Core Viewpoint - Jiangsu Yongda Chemical Machinery Co., Ltd. (Yongda Co.) has had its IPO review status updated to "meeting postponed" by the Beijing Stock Exchange, raising concerns about revenue recognition, internal control measures, and the stability of operating performance [2] Company Overview - Yongda Co. was established in 2009 and is engaged in the research, design, manufacturing, sales, and related technical services of pressure vessels in various fields, including basic chemicals, coal chemicals, refining and petrochemicals, photovoltaics, and pharmaceuticals [5] - The company aims to raise 608 million yuan through its IPO, which will be used for the construction of a heavy chemical equipment production base and to supplement working capital [5] Industry Context - In the context of improving conditions in the photovoltaic industry, Yongda Co. entered the sector in 2021 through the Leshan GCL-Poly Energy Silicon Project [5] - Since the second half of 2023, there has been a phase of supply-demand imbalance across the entire photovoltaic industry chain, leading to a significant drop in new orders for Yongda Co.'s products in this sector, from a peak of 271 million yuan in 2023 to just 17 million yuan in 2024, with expectations of no orders in the first half of 2025 [5] Financial Performance - Revenue from Yongda Co.'s pressure vessel products in the photovoltaic sector from 2022 to the first half of 2025 was 95 million yuan, 26 million yuan, 156 million yuan, and 6 million yuan, accounting for 13.74%, 3.62%, 19.30%, and 1.99% of total revenue, respectively [6] - As of the end of the third quarter, the company's accounts receivable balance was 194 million yuan, with 60 million yuan attributed to photovoltaic sector clients, and a bad debt provision of 37 million yuan, representing over 60% of the total [6]

Core Viewpoint - Yongda Co., Ltd. is set to hold its listing meeting on November 26, 2023, after applying for an IPO on the Beijing Stock Exchange to raise 458 million yuan for capacity expansion [2][9]. Company Overview - Yongda Co., Ltd. specializes in the research, design, manufacturing, sales, and related technical services of pressure vessels, which are sealed devices that withstand internal or external pressure for storing, transporting, or processing gases and liquids [3]. - The company's product range includes reaction pressure vessels, heat exchange pressure vessels, separation pressure vessels, and storage pressure vessels, serving industries such as basic chemicals, coal chemicals, petrochemicals, photovoltaics, and pharmaceuticals [3]. Founding and Ownership Structure - Yongda Co., Ltd. was co-founded by Li Jin and Gu Yuwen in August 2009, with Li Jin having extensive experience in the mechanical manufacturing industry prior to founding the company [4]. - As of the IPO, Li Jin, his father Li Changzhe, and his spouse hold 61.62%, 7.74%, and 17.20% of the shares, respectively, totaling 86.56% of the ownership [4][5]. - Li Jin transferred 71% of his shares to his father in 2016, which was later diluted to 61.62% due to external capital increases [4]. IPO Fundraising and Project Details - The IPO originally aimed to raise 608 million yuan, but this was reduced to 458 million yuan, a decrease of approximately 25% [9][10]. - The funds will be used for the construction of a heavy chemical equipment production base, which is expected to add a production capacity of 30,000 tons per year for large and long pressure vessels [12]. - The project has already commenced construction, with significant portions of the funds allocated for building and equipment costs [12]. Regulatory Scrutiny and Market Demand - The company faced scrutiny regarding the necessity and rationality of its fundraising projects, particularly concerning the need for additional working capital, which was ultimately removed from the fundraising plan [10][11]. - As of September 2023, Yongda Co., Ltd. has contracts worth 282 million yuan for super-large pressure vessels, accounting for 23.34% of its total orders, indicating a need for improved market expansion for new products [13].

Core Viewpoint - Jiangsu Yongda Chemical Machinery Co., Ltd. (Yongda Co.) has received approval for its IPO on the Beijing Stock Exchange, with Guotai Junan Securities as the sponsor. The company specializes in the research, design, manufacturing, sales, and related technical services of pressure vessels in various fields including basic chemicals, coal chemicals, refining, petrochemicals, photovoltaics, and pharmaceuticals [2]. Financial Performance - Yongda Co. is projected to achieve revenues of 696 million yuan, 712 million yuan, and 819 million yuan for the years 2022, 2023, and 2024 respectively, with net profits of 112 million yuan, 131 million yuan, and 107 million yuan during the same period [2]. - As of December 31, 2024, total assets are expected to be approximately 1.3 billion yuan, with total equity of about 665 million yuan. The asset-liability ratio is projected to decrease from 64.03% in 2022 to 47.19% in 2024 [3]. - The company’s gross profit margin is expected to improve from 27.91% in 2022 to 28.73% in 2024, while the net profit margin is projected to decline slightly [3]. IPO Details - Yongda Co. aims to raise 608 million yuan through the IPO, which will be allocated to the construction of a heavy chemical equipment production base and to supplement working capital [4][5]. - The total investment for the first phase of the heavy chemical equipment production base is estimated at 591 million yuan, with 557 million yuan planned to be funded through the IPO proceeds [5]. Shareholding Structure - Li Changzhe holds 61.62% of the company’s shares, making him the controlling shareholder. His family members, including his son Li Jin and daughter-in-law Gu Xuhong, collectively hold 86.56% of the shares [6][7]. - Li Jin serves as the chairman and general manager, while Li Changzhe and Gu Xuhong hold other significant positions within the company [7].