Core Viewpoint - The company, Green Biotechnology Co., Ltd., has submitted its prospectus to the Shenzhen Stock Exchange's ChiNext, aiming to raise approximately 690 million yuan. This marks the company's third attempt at an IPO, following two previous withdrawals due to issues related to environmental disclosures, performance fluctuations, and uncertainties regarding its ChiNext positioning. Despite showing growth in performance, the company faces significant uncertainties regarding its listing prospects due to high debt levels, weak R&D, insufficient capacity utilization, environmental compliance concerns, and issues related to excessive dividends [1][9]. Financial Performance - Green Biotechnology has shown a growth trend in revenue and net profit in recent years. From 2022 to 2024, the company's revenue is projected to increase from 631 million yuan to 961 million yuan, with a compound annual growth rate (CAGR) of 23.35%. The net profit attributable to shareholders is expected to rise from 68.14 million yuan to 150 million yuan, with a CAGR of 48.59%. In the first half of 2025, revenue reached 548 million yuan, and net profit was 94.58 million yuan, maintaining a high level [2][10]. R&D Investment Concerns - The company's R&D investment intensity is significantly below industry standards. From 2022 to 2024, the R&D expenditure as a percentage of revenue was 2.34%, 2.52%, and 2.73%, respectively, consistently falling short of the 3% threshold required for high-tech enterprises. In contrast, comparable companies had average R&D expenditure ratios of 4.31%, 4.59%, and 4.28% during the same period. Notably, the structure of R&D investment showed abnormal fluctuations, with personnel costs surging by 109% in 2024, raising concerns about potential "window dressing" to meet IPO standards [3][11]. Debt and Liquidity Issues - As of June 30, 2025, the company's debt-to-asset ratio stood at 62.13%, significantly higher than the highest ratio of 41.2% among comparable companies. The total interest-bearing debt increased from 600 million yuan at the end of 2022 to 891 million yuan by mid-2025, a rise of 48.5%. The company faced a liquidity gap of 244 million yuan, with cash and cash equivalents amounting to only 95.96 million yuan [5][13]. Dividend Policy - Despite high debt levels and liquidity constraints, the company distributed substantial cash dividends totaling 160 million yuan from 2022 to 2024, representing 51.36% of the cumulative net profit of approximately 311 million yuan during the same period. This raises questions about the rationale behind prioritizing dividends over retaining earnings to address liquidity issues [6][14]. Capacity Utilization and Expansion Plans - The company's capacity utilization rates have been declining, with the main production facility's utilization dropping from 76.15% in 2022 to 53.87% in the first half of 2025. Despite this, the company plans to invest 420 million yuan in a new project to increase production capacity by over 50%, which raises concerns about the necessity and effectiveness of such expansion given the current overcapacity [7][15]. Environmental Compliance Issues - The company has faced multiple administrative penalties, particularly related to environmental compliance, with five out of seven penalties directly linked to environmental issues. The major project for which the company seeks funding is still awaiting environmental approval, posing risks of delays or project cancellations. Previous IPO attempts were hindered by undisclosed environmental penalties, indicating ongoing compliance challenges [8][16].

Group 1 - Shanghai Stock Exchange's Sci-Tech Innovation Board had 1 company listed, while Shenzhen Stock Exchange's ChiNext had 1 company listed during November 18-24 [2] - Hengkun New Materials focuses on key materials for integrated circuits, achieving a first-day stock price increase of 310.61%, closing at 50.54 CNY per share, a 237.16% increase from the issue price of 14.99 CNY, with a total market value of approximately 22.7 billion CNY [2] - Nanwang Digital provides digital construction solutions for the power energy sector, with a first-day stock price increase of 224.78%, closing at 20.51 CNY per share, a 260.46% increase from the issue price of 5.69 CNY, with a total market value of approximately 65.2 billion CNY [2] Group 2 - Two companies passed the listing committee review on the Shanghai Stock Exchange's Sci-Tech Innovation Board, while no companies were reviewed on the Shenzhen Stock Exchange during November 18-24 [3] - Zhenshi Co., Ltd. specializes in fiber-reinforced materials for clean energy applications, providing innovative solutions across various industries [3] - Easy Vision focuses on machine vision equipment for automotive manufacturing, providing solutions for various manufacturing processes [4] Group 3 - One company submitted a listing application on the Shanghai Stock Exchange's Sci-Tech Innovation Board, while one company submitted an application on the Shenzhen Stock Exchange's ChiNext during November 18-24 [4] - Beidou Institute specializes in satellite navigation and aerospace control technologies, with an IPO application accepted on November 21, aiming to raise 709 million CNY for product upgrades and research projects [5] - Financial projections for Beidou Institute show revenues of 243 million CNY, 285 million CNY, and 325 million CNY from 2022 to 2024, with net profits of approximately 76.18 million CNY, 81.71 million CNY, and 82.94 million CNY respectively [6] Group 4 - Green Bio focuses on the research, production, and sales of fragrance products, with an IPO application accepted on November 21, aiming to raise 690 million CNY for production projects and R&D upgrades [10] - Financial projections for Green Bio show revenues of 631 million CNY, 735 million CNY, and 961 million CNY from 2022 to 2024, with net profits of approximately 68.14 million CNY, 92.92 million CNY, and 150 million CNY respectively [11] Group 5 - Hong Kong Stock Exchange had 1 company listed during November 18-24 [13] - Innovation Industry focuses on aluminum industry chain, with a first-day stock price increase of 32.76%, closing at 14.59 HKD per share, with a total market value of approximately 29.2 billion HKD [14] Group 6 - Six companies passed the hearing on the Hong Kong Stock Exchange's main board during November 17-24 [18] - Notable companies include Yujian Xiaomian, a Chinese noodle restaurant operator, and Jinyan High-tech, specializing in coal series kaolin [19][20] Group 7 - Several companies submitted listing applications on the Hong Kong Stock Exchange during November 17-24, including Kanop, Dongshan Precision, and NobiKan [25][31][34] - Kanop focuses on industrial robots and aims to enhance R&D capabilities and expand market presence [31] - Dongshan Precision is a leading global PCB supplier, with plans to upgrade production facilities and repay debts [34] Group 8 - NobiKan specializes in AI and digital twin technologies, with a focus on transportation and energy sectors [39] - Financial projections for NobiKan show revenues of 253 million CNY, 362 million CNY, and 403 million CNY from 2022 to 2024, with net profits of approximately 6.3 million CNY, 8.9 million CNY, and 11.5 million CNY respectively [40] Group 9 - Mandi International focuses on skin health and weight management solutions, with a strong market presence in hair loss treatment products [44] - Financial projections for Mandi International show revenues of 982 million CNY, 1.23 billion CNY, and 1.46 billion CNY from 2022 to 2024, with net profits of approximately 202 million CNY, 341 million CNY, and 390 million CNY respectively [45] Group 10 - Lingyi Intelligent Manufacturing aims to provide comprehensive intelligent manufacturing services, with a focus on AI hardware [47] - Financial projections for Lingyi show revenues of 34.5 billion CNY, 34.2 billion CNY, and 44.3 billion CNY from 2022 to 2024, with net profits of approximately 1.56 billion CNY, 2.01 billion CNY, and 1.76 billion CNY respectively [48] Group 11 - Hailan Home aims to optimize sales channels and enhance brand image through its IPO, with a strong market position in men's apparel [51] - Financial projections for Hailan show revenues of 17.9 billion CNY, 20.8 billion CNY, and 20.2 billion CNY from 2022 to 2024, with net profits of approximately 2.06 billion CNY, 2.92 billion CNY, and 2.19 billion CNY respectively [53]

Core Viewpoint - Green Biological Technology Co., Ltd. (hereinafter referred to as Green Biological) is making another attempt to go public (IPO) after two previous unsuccessful attempts, amidst a renewed wave of IPOs in the cosmetics raw material sector [1][2][5]. Company Overview - Green Biological was established in December 1999, focusing on the research, production, and sales of bio-based and fully synthetic fragrances. Its product lines include turpentine, cedarwood oil, and various synthetic fragrances [2][5]. - The company is one of the largest suppliers of methyl cedryl ketone in China, with significant usage in household and high-end perfume products [2][5]. - The founder, Lu Wencong, holds 27.11% of the company's shares, and his daughter holds an additional 9%, making them the actual controllers of the company [6][7]. IPO Attempts - Green Biological's first IPO attempt began in 2018, but it was halted in early 2021 due to issues related to information disclosure and a significant expected drop in net profit [5][9]. - The second attempt in June 2023 also ended in withdrawal due to similar concerns raised by the Shenzhen Stock Exchange regarding environmental issues and innovation capabilities [5][9]. Financial Performance - The company has shown strong revenue growth, with revenues of 594 million, 631 million, and 735 million yuan from 2021 to 2023, representing growth rates of 6.23%, 16.48%, and a compound annual growth rate of 10.92% [9][10]. - Net profits for the same period were 201.7 million yuan, with growth rates of 65.85% and 32.35% in 2022 and 2023, respectively, leading to a compound growth rate of 48.43% [9][10]. - As of the end of 2023, total assets reached 1.433 billion yuan, with a net profit of 92.92 million yuan and a return on equity of 20.65% [10][11]. Market Context - The cosmetics raw material market in China is projected to grow from 1147.80 billion yuan in 2019 to 1603.90 billion yuan by 2024, with a compound annual growth rate of 6.9% [14]. - The recent surge in IPOs among raw material suppliers is attributed to the booming cosmetics industry and favorable regulatory changes, including the establishment of the Beijing Stock Exchange and reforms in the Sci-Tech Innovation Board [15][16][17]. - Green Biological's export revenue has been significant, accounting for over 84% of its main business from 2021 to 2023, with major clients including Procter & Gamble and other international raw material suppliers [11][12].

Core Viewpoint - Recently, the Zhejiang Securities Regulatory Bureau accepted the application for the initial public offering (IPO) and listing of Green Biological Technology Co., Ltd., with the filing date set for July 24, 2025, and the sponsoring institution being Changjiang Securities [1] Group 1: Company Background - Green Biological was established in 1999 and focuses on the research, production, and sales of fragrance products, forming three product series: turpentine oil, cedar oil, and fully synthetic fragrances [6] - The company has previously attempted to apply for an IPO on the ChiNext board, with its last application being withdrawn in September 2024 after multiple updates to the prospectus [5][6] Group 2: Financial Performance - The company's revenue for the years 2021, 2022, and 2023 was 594.38 million, 631.28 million, and 734.76 million yuan respectively, while the net profit attributable to the parent company was 40.74 million, 68.14 million, and 92.92 million yuan [6][7] - In the first quarter of 2024, the company reported a revenue of 238.09 million yuan, representing a year-on-year growth of 51.05%, and a net profit of 40.48 million yuan, showing a year-on-year increase of 123.45% [7] Group 3: Market and Clientele - The company's main export markets are Europe and North America, with foreign sales accounting for 84.38%, 85.95%, and 87.08% of total revenue in 2021, 2022, and 2023 respectively [8][9] - Major clients include Givaudan, Firmenich, and International Flavors & Fragrances (IFF), with sales to the top five customers accounting for 43.90%, 43.98%, and 40.51% of total revenue during the reporting periods [10] Group 4: Future Plans and Funding - The previous IPO application aimed to raise funds for projects including the annual production of 6,800 tons of high-grade fragrance, smart factory construction, and working capital supplementation, with a total planned fundraising of 375 million yuan [10][11] - The total investment for the high-grade fragrance project is estimated at 575.45 million yuan, with 217 million yuan planned to be raised from the IPO [11]