Core Viewpoint - The company, Qipai Technology (688216.SH), is facing regulatory inquiries during its refinancing review on the Sci-Tech Innovation Board due to ongoing losses and negative gross margins [1] Financial Performance - The company has reported losses for the last three years and the first half of 2025, with a net profit loss of 131 million yuan in 2023, narrowing to 102 million yuan in 2024, and a loss of 58.67 million yuan in the first half of 2025 [1] - The gross margin has been negative, with a comprehensive gross margin of -12.97% in 2023, improving slightly to -1.84% in 2024, and remaining at -2.17% in the first half of 2025 [1] Factors Affecting Profitability - The company's profitability is under pressure due to three main factors: 1. Significant price declines of key products (such as SOT and SOP) during the industry downturn in 2023 [1] 2. High fixed asset depreciation from IPO fundraising projects, coupled with a capacity utilization rate below 70% from 2022 to 2023, leading to elevated unit costs [1] 3. Increased financial expenses due to expanded financing, with total expenses of 114 million yuan in 2023 and 124 million yuan in 2024 [1] Industry Comparison - Although the company’s capacity utilization trends are similar to its peers, it faces greater fixed cost pressures due to being in an expansion phase, resulting in a main business gross margin of -5.94% in 2024, significantly lower than the industry average of 13.43% [1] Debt Situation - As of June 2025, the company's asset-liability ratio remains high at 66.87% [1]