 million yuan paid to the holding platform of its distributors [4]. IPO and Fundraising Plans - Prior to its IPO, the company announced a cash dividend of 64.44 million yuan, which is 62.3% of its 2023 net profit, raising questions about the rationale behind its fundraising adjustments [5]. - The company plans to raise 536 million yuan through its IPO, with funds allocated for the construction of a production line for 300 intelligent drilling rigs, an engineering technology research center, and working capital [5][6]. Production Capacity and Utilization - In the first half of 2024, the company reported a drilling rig capacity utilization rate of 175.23%, but its sales rate had dropped to 87.19% [7]. - The progress of the production line project is only at 5%, with self-funding accounting for just 3.23% of the budget [7].

Core Viewpoint - Hunan Guangxin Technology Co., Ltd. is set to have its IPO application reviewed by the Beijing Stock Exchange on April 23, following a remarkable profit increase of 234 times over three years, despite facing significant challenges such as "shell" dealers and substantial debts of its actual controller [1] Group 1: Financial Performance and Concerns - Guangxin Technology's revenue recognition is questionable, with 73.94% of income documents lacking official seals, amounting to 426 million yuan, raising concerns about potential profit inflation and the risk of financial adjustments if clients deny transactions [2] - The company has seen a significant increase in accounts receivable, with revenue growth rates of 31.76%, 38.05%, and 43.60% from 2022 to the first three quarters of 2024, while accounts receivable grew at rates of 69.77%, 2.95%, and 22.13%, indicating possible sales stimulation through relaxed credit policies [2] Group 2: Fundraising and Debt Situation - Despite having 101 million yuan in cash, with 98% being readily accessible bank deposits and a low debt ratio of 13.59%, Guangxin Technology plans to raise 200 million yuan, including 30 million yuan for cash flow support, which raises questions about the necessity of this fundraising [3] - The company’s actual controllers, Wei Dongyun and Wei Yaqin, hold 60.80% of the total shares and have a debt of 2.4 million yuan due to a betting agreement, with 2 million yuan still outstanding, necessitating fundraising through dividends or share pledges post-IPO [3] Group 3: Regulatory Scrutiny and Market Concerns - Regulatory inquiries and market skepticism focus on three main issues: the authenticity of revenue, the necessity of fundraising given low debt and high cash reserves, and the sustainability of performance amid industry growth [3] - If Guangxin Technology fails to adequately address these concerns, it risks facing a rejection similar to its previous attempt in 2017 on the ChiNext board, highlighting the potential for a significant shift in investor perception post-IPO [3]