Core Viewpoint - Huichuan Technology's spin-off subsidiary, United Power, has received approval for its IPO on the ChiNext board, marking a significant development in the A-share spin-off listing landscape after a period of regulatory tightening [1][4]. Summary by Sections Spin-off Listing Progress - United Power's IPO application was approved by the Shenzhen Stock Exchange, representing the first spin-off IPO approval in 2025, signaling a potential revival in A-share spin-off listings [1]. - The new "National Nine Articles" issued in April 2024 has led to stricter regulations on spin-off listings, causing many companies to halt their plans, yet United Power's approval indicates that the process is not entirely stagnant [1][4]. Company Performance and Financials - United Power, established in 2016, focuses on electric drive systems and power systems, with plans to raise 4.857 billion yuan for various projects including production and R&D [1][2]. - The company reported revenues of 5.027 billion yuan in 2022, 9.365 billion yuan in 2023, and projected 16.178 billion yuan in 2024, with net profits turning from a loss of 179 million yuan in 2022 to a profit of 936 million yuan in 2024 [2]. Regulatory Scrutiny and Market Conditions - The Shenzhen Stock Exchange's listing committee emphasized the importance of sustainable revenue growth and the potential risks of being replaced as a third-party supplier during the IPO review [2][3]. - The committee also requested United Power to address the sustainability of its growth in light of industry trends, customer supply chain developments, and price fluctuations [3]. Independence and Strategic Considerations - The new regulations stress the need for the independence of spin-off companies, with a focus on their business independence, technological advancement, and reasonable valuation [4][5]. - Huichuan Technology asserts that United Power maintains a high level of operational independence from its parent company, aiming to enhance clarity in its business structure and reduce risks associated with diversification [5].