Core Viewpoint - Suzhou Lianxun Instrument Co., Ltd. has received approval for its IPO on the Sci-Tech Innovation Board, aiming to raise 1.954 billion yuan for projects related to its main business [1][2]. Financial Performance - The company has shown rapid growth in revenue and net profit, with a compound annual growth rate (CAGR) of 91.79% in revenue from 2022 to 2024, and is expected to achieve profitability in 2024 [1][6]. - Revenue figures for the years 2022 to 2025 Q1 are approximately 214 million, 276 million, 789 million, and 201 million yuan respectively [6]. - The gross profit margin has increased significantly from 43.61% in 2022 to 65.33% in 2025 Q1, driven by higher sales of communication testing instruments and power device testing equipment [6][9]. Investment Projects - The IPO proceeds will be allocated to several key projects, including: - R&D and industrialization of next-generation optical communication testing equipment [2][3]. - R&D and industrialization of automotive chip testing equipment [3]. - R&D and industrialization of storage testing equipment [3]. - R&D and industrialization of digital testing instruments [3]. - Construction of R&D and manufacturing centers (Phase I) [3]. - Supplementing working capital [4]. Market Position - The company is a leading manufacturer of high-end testing instruments in China, covering critical testing needs across the optical communication industry chain [2]. - It ranks first in market share for optical device testing equipment and silicon carbide power device wafer-level aging systems in China, and third in the optical communication testing instrument market [2]. Accounts Receivable and Inventory - As of the end of Q1 2025, accounts receivable reached 305 million yuan, accounting for 37.95% of the revenue for that period [6][12]. - Inventory value was approximately 406 million yuan, with a significant increase from 70.73 million yuan at the end of 2022, indicating a fivefold growth [12]. - The company faces potential risks related to high accounts receivable and inventory levels, which could impact cash flow and operational efficiency [12].