Core Viewpoint - Zhuhai Saiwei Electronic Materials Co., Ltd. has voluntarily withdrawn its IPO application after more than three years of efforts, marking the end of its journey to list on the ChiNext board [1][2]. Company Overview - The company specializes in the research, production, and sales of lithium-ion battery electrolytes and is a supplier to major battery manufacturers such as CATL, Yiwei Lithium Energy, and others [3]. - The planned IPO aimed to issue no more than 23.09 million shares to raise 1 billion yuan for projects including electrolyte production and a research center [3]. IPO Process and Challenges - The IPO application was accepted on September 29, 2022, and after several rounds of review, it passed the listing committee meeting on September 15, 2023. However, it did not receive the final registration approval [2]. - Key concerns raised during the review included the company's core competitiveness, particularly its reliance on "customer-supplied formulas," which accounted for nearly half of its revenue, raising questions about its technological independence and bargaining power [4]. Financial Performance - The company reported a significant decline in performance for the first half of 2023, with revenue of 593 million yuan, a year-on-year decrease of 46%, and a net profit of 54.75 million yuan, down 56.9% [4]. - Despite a 42.18% increase in sales volume, the average selling price of electrolytes dropped from 85,400 yuan per ton in 2022 to 32,300 yuan per ton in 2023, severely impacting profit margins [4]. Industry Context and Risks - The company faces high customer concentration, with the top five customers' sales proportion increasing from 56.21% to 66.14%, indicating deeper reliance on major clients [5]. - The company is also exposed to risks from technological changes in the battery industry, such as solid-state and sodium-ion batteries, and significant fluctuations in raw material prices [5]. - The company's operating cash flow turned negative, dropping from 31.79 million yuan to -82.31 million yuan between 2021 and 2022, highlighting significant cash flow volatility [5].