Core Viewpoint - The article discusses the challenges faced by Shenzhen Shangshui Intelligent Co., Ltd. in its IPO journey, highlighting its heavy reliance on BYD as a major customer and the decline in its market share in the lithium battery equipment sector [1][3][15]. Group 1: IPO Journey - Shangshui Intelligent's IPO application was initially accepted in June 2023 but was withdrawn in June 2024 due to concerns from the exchange regarding customer dependency and technological advancement [3][4]. - The company has reinitiated its IPO process with a new target on the ChiNext board, reducing its fundraising goal from 1 billion to 587 million [3][4]. Group 2: Market Position and Competition - Shangshui Intelligent's market share in the circular pulping equipment segment has decreased from 89% in 2022 to 60% in 2024, indicating increasing competition [9][10]. - In the overall lithium battery pulping system market, the company holds only a 12.8% share, ranking third behind competitors with significantly higher revenues [10][11]. Group 3: Revenue Dependency - The company derives over 90% of its revenue from a single product, the circular pulping equipment, which limits its growth potential [11]. - BYD contributes 65.8% of Shangshui Intelligent's revenue in 2024, highlighting the company's dependency on a single customer [15][24]. Group 4: Financial Performance and Challenges - The average execution cycle for core products has increased from 17.53 months in 2022 to 23.20 months in 2024, indicating delays in customer acceptance [28][30]. - As of the end of 2024, the company's inventory reached 885 million, accounting for nearly half of its total assets, with a low inventory turnover rate of 0.37 times [32][33]. - Despite reporting profits in 2022, the company has faced negative operating cash flows in 2023 and 2024, indicating liquidity issues [34][35]. Group 5: Management and Governance Issues - The company's actual controller has reportedly cashed out over 50 million, raising concerns about governance and financial management during a critical period for the company [38][40]. - The controller's actions, including significant cash withdrawals and stock transfers, have occurred despite the company's financial struggles, suggesting potential conflicts of interest [40][41].