Core Viewpoint - Zhongcheng Zhixin Engineering Consulting Group Co., Ltd. has been approved for IPO by the Beijing Stock Exchange, marking it as the 38th company to pass the review this year, with a focus on providing comprehensive engineering consulting services [1]. Company Overview - Zhongcheng Consulting aims to offer professional technical services including engineering cost, bidding agency, project supervision and management, BIM services, and engineering design [1]. - The company is controlled by Xu Xuele and Lu Jun, with Xu holding a direct stake of 57.40% and an indirect stake of 29.58%, giving them a total voting power of 86.98% [1]. IPO Details - The company plans to publicly issue up to 14 million shares, with an option for an additional 2.1 million shares through an over-allotment option, bringing the total potential issuance to 16.1 million shares [2]. - The funds raised, totaling approximately 199.9 million yuan, will be allocated to projects for building an engineering consulting service network and for research and information technology development [2]. Review Opinions - The review committee has requested the issuer to clarify the authenticity of sales returns from real estate clients and the adequacy of bad debt provisions for accounts receivable [3]. - The committee also inquired about the compliance and innovation of the information system procurement process and the necessity of the information technology construction project [4]. Market Position and Performance - The issuer is required to explain the market potential for its comprehensive consulting and EPC (Engineering, Procurement, and Construction) services, as well as the reasons for performance volatility compared to peers [4].

Core Viewpoint - Zhongcheng Zhixin Engineering Consulting Group Co., Ltd. has received approval for its initial public offering (IPO) on the Beijing Stock Exchange, aiming to raise funds for various projects including engineering consulting service network construction and business expansion [1] Financial Performance - The company reported revenues of 303 million yuan, 368 million yuan, and 396 million yuan for the years 2022, 2023, and 2024 respectively, indicating a revenue growth of 7.39% in 2024 [1] - Net profits for the same years were 64.36 million yuan, 81.06 million yuan, and 105 million yuan, showing a significant increase of 30.02% in 2024 [1] - Key financial metrics for 2024 include: - Revenue: 39.56 million yuan - Net profit attributable to shareholders: 10.54 million yuan - Basic earnings per share: 2.08 yuan - Weighted average return on equity: 33.87% [1]

Group 1 - Four companies are set to present their IPO applications at the upcoming listing committee meetings [1] - Among the companies, Fengbei Biological is expected to raise the most funds, with a target of 750 million yuan for projects including the construction of a 300,000-ton oil acid methyl ester plant and various agricultural microbial products [2][4] - The other companies include Jieke Co., which aims to raise 676 million yuan, Nant Technology with a target of 286 million yuan, and Zhongcheng Consulting planning to raise 200 million yuan [2][6] Group 2 - Fengbei Biological focuses on the comprehensive utilization of waste oil resources and chemical products [4] - Jieke Co. specializes in the research, production, and sales of collaborative robot products, as well as automation system integration [5] - Zhongcheng Consulting provides professional technical services including engineering cost, bidding agency, and project management [6] - Nant Technology is engaged in the research, production, and sales of precision mechanical components [7]

Group 1: Financial Performance - In 2024, the company achieved an operating income of 561 million yuan, a year-on-year increase of 3.09% [5] - The net profit attributable to shareholders was 97.92 million yuan, up 10.86% year-on-year [5] - Total assets reached 853 million yuan, with a growth of 4.07% compared to the beginning of the year [5] - The net asset attributable to shareholders was 425 million yuan, increasing by 5.07% [5] - The cash flow from operating activities was 134 million yuan, a year-on-year increase of 3.90% [5] - The proposed profit distribution plan includes a bonus of 6 yuan (tax included) for every 10 shares and a capital reserve conversion of 1 share for every 10 shares [5][16] Group 2: Business Achievements - The company signed over 8,000 new contracts in 2024, a nearly 10% increase year-on-year [6] - The number of clients in Shenzhen increased by over 40%, and contract amounts in Dongguan doubled [6] - The company ranked 16th nationally in industry think tank rankings, having undertaken 84 research projects and participated in 58 policy studies [6] Group 3: Strategic Planning - The company is currently drafting its "14th Five-Year" strategic plan, focusing on high-quality and sustainable development [7] - Future revenue and profit growth are expected to be driven by digital transformation and innovation [7] Group 4: Digital Transformation - The company has developed platforms such as digital think tanks and digital procurement, enhancing operational efficiency [8][9] - Successful case studies include customized digital procurement platforms for clients like Sun Yat-sen University and South China University of Technology [9] Group 5: Market Expansion - The company has seen an 11.78% year-on-year increase in revenue from outside Guangdong province [12] - Plans to expand into national markets are underway, with subsidiaries established in Shenzhen and Hainan [12] Group 6: ESG Initiatives - The company received the "Outstanding ESG Value Communication Award" in 2024, reflecting its commitment to environmental, social, and governance practices [18] - Initiatives include energy-saving measures, employee rights protection, and participation in public welfare projects [18] Group 7: Governance and Compliance - The company has revised its articles of association and various management systems to enhance governance effectiveness [17] - Continuous supervision by the sponsor, Guotou Securities, confirmed compliance with regulations and effective internal controls [19]

Group 1: Investor Relations Activities - The company held an earnings briefing on April 21, 2025, via the China Securities Network [4] - Participants included the Chairman, General Manager, CFO, and Secretary of the Board [4][5] Group 2: Key Issues Discussed - **Difference between the company and Guangzi International**: The company focuses on bidding and procurement services, while Guangzi International operates in engineering consulting [6] - **Focus areas for 2025**: The company plans to emphasize strategic mergers and acquisitions, deepening reforms, technological innovation, and lean management [7][8] - **Dividend plan**: A cash dividend of 2.00 CNY per 10 shares will be distributed based on the total shares of 15,382,000 as of December 31, 2024 [9] Group 3: Financial Performance and Challenges - **Revenue and profit decline**: The company experienced a decrease in revenue and net profit due to a complex economic environment and intensified competition [10] - **Provincial business contraction**: The company aims to optimize its provincial business layout and enhance client acquisition efforts [11] Group 4: Industry Trends and Company Strategy - **Digital transformation**: The industry is accelerating digitalization, with electronic bidding systems becoming prevalent [13][14] - **Green procurement**: There is a growing emphasis on sustainable practices in procurement processes [14] - **Market outlook**: The company is committed to enhancing its market presence and improving investor relations to create long-term value [15]