Core Viewpoint - Chicheng Biotechnology has voluntarily withdrawn its IPO application from the Beijing Stock Exchange, which aimed to raise 210 million yuan due to various operational challenges and financial pressures [2] Group 1: Company Overview - Chicheng Biotechnology specializes in the research, production, and sales of hydrolyzed tannin products derived from natural plant materials, with applications across multiple industries including pharmaceuticals, chemicals, and textiles [2] - The company’s main products include tannic acid, gallic acid, and related biochemical compounds [2] Group 2: Financial Performance - Chicheng Biotechnology's revenue from 2021 to 2023 showed significant fluctuations, with revenues of 360 million yuan, 291 million yuan, and 312 million yuan respectively, while net profits were 61.9 million yuan, 50.3 million yuan, and 48.8 million yuan [3] - The decline in revenue and profit in 2022 was primarily due to a major client, Zhengbang Technology, facing financial difficulties, which led to a significant reduction in orders [3][4] Group 3: Cost Structure and Risks - The cost of raw materials, particularly the reliance on wubeizi and tara powder, constitutes over 60% of the company's main business costs, making it vulnerable to price fluctuations [4] - In the first half of 2024, revenue increased by 25.10%, but net profit only grew by 14.59% due to rising raw material costs [4] Group 4: Inventory and Cash Flow - The company's inventory value as a percentage of total assets was notably high, with values of 96.2 million yuan, 87.2 million yuan, and 105 million yuan, representing 19.88%, 14.77%, and 17.03% of total assets respectively [5] - High inventory levels can lead to cash flow pressures and operational inefficiencies [5] Group 5: Business Expansion - Chicheng Biotechnology established a subsidiary, Hubei Bencao Times Health Industry Co., Ltd., in 2022 to enter the cosmetics sector, but this venture is still in its early stages with limited online sales [5] - Revenue from this subsidiary was minimal, with figures of 32,200 yuan and 127,570 yuan for 2022 and 2023 respectively, indicating challenges in scaling the new business [5]

Summary of Key Points Core Viewpoint - Three companies have withdrawn their IPO applications in the past week, including one from the Shanghai Stock Exchange and two from the Beijing Stock Exchange [1]. Group 1: Company Withdrawals - Qingdao Qinghe Artificial Turf Co., Ltd. is a leading manufacturer of artificial turf, holding a global market share of 12.9% as of 2023 [3]. The company withdrew its IPO application after failing to respond to the first round of inquiries from the exchange [4]. - Xiamen Dongang Technology Co., Ltd. specializes in mobile lighting tools and faced regulatory scrutiny due to the lack of significant differentiation between its products and general lighting equipment [6][8]. The company also withdrew its IPO application [4]. - Wufeng Chicheng Biotechnology Co., Ltd. focuses on the development and production of tannin-based products. The company reported a 26.05% year-on-year decline in its net profit, raising concerns about meeting listing standards [9][10]. Group 2: Financial Performance - Qingdao Qinghe reported total assets of approximately 237.99 million yuan as of June 2024, with a net profit of 6.1 million yuan for the first half of 2024 [4]. - Xiamen Dongang's total assets reached approximately 332.12 million yuan as of September 30, 2023, with a net profit of approximately 33.38 million yuan [7]. - Wufeng Chicheng's total assets were approximately 614.24 million yuan as of December 31, 2023, with a net profit of approximately 48.76 million yuan [10].

Core Viewpoint - The company, Qicheng Biotechnology, has faced significant challenges leading to the termination of its IPO review, primarily due to declining financial performance and concerns regarding its construction projects and compliance issues [1][4][16]. Group 1: Market Position - Qicheng Biotechnology is a leading player in the hydrolyzed tannin industry, holding a global market share of approximately 7.12% in the tannic acid market and 9.07% in the gallic acid market as of 2023, indicating strong competitive positioning [2][3][24]. - The global market size for tannic acid and gallic acid in 2023 was approximately 1.16 billion and 1.91 billion respectively, highlighting the industry's growth potential [2]. Group 2: Financial Performance - The company's revenue has shown a downward trend, with reported figures of 359.76 million, 291.13 million, and 312.38 million for the years 2021 to 2023, respectively, and a projected decline in 2024 [4][17]. - The net profit attributable to shareholders decreased from 52.91 million in 2021 to 39.40 million in 2022, and slightly increased to 40.37 million in 2023, but is expected to drop to 29.85 million in 2024 [4][17]. - The company anticipates a further decline in revenue and net profit for the first quarter of 2025, with expected decreases of 2.94%-10.84% in revenue and 40.33%-48.86% in net profit [5][17]. Group 3: Construction Projects and Compliance Issues - Significant investments in construction projects, such as the Qicheng Biotechnology Industrial Park, have not yet been capitalized, raising concerns about the authenticity and reasonableness of these expenditures [9][10]. - The company has faced scrutiny for not completing necessary construction permits and for starting projects without proper approvals, although local authorities have indicated that these issues are not severe enough to warrant penalties [11][12][14][15]. - The company has been subject to multiple administrative penalties from various regulatory bodies, indicating ongoing compliance challenges [11][12]. Group 4: Market Dynamics and Competitive Landscape - The company has experienced fluctuations in revenue from its industrial tannic acid product, primarily due to changes in customer procurement strategies and market competition [21]. - The demand for mixed feed additives containing tannic acid has declined significantly, with utilization rates dropping to 7.17% and 9.17% in 2023 and 2024, respectively, largely due to the financial struggles of key customers [22]. - The competitive landscape is characterized by price reductions in response to increased market pressure, which has affected the company's profit margins [24].

Core Viewpoint - The article highlights the journey of Tianjin Jiurui Sheng Technology Co., Ltd. and its founder, Professor Zhao Guofeng, in transforming scientific research into practical applications, particularly in the field of high-end photoinitiators and semiconductor materials, showcasing a successful model of technology commercialization from academic research [1][2][3][4][5][6]. Group 1: Company Development - Tianjin Jiurui Sheng Technology Co., Ltd. was founded by Professor Zhao Guofeng, who aimed to convert laboratory research into production capabilities, becoming a model for the commercialization of university research [1][2]. - The company successfully developed a series of domestically produced photoinitiators, breaking foreign monopolies and significantly reducing production costs for domestic industries [2][3]. - Jiurui Sheng was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2019 and has received multiple national recognitions, including being named a national high-tech enterprise [3]. Group 2: Technological Advancements - The company is now focusing on the more complex field of photoresists, which are critical for the semiconductor industry, addressing the long-standing issue of dependence on imports [4]. - Jiurui Sheng has invested 500 million yuan to establish a semiconductor chemical materials R&D platform and production lines for photoresist materials, with some products already in mass production [4][6]. - The company aims to integrate upstream and downstream production processes in the semiconductor supply chain, enhancing the development of high-end photoresists and related materials [4][6]. Group 3: Industry Impact and Future Directions - The company has expanded its product lines to include special inks and coatings, leveraging core technologies to incubate new business entities [4][6]. - In June 2023, Jiurui Sheng established Tianjin Jiurui Sheng Technology Co., Ltd. to apply synthetic biology in traditional plant extraction, addressing industry challenges such as resource scarcity and high energy consumption [5][6]. - The "mother ship + fleet" model adopted by the company demonstrates strong synergy, allowing seamless integration of research outcomes into production, thereby enhancing the overall value chain [6].