Group 1 - Crown New Materials Technology Co., Ltd. has submitted its prospectus to the Shenzhen Stock Exchange, revealing details about the company and its founders [2] - The company, originally established in 2000, specializes in the research, production, and sales of industrial-grade adhesive materials, electronic-grade adhesive materials, and functional film materials [3] - The main applications of Crown New Materials' products include light industry, home appliances, automotive manufacturing, new energy batteries, consumer electronics, smart IoT, and semiconductors [3] Group 2 - The company is controlled by the Mai family, with Mai Huiquan holding 25.92% and Mai Huixia holding 38.59% of the shares, totaling 87.17% control [3] - Mai Huiquan, the founder, transitioned from being a primary school teacher to the adhesive industry, establishing several companies before founding Crown New Materials [4] - In 2022, the Mai family undertook internal asset restructuring to address competition issues prior to the IPO, including acquisitions of stakes in related companies [4][5] Group 3 - The IPO aims to raise 919 million yuan, which will be allocated to expansion projects, industrialization of optical films, R&D center construction, and working capital [6] - Revenue projections for 2022 to 2024 are 2.567 billion yuan, 2.895 billion yuan, and 3.159 billion yuan, with net profits of 206 million yuan, 278 million yuan, and 302 million yuan respectively [6] - The company has faced challenges with cash flow, as evidenced by a decline in net cash flow from operating activities due to high accounts receivable and inventory levels [6] Group 4 - Despite the growth in the functional composite materials industry, Crown New Materials has experienced inventory impairment and declining prices for core products [7] - The company's inventory values from 2022 to mid-2025 show a decreasing trend, with significant impairment losses reported [7] - The gross margin has increased from 20.02% in 2022 to 23.82% in mid-2025, indicating better profitability compared to industry peers [7] Group 5 - As of June 2025, the company's intangible assets are valued at 275 million yuan, primarily consisting of land use rights [8] - The land use rights include multiple industrial and residential plots, totaling nearly 400,000 square meters, indicating a significant real estate component in the company's asset structure [8]

Core Viewpoint - Crown New Materials Technology Co., Ltd. (Crown New Materials) faces significant structural risks despite its impressive client list and market presence, including issues related to raw material dependency, governance risks from its actual controller's cross-border identity, and contradictions between fundraising needs and substantial dividend payouts [1][2][25]. Group 1: Structural Risks - The company claims to be a high-tech enterprise with a focus on functional composite materials, serving major clients like Huawei and Apple, but it harbors structural risks in its core business [2][4]. - Crown New Materials has a high dependency on raw materials, with direct materials accounting for over 80% of its main business costs, linking its profitability closely to international oil prices [4][5]. - The company faces intense competition in the market, with major players like 3M and Nitto dominating the high-end segment, while its product structure remains heavily weighted towards industrial-grade adhesive materials, which have seen declining sales prices [5]. Group 2: IPO and Sponsorship Concerns - The IPO application marks Crown New Materials' first attempt to list on the A-share main board, with China International Capital Corporation (CICC) as the sponsor [7][9]. - The sponsor must prepare for potential inquiries regarding the actual controller's overseas identity and the compliance of fund flows, as well as the alignment of financial data with industry trends [9]. Group 3: Governance and Control Risks - The company's ownership structure is characterized by absolute family control, with the actual controllers holding 87.17% of the shares, raising concerns about governance effectiveness and potential decision-making imbalances [10][12]. - The actual controller's dual nationality (Australian and Hong Kong permanent resident) poses regulatory scrutiny regarding cross-border fund flows and compliance risks [12][13]. Group 4: Financial Data and Quality Concerns - Despite revenue and net profit growth from 2022 to 2024, discrepancies in financial data raise concerns about operational quality, particularly a significant decline in cash flow despite revenue growth [14][16]. - Anomalies in prepaid accounts, which grew by 28.44% in 2024 while operating costs increased by only 7.95%, warrant scrutiny regarding the nature of these transactions [14][16]. - The company's asset efficiency has declined, with revenue per fixed asset decreasing from 4.62 in 2022 to 3.87 in 2024, while capital expenditures surged by 82.05% [14][17]. Group 5: Fundraising Logic and Dividend Conflicts - Crown New Materials plans to raise approximately 919 million yuan, with 100 million yuan earmarked for working capital, despite having distributed significant cash dividends of 75.24 million yuan and 82.54 million yuan in 2023 and 2024, respectively [24][25]. - The juxtaposition of large dividend payouts and the need for fundraising raises questions about the company's liquidity and the rationale behind its dividend policy [24][25].

Core Viewpoint - Crown New Materials Technology Co., Ltd. has initiated its IPO on the Shenzhen main board, aiming to raise 919 million yuan for expansion and development projects in the functional composite materials sector [1][4]. Group 1: Company Overview - Crown New Materials specializes in the research, production, and sales of industrial-grade adhesive materials, electronic-grade adhesive materials, and functional film materials [3]. - The company's products are widely used across various industries, including light industry, home appliances, automotive manufacturing, new energy batteries, consumer electronics, smart IoT, and semiconductors [3]. Group 2: Market Position and Competition - The domestic market for functional composite materials is fragmented, with many small-scale manufacturers focusing on low-end products, while a few established companies like Crown New Materials have developed the capability to compete with international leaders [3][4]. - Crown New Materials has successfully entered markets previously dominated by international giants such as 3M, Nitto, and tesa, supplying well-known brands like OPPO, vivo, Huawei, Apple, Google, and Tesla [4]. Group 3: Financial Performance - The company reported revenues of 2.895 billion yuan, 3.159 billion yuan, and 1.592 billion yuan for the years 2023, 2024, and the first half of 2025, respectively, with net profits of 278 million yuan, 302 million yuan, and 155 million yuan [4]. - The functional composite materials market in China reached a scale of 232.7 billion yuan in 2023, indicating significant growth potential for Crown New Materials' products [4]. Group 4: Use of IPO Proceeds - The IPO proceeds of 919 million yuan will be allocated to expansion projects in Guangdong, Jiangsu, and Zhejiang, as well as the establishment of a research and development center and to supplement working capital [4][5]. - These investments are expected to strengthen the company's market position and enhance its innovation capabilities in the functional composite materials industry [5].

Core Viewpoint - Crown New Materials Technology Co., Ltd. has received approval for its IPO on the Shenzhen Stock Exchange, aiming to raise approximately 9.1868 billion yuan for expansion and development in the functional composite materials sector [1] Group 1: Company Overview - Crown New Materials specializes in the research, production, and sales of industrial-grade adhesives, electronic-grade adhesives, and functional film materials, serving various industries including light industry, home appliances, automotive manufacturing, new energy batteries, consumer electronics, smart IoT, and semiconductors [1] - The company has established a strong customer base, providing high-quality composite materials to renowned clients such as OPPO, vivo, Huawei, Apple, Google, Amazon, BYD, Tesla, CATL, and Gree [1] Group 2: Financial Performance - The company's main business revenue is derived from industrial-grade adhesives, electronic-grade adhesives, and functional film materials, with these products consistently accounting for over 97% of total revenue during the reporting period [2] - Revenue figures for the company are approximately 2.567 billion yuan, 2.895 billion yuan, 3.159 billion yuan, and 1.592 billion yuan for the years 2022, 2023, 2024, and the first half of 2025, respectively [4] - Net profit figures for the same periods are approximately 206 million yuan, 278 million yuan, 302 million yuan, and 155 million yuan [5] Group 3: Market Position and Competition - The functional composite materials industry is characterized by market competition, with significant differences among participants in brand strength, business scale, market share, and R&D capabilities [2] - Major international players such as 3M, Nitto Denko, and tesa dominate the high-end market segments in consumer electronics, automotive, and semiconductors, influencing industry trends [2] Group 4: Investment Projects - The funds raised from the IPO will be allocated to several projects, including: - Expansion of functional composite materials production in Guangdong, with a total investment of 199.8006 million yuan - Expansion of semiconductor-related products in Jiangsu, with a total investment of 216.013 million yuan - Industrialization of optical film in Zhejiang, with a total investment of 227.7939 million yuan - Construction of a research and development center, with a total investment of 288.7142 million yuan - Supplementing working capital with an investment of 100 million yuan - The total investment for these projects is approximately 1.0323217 billion yuan, with 918.6813 million yuan planned to be raised from the IPO [4]