Core Viewpoint - Yuan Chuang Technology Co., Ltd. is preparing for its IPO on the Shenzhen Stock Exchange after previously withdrawing its application for the Shanghai Stock Exchange due to declining performance. The company is facing challenges with net profit expected to decline in 2024 and the first half of 2025 [2][6]. Company Overview - Yuan Chuang Technology specializes in the research, production, and sales of rubber track products, including agricultural and engineering machinery tracks [3]. - The company plans to raise approximately 485 million yuan, with 60 million yuan allocated for working capital and the remainder for production base and technology center construction [3]. Financial Performance - The company has experienced a decline in net profit, with revenues of approximately 1.39 billion yuan, 1.78 billion yuan, and 1.55 billion yuan for the years 2022 to 2024, respectively [6]. - In the first half of 2025, the company reported revenue of about 652 million yuan, a year-on-year increase of 6.74%, but net profit decreased by 2.65% [7]. - The gross margin for the main business dropped from 28.28% in 2023 to 22.75% in 2024, attributed to rising raw material costs and increased competition [7]. Dividend Policy - Despite planning to raise funds, the company has distributed cash dividends from 2020 to 2023, totaling approximately 45.36 million yuan [3][4]. - The cash dividends were less than 10% of the total profit for each period, indicating a moderate approach to shareholder returns [4]. Control and Governance - The company has a highly concentrated ownership structure, with the actual controller Wang Wenjie holding over 90% of the shares, which may limit the influence of minority shareholders [4][5]. - The board of directors consists of members nominated solely by Wang Wenjie, raising concerns about governance and potential conflicts of interest [4]. Research and Development - The company has emphasized the importance of R&D but has low R&D expenditure relative to revenue, with amounts of 7.14 million yuan, 9.08 million yuan, and 9.77 million yuan from 2022 to 2024 [10]. - The number of R&D personnel is limited, with only 16 employees, and a significant portion lacking higher education qualifications [10]. Accounts Receivable - The company has reported overdue accounts receivable, with balances of 447 million yuan, 355 million yuan, and 480 million yuan over the reporting periods, representing over 30% of revenue [9]. - The overdue accounts receivable amounts were 92.49 million yuan, 46.98 million yuan, and 64.83 million yuan, indicating a potential risk if customer financial conditions worsen [9].