Core Viewpoint - The company, Jiaxing Jete New Materials Co., Ltd. (referred to as "Jete New Materials"), is pursuing an IPO on the Beijing Stock Exchange, with a focus on industrial fiberglass cloth production. Despite significant growth in revenue and net profit over the past two years, concerns regarding the authenticity and fairness of its related-party transactions have emerged, particularly in relation to its profitability and market position [1][2][11]. Financial Performance - Jete New Materials reported revenues of 182 million yuan, 208 million yuan, and 229 million yuan for the years 2022, 2023, and 2024, respectively. The net profit attributable to the parent company was 15.74 million yuan, 33.06 million yuan, and 40.26 million yuan for the same years, with a notable growth rate of 110.04% in 2023 and 21.78% in 2024 [2][3]. - The company’s net profit for 2024 is projected to barely exceed 40 million yuan, which is considered the implicit threshold for IPO approval on the Beijing Stock Exchange [2][3]. Related-Party Transactions - A significant portion of Jete New Materials' revenue comes from related-party transactions with Zhejiang Yuli New Materials Co., Ltd., accounting for 13.10%, 14.64%, and 13.48% of total revenue from 2021 to 2024 [3][10]. - The gross profit margin for fiberglass base cloth sold to Yuli New Materials is significantly higher than the overall gross profit margin for the company, raising questions about the legitimacy of these transactions [4][10]. Product Profitability - The gross profit margins for specific products sold to Yuli New Materials, such as the 1617PU and 1619PU fiberglass base cloth, are reported to be between 60% and 70%, which is substantially higher than the overall gross profit margin of the company [7][8]. - The company claims that the high margins are justified due to the advanced production techniques used, although there are doubts about the market acceptance and sales volume of these high-margin products [10][11]. Market Position and Competition - Jete New Materials has a low market share, estimated at approximately 0.87% in the building shading sector and 1.69% in the domestic automotive manufacturing sector for 2023 and 2024, respectively [17]. - The company faces significant competition from larger, non-public companies in the industry, with its revenue being substantially lower than that of its peers, which raises concerns about its long-term sustainability and growth potential [14][15].