Core Viewpoint - Tongli Technology Co., Ltd. (Tongli Shares), a subsidiary of TCL Group, has faced significant delays in its IPO process, remaining unregistered for over 800 days after passing the listing committee meeting in July 2023, making it the longest pending company at the Shenzhen Stock Exchange [1][3]. Company Overview - Tongli Shares is an ODM manufacturer for renowned brands such as Samsung, Harman, and Sony, and plans to issue up to 100 million shares to raise 1.02 billion yuan [2]. - The company was spun off from TCL Group during a major asset restructuring in 2019, focusing on semiconductor business while transferring smart terminal manufacturing to TCL Holdings [1]. Financial Performance - The company reported revenues of 10.03 billion yuan in 2022, with a projected increase to 11.46 billion yuan in 2024. Net profits for the same years were 370 million yuan, 510 million yuan, and 590 million yuan respectively [5]. - In the first half of 2025, Tongli Shares achieved revenue of 5.87 billion yuan, a 19% year-on-year increase, with net profit slightly rising by 3.8% to 340 million yuan [5]. Product Segmentation - Audio products accounted for 54.7% of total revenue in the first half of 2025, while AIoT products saw significant growth, although they contributed to lower overall profit margins [5][6]. - The company’s domestic gross margin was reported at 10.6%, compared to 17.8% for international sales, indicating a reliance on lower-margin AIoT business [5]. Market Position - Tongli Shares is positioned as the second-largest player in the audio ODM market, with annual revenues trailing only behind industry leader GoerTek, which surpassed 100 billion yuan in revenue [7]. - The company has a high dependency on its top five clients, which contributed over 80% of its revenue, with Samsung and Harman accounting for more than 53.5% of sales in the first half of 2025 [8][9]. R&D and Innovation - Despite a higher R&D expense ratio of approximately 6% in the first half of 2025, Tongli Shares holds significantly fewer patents compared to its competitors, with only 804 authorized patents, including 107 invention patents [10][11]. - In contrast, GoerTek holds over 21,735 patents, indicating a potential gap in innovation and intellectual property within the company [11].