Core Viewpoint - Hunan Juren New Materials Co., Ltd. (referred to as "Juren New Materials") has received its first round of inquiry from the Beijing Stock Exchange regarding its listing application, focusing on issues such as equity clarity, control stability, the authenticity and sustainability of significant performance growth, and risks associated with declining gross margins [1][3]. Group 1: Equity and Control Issues - The inquiry highlights concerns about equity holding and investment flaws, noting that Juren New Materials has experienced multiple instances of indirect and direct equity holding by shareholders, with founder Tao Dan no longer holding shares directly since 2017 [3]. - The company is required to explain the background, reasons, evolution, and resolution of these equity holding issues, as well as the source and rationale for third-party capital contributions [3]. Group 2: Performance and Profitability Concerns - Juren New Materials reported a significant increase in revenue from 185 million to 476 million yuan from 2022 to 2024, with a growth rate exceeding 50% [3]. - However, the gross margin dropped sharply from 43.37% in 2022 to 28.60% in 2024, raising questions about the sustainability of its pricing strategy and the reasons behind the performance growth [3][4]. Group 3: Supplier and Production Risks - The company faces increased supplier concentration risk, with the top five raw material suppliers' procurement share rising from 50.56% to 79.38%, and the largest supplier, Huafeng Group, accounting for 47.50% [4]. - Juren New Materials has low capacity utilization rates of 48.95% and 56.41% for its products in 2024, yet plans to raise 292 million yuan to build a new plant, prompting scrutiny over the necessity and rationale for this expansion [4][5]. Group 4: Compliance and Financial Scrutiny - The inquiry also addresses compliance issues related to environmental and safety regulations, particularly concerning the handling of hazardous chemicals, with historical violations noted [5]. - Financial details such as trade accounting, research and development expense allocation, and the alignment of sales personnel with business scale are under review, alongside a request for verification of fixed assets and inventory [5].