Core Viewpoint - The company, Weitongli Electric Co., Ltd., is preparing for its IPO on the Shenzhen Stock Exchange, aiming to raise 1.594 billion yuan, despite facing challenges in the competitive new energy vehicle market, including price reductions and difficulties in cash collection [1][4]. Group 1: Company Overview - Weitongli specializes in the research, production, and sales of electrical connection products, including hard and flexible connections, contact components, laminated busbars, and synchronous decomposers [3]. - The company ranks first in revenue for hard and flexible connections in the new energy vehicle sector for 2024, and second in laminated busbars [3]. - Weitongli holds 181 authorized patents, including 18 invention patents, indicating a strong focus on technological innovation [3]. Group 2: Financial Performance - The company's revenue for the years 2022 to 2024 shows a compound annual growth rate (CAGR) of 28.98%, while net profit has a CAGR of 54.23% [4]. - Revenue figures for the respective years are 1.437 billion yuan in 2022, 1.699 billion yuan in 2023, and 2.390 billion yuan in 2024, with net profits of 114 million yuan, 187 million yuan, and 271 million yuan [4]. Group 3: Pricing and Cash Flow Challenges - The company anticipates a significant drop in the average selling price of synchronous decomposers due to price reductions starting in the second half of 2025 [6]. - Revenue from synchronous decomposers is projected to be 45.96 million yuan in 2023, 183.08 million yuan in 2024, and 94.04 million yuan in the first half of 2025, with average selling prices decreasing from 29.60 yuan per unit to 17.93 yuan per unit [6]. - Cash flow from operating activities has been negative in the first half of 2025, indicating challenges in cash collection, particularly from new energy vehicle clients [7]. Group 4: Shareholding and Governance - The company's actual controller, Huang Haoyun, holds a 56.57% direct stake and controls 68.33% of the voting rights, indicating a high concentration of ownership [8][10]. - The company has faced multiple administrative penalties in recent years, highlighting issues with internal controls and compliance [10].

Core Viewpoint - Beijing Weitongli Electric Co., Ltd. (referred to as Weitongli) has applied for a change in its listing review status to "inquired" on the Shenzhen Stock Exchange, with a fundraising target of 1.59374 billion yuan [1] Group 1: Business Overview - The company specializes in the research, production, and sales of a series of electrical connection products, including hard connections, flexible connections, contact components, laminated busbars, and CCS, as well as synchronous decomposers [1] - Weitongli aims to provide high-performance electrical connection products and customized solutions to meet the individual needs of global customers, enhancing safety, reliability, sustainability, and intelligence in electrical connections [1] - The company has expanded its application areas from traditional sectors like electric power and rail transportation to emerging industries such as new energy vehicles and wind-solar-storage [1] Group 2: Clientele and Market Position - Weitongli serves high-end clients in the electrical connection product sector, with products recognized by major players in various fields, including Siemens, Schneider, ABB, Hitachi Energy, and GE in the electric power sector [2] - In the new energy vehicle sector, clients include BYD, Stellantis, and others, while in the wind-solar-storage sector, clients include Goldwind Technology and Sungrow Power [2] - The company has received numerous awards and recognitions from its clients, indicating a strong market position and reputation [2] Group 3: Financial Performance - For the fiscal years 2022, 2023, and 2024, the company reported revenues of approximately 1.437 billion yuan, 1.699 billion yuan, and 2.390 billion yuan, respectively, with net profits of approximately 115 million yuan, 186 million yuan, and 271 million yuan [3] - Total assets as of December 31, 2024, are projected to be approximately 2.357 billion yuan, with equity attributable to shareholders of approximately 1.517 billion yuan [4] - The company's asset-liability ratio is expected to rise from 22.90% in 2022 to 40.90% in 2024, indicating a significant increase in leverage [4]