Core Viewpoint - The company Jing Shi Ce Kong has submitted an IPO application to the Hong Kong Stock Exchange, with plans to raise funds for capacity expansion, R&D, marketing, potential acquisitions, and general corporate purposes. However, there are concerns regarding the credibility of its financial information due to significant discrepancies in its financial disclosures and the recent sell-off by a major shareholder [1][3][5]. Group 1: IPO Details - Jing Shi Ce Kong has submitted its IPO application to the Hong Kong Stock Exchange on September 29, 2025, with CICC and浦银国际 as joint sponsors [1][5]. - The company plans to raise approximately 700 million yuan through this IPO [5]. - Prior to the IPO submission, Blue Lake Capital, holding 9.01% of the company, sold its shares at a price significantly lower than the last funding round valuation, raising questions about the company's valuation [1][5]. Group 2: Financial Discrepancies - There are major discrepancies in the financial disclosures between the company's applications to the Shenzhen Stock Exchange and the Hong Kong Stock Exchange, with a difference of 233 million yuan in total liabilities and a 23.07 percentage point difference in the debt-to-asset ratio for 2022 [1][17]. - The company's revenue is projected to grow from 568 million yuan in 2022 to 863 million yuan in 2024, with a compound annual growth rate of 23.3%. However, a significant decline of 29.93% in revenue was reported for the first half of 2025 compared to the previous year [9][10]. Group 3: Ownership and Control - The founder and CEO Wang Lei holds 30.27% of the company, making him the largest shareholder, while CICC, through its investment arm, holds 11.85%, raising concerns about potential conflicts of interest as CICC is also a sponsor for the IPO [7][9]. - The company has undergone five rounds of financing since its establishment in 2011, raising over 300 million yuan, with a post-investment valuation of 1.6 billion yuan as of the D round in December 2022 [3][5].

Core Viewpoint - Jing Shi Measurement and Control has submitted an application for listing on the Hong Kong Stock Exchange, with CICC and Puhui International as joint sponsors [2] Group 1: Financial Information and Fundraising - The company plans to raise funds for capacity expansion, R&D enhancement, sales and marketing activities, potential acquisitions, strategic investments, working capital, and general corporate purposes [3] - The expected fundraising amount is approximately 700 million RMB [8] - Financial discrepancies exist between the company's two IPO applications, with a significant difference of 233 million RMB in total liabilities and a 23.07 percentage point difference in asset-liability ratios [9][21] Group 2: Shareholder Dynamics - Prior to the IPO application, major shareholder Blue Lake Capital sold its 9.01% stake at a price significantly lower than the last financing round valuation, raising questions about the company's valuation [4][9] - CICC, as a major external investor holding 11.85% of the company, is also a joint sponsor for the IPO, leading to concerns about potential conflicts of interest [11] - The founder and largest shareholder, Wang Lei, holds 30.27% of the company, indicating a lack of a clear controlling shareholder status [11] Group 3: Business Performance - The company has experienced fluctuations in revenue, with total revenue projected to grow from 568 million RMB in 2022 to 863 million RMB in 2024, reflecting a compound annual growth rate of 23.3% [15] - However, in the first half of 2025, total revenue dropped by 29.93% year-on-year to 203 million RMB, with adjusted EBITDA turning negative at -116 million RMB [15] - The primary revenue source, online testing equipment, has shown a declining trend, with revenues decreasing by 33.40% and 40.02% in 2023 and the first half of 2025, respectively [17]

Core Viewpoint - China is transitioning from a "manufacturing giant" to a "manufacturing powerhouse," leading to increased activity from industrial manufacturing companies in the capital markets [1] Company Overview - Zhuhai Jingshi Measurement and Control Technology Co., Ltd. (referred to as "Jingshi Measurement and Control") has submitted a listing application to the Hong Kong Stock Exchange, with CICC and Puyin International as joint sponsors [1] - The company specializes in flexible manufacturing technology and applications, integrating measurement, control, and AI technology [1] - Jingshi Measurement and Control is the second-largest provider of PCBA functional and performance testing equipment and services in China, based on projected 2024 revenue [1] Financial Performance - The company experienced a revenue decline in the first half of 2025, with revenue of 203 million yuan, a year-on-year decrease of 29.9%, and a net loss of 118 million yuan [5] - Revenue from 2022 to 2024 showed a growth trend, with figures of 568 million yuan, 698 million yuan, and 863 million yuan respectively [5] - The decline in revenue is attributed to a drop in income from online testing equipment, which fell from 184 million yuan in 2024 to 110 million yuan in 2025 [5] - R&D expenses surged to 41.4% of revenue in the first half of 2025, significantly higher than the 16.8% for the entire year of 2024 [5] Market Position and Growth Potential - Jingshi Measurement and Control operates in the industrial automation sector, focusing on machine vision and intelligent measurement and control, particularly in high-end precision manufacturing [8] - The global market for intelligent TMC equipment and services is projected to grow from $52.3 billion in 2020 to $136.2 billion by 2024, with a compound annual growth rate (CAGR) of 27.0% [8] - The intelligent consumer flexible manufacturing equipment and services market is expected to grow from $21.3 billion in 2020 to $37.9 billion by 2024, with a CAGR of 15.5% [9] Competitive Landscape - The company faces competition from international giants like Hexagon and Keyence, as well as domestic companies such as Tianzhun Technology and Matrix Technology [9] - The rapid evolution of downstream manufacturing technologies presents challenges, requiring continuous investment in R&D to keep pace with technological advancements [9] Conclusion - Jingshi Measurement and Control is positioned in a high-growth sector with strong technical barriers and a focus on key market trends, but it must navigate industry cycles and intense competition to sustain its growth [10]

Core Viewpoint - Zhuhai Precision Measurement Control Technology Co., Ltd. is pursuing an IPO in Hong Kong, revealing significant revenue growth but notable fluctuations in net profit, with a sharp decline in net profit margin in the first half of 2025, indicating underlying operational conditions and potential risks [1] Business Model - The company operates in both industrial and consumer sectors, leveraging over a decade of measurement and control technology to provide customized equipment and services across various industries, including consumer electronics, automotive, and home appliances [2] - The primary business model is ODM, focusing on major clients in consumer electronics, automotive, and home appliances, which allows for stable business through the influence of key customers but also leads to dependency on a few large clients [3] Financial Data - Revenue has shown a compound annual growth rate (CAGR) of 23.3%, with significant changes in product structure, including a decline in online testing equipment revenue in 2023, followed by a recovery in 2024 [4] - Net profit has fluctuated significantly, with figures of 0.714 billion, 0.181 billion, and 0.596 billion from 2022 to 2024, and a loss of 1.184 billion in the first half of 2025, primarily due to increased R&D and administrative expenses [5] Profitability Metrics - Gross margin has varied, with rates of 54.6%, 42.0%, and 43.2% from 2022 to 2024, while net margin has seen a decline from 12.6% to -58.3% in the first half of 2025, influenced by revenue, costs, and expenses [8][9] Related Transactions - The company has overlapping relationships with clients and suppliers, which may pose potential risks to financial stability and operational performance, despite being confirmed to follow normal commercial terms [10] Financial Challenges - High customer concentration risk is evident, with the top five customers accounting for 70.6% to 46.9% of revenue from 2022 to the first half of 2025, indicating vulnerability to changes in orders or financial health of major clients [11] - R&D investment has increased significantly, with expenditures rising from 0.852 billion in 2022 to 0.84 billion in the first half of 2025, representing a growing proportion of total revenue, which may affect profitability if expected returns are not realized [12] - The company faces risks associated with overseas operations, including regulatory changes and trade policy shifts, with revenue from U.S. clients increasing from 0.3% in 2022 to 22.1% in the first half of 2025 [13] Industry Comparison - As of 2024, the company ranks as the second-largest provider of testing equipment and services for consumer electronics in China and is among the top ten ODM providers in smart measurement and control solutions, highlighting its competitive position [14] Customer and Supplier Concentration - The company relies heavily on major clients, with the largest customer contributing 21.9% to 31.8% of revenue from 2022 to the first half of 2025, indicating a need to diversify its customer base [15] - Supplier concentration has varied, with the top five suppliers accounting for 18.1% to 20.9% of total sales costs from 2022 to the first half of 2025, suggesting potential risks related to procurement stability [16] Management and Governance - The founder and chairman holds approximately 23.65% of the issued shares, indicating concentrated ownership and strong control over company decisions [17][18] - The lack of detailed disclosure regarding management compensation and incentive mechanisms raises concerns about alignment between management and shareholder interests [19]