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].