Core Viewpoint - Puyuan Precision Electric has submitted an application for a dual listing on the Hong Kong Stock Exchange, despite having significant cash reserves, raising questions about the necessity of additional fundraising [1][4]. Group 1: Company Overview - Puyuan Precision Electric is a leading Chinese electronic measurement instrument company, providing a comprehensive range of products and solutions, primarily serving high-growth industries such as communications, new energy, and semiconductors [2]. - The company went public on the Sci-Tech Innovation Board in April 2022, raising a total of 1.846 billion yuan through the issuance of 30.32 million shares at a price of 60.88 yuan per share [2][4]. Group 2: Financial Performance - Since its listing, Puyuan Precision Electric has raised a total of 2.438 billion yuan through various financing methods, including a directed issuance that raised 592 million yuan [2][3]. - The company's revenue from 2022 to 2025 showed a growth trend, with figures of 631 million yuan, 671 million yuan, 776 million yuan, and 355 million yuan respectively, reflecting year-on-year growth rates of 30.3%, 6.34%, 15.7%, and 15.57% [6][7]. - However, the net profit attributable to shareholders showed a decline in 2024, with figures of 92 million yuan, 108 million yuan, 92 million yuan, and 16 million yuan, indicating a year-on-year decrease of 14.5% in 2024 [6][8]. Group 3: Cash Flow and Operational Efficiency - Puyuan Precision Electric reported negative cash flow across all three major cash flow indicators in the first half of 2025, with net cash flow from operating activities at -14 million yuan, investment activities at -70 million yuan, and financing activities at -51 million yuan [8][9]. - The company has a significant amount of cash and cash equivalents, totaling 3.29 billion yuan, with trading financial assets amounting to 1.788 billion yuan, leading to a total broad money supply of 2.117 billion yuan [5][6]. - Operational efficiency indicators, including total asset turnover, inventory turnover, and accounts receivable turnover, have all shown a downward trend, indicating a decline in the company's operational capabilities [10][12][13].

Core Insights - The article discusses the increasing trend of Chinese companies pursuing dual listings in both A-shares and H-shares, highlighting the recent listing of Jihong Co., marking the fifth such company in 2023 [1] - The surge in dual listings is accompanied by significant capital inflow, particularly noted in the IPO of CATL, which raised a total of HKD 41.006 billion, attracting numerous international investment institutions as cornerstone investors [2][3] Group 1: Market Trends - The number of Chinese companies achieving dual listings has accelerated, with only seven companies completing this from 2021 to 2023, indicating a notable increase in activity [1] - The competitive landscape for cornerstone investors has intensified, with a scarcity of available investors for recent IPOs, particularly noted since Q4 2024 [3][4] Group 2: Investment Dynamics - CATL's IPO exemplifies the trend of high demand for cornerstone investors, with 21 investors participating, contributing amounts ranging from USD 3 million to USD 500 million [4] - The shift in the purpose of Chinese companies going public in Hong Kong is evident, as they increasingly focus on international business expansion rather than solely attracting international capital [5] Group 3: Underwriting Landscape - The underwriting market has seen a decrease in fees, with CATL's underwriting fee at only 0.2%, significantly lower than the typical 2%-2.5% range for IPOs [6][8] - The competitive pressure has led to a rise in the market share of Chinese investment banks in Hong Kong, with three out of the top five firms in terms of fundraising being Chinese [8][9] Group 4: Role of Chinese Investment Banks - Chinese investment banks are increasingly taking on prominent roles as lead underwriters for major IPOs, a shift from the past when global banks dominated this space [9][10] - The trend indicates a growing influence of Chinese firms in the Hong Kong IPO market, as evidenced by their leading positions in recent high-profile listings [9]