Core Insights - The article discusses the IPO process of Fuen Co., Ltd., highlighting a significant cash dividend distribution among family members totaling 300 million yuan prior to the IPO [1][2] - Fuen Co., Ltd. aims to raise 1.25 billion yuan through its IPO, with 800 million yuan allocated for an integrated project on recycled eco-friendly fabric and 450 million yuan for a research institute focused on high-end eco-friendly materials [1] Company Overview - Fuen Co., Ltd. is a global supplier of eco-friendly fabrics, emphasizing sustainable development in its operations, which include design, research, spinning, weaving, dyeing, finishing, and sales [1] - The actual controllers of the company are Wang Neili, Wang Xuelin, and Wang Enwei, who collectively control 83.89% of the voting rights [1] Financial Performance - In 2022, Fuen Co., Ltd. distributed a cash dividend of 381 million yuan, with the family members receiving 320 million yuan based on their shareholding proportions [2] - The revenue from recycled fabrics is projected to increase from 75.61% in 2022 to 83.20% in 2024, while the share of virgin fabrics is expected to decrease from 24.39% to 16.8% during the same period [2] - The main product, recycled polyester-cotton blended fabric, is forecasted to generate revenues of 1.18 billion yuan, 1.02 billion yuan, and 1.22 billion yuan from 2022 to 2024, maintaining a revenue share of 67% to 68% [2] Pricing Trends - Despite revenue growth in both recycled polyester-cotton blended and all-polyester fabrics, the average selling prices have been declining [2] - The average selling price of recycled polyester-cotton blended fabric is projected to decrease from 21.61 yuan/meter in 2022 to 20.92 yuan/meter in 2024 [2]

Core Viewpoint - Fuen Co., Ltd. has submitted an IPO application to raise 1.25 billion yuan, marking a significant moment for the textile industry as it attempts to recover from previous IPO rejections [3][4]. Company Overview - Fuen Co., Ltd. specializes in eco-friendly fabrics, primarily focusing on recycled materials, and has become a leading supplier of recycled fabrics for major clothing brands such as H&M, Uniqlo, GU, ZARA, and others [3][4]. - The company has experienced relatively stable revenue over the past three years, with reported revenues of 1.764 billion yuan, 1.517 billion yuan, and 1.813 billion yuan for 2022, 2023, and 2024 respectively [4][5]. Financial Performance - The net profit for Fuen Co., Ltd. has shown a slight decline, with figures of 277 million yuan, 229 million yuan, and 275 million yuan for the same years [4][5]. - The gross profit margin for the main business has fluctuated, recorded at 27.83%, 29.89%, and 28.67% over the three years, indicating a trend of initial growth followed by a decline [4]. Dividend Controversy - In 2022, the company distributed a cash dividend of 381 million yuan, which exceeded its net profit for that year, raising market concerns about its financial practices [5][6]. - The dividend payout ratio was calculated to be 48.78% of the cumulative net profit over the reporting period, which is close to regulatory limits [6]. IPO Fund Utilization - The funds raised from the IPO are intended for projects including the integration of recycled eco-friendly fabric production and the establishment of a high-end eco-friendly materials research institute [7]. Operational Risks - Fuen Co., Ltd. faces challenges such as low accounts receivable turnover rates compared to industry peers, with rates of 7.98, 5.75, and 6.51 times over the reporting years, significantly below the industry average [9][10]. - The company has a high concentration of revenue from its top five clothing brand customers, accounting for approximately 70% of total revenue, which poses a risk to business stability if any of these relationships decline [11]. Regulatory Issues - The company has faced administrative penalties for various violations, including construction without proper permits and tax declaration errors, which may impact its reputation and operational efficiency [11].