Core Viewpoint - Guangdong Yangshan United Precision Manufacturing Co., Ltd. is preparing to enter the A-share market, with significant revenue dependence on Midea Group, which contributed over 60% of its revenue from 2018 to 2020 [1][2][3] Group 1: Revenue and Profit Growth - Yangshan United's revenue has shown consistent growth, with reported revenues of 278.38 million, 343.43 million, and 451.40 million yuan for the years 2018, 2019, and 2020 respectively [2] - The net profit attributable to the company also increased significantly during the same period, with figures of 32.55 million, 63.86 million, and 84.48 million yuan [2] Group 2: Customer Concentration - The company has a high customer concentration, with sales to the top five customers accounting for 97.68%, 97.03%, and 97.15% of total revenue in 2018, 2019, and 2020 respectively [2] - Midea Group has been the largest customer, contributing sales of 186.69 million, 264.52 million, and 347.12 million yuan, representing 67.06%, 77.02%, and 76.90% of total revenue in the respective years [3] Group 3: Accounts Receivable Growth - Yangshan United's accounts receivable have increased significantly, with values of 79.19 million, 118.31 million, and 168.38 million yuan at the end of 2018, 2019, and 2020, respectively [7] - The accounts receivable accounted for 30.11%, 36.36%, and 39.28% of total revenue during the same periods [7] Group 4: Sales Model and Financial Risks - The company's sales model primarily relies on credit sales, leading to an increase in accounts receivable, which may result in cash flow difficulties if timely payments are not received [8] - The concentration of customers poses a risk; if a major customer faces financial difficulties, it could increase the likelihood of bad debts for Yangshan United [7][8]