Core Viewpoint - The approval process for IPOs at the Beijing Stock Exchange has accelerated, as evidenced by the recent case of Huada Haitan, which submitted its prospectus for an IPO [3][4]. Company Overview - Huada Haitan, founded in 2001 at Zhejiang University, specializes in the research, development, and application of water-based functional materials [8]. - The company is co-controlled by Lin Xianfu and Lü Deshui, who hold 73.79% of the shares [9]. IPO Process - Huada Haitan submitted its IPO application on June 25, and the Beijing Stock Exchange issued an inquiry regarding the application on July 18, raising 11 questions related to the actual controller, innovation characteristics, performance authenticity, and the rationality of fundraising projects [5][6]. Financial Performance - In 2024, Huada Haitan reported revenue of 537 million yuan, with the main product categories being digital paper-based new materials (48% of revenue), water-based ink materials (33%), and food packaging materials (19%) [11]. - The company experienced a significant discrepancy between production and sales growth, with production increasing by 151 million square meters (53% growth) while sales revenue only grew by 19% [11]. - The net profit fluctuated during the reporting period, with figures of 51.53 million yuan, 85.34 million yuan, and 63.47 million yuan, indicating a decline of over 25% in 2024 compared to the previous year [12]. Fundraising Projects - Huada Haitan plans to raise 500 million yuan through the IPO, primarily for projects aimed at expanding production capacity and enhancing technological capabilities [13]. - The projects include a new production line for digital transfer paper and high-end food packaging paper, but their necessity and rationality have been questioned by regulators due to low current capacity utilization rates [14]. Regulatory Scrutiny - The Beijing Stock Exchange has requested explanations regarding the authenticity and sustainability of Huada Haitan's financial performance, as well as the rationale behind several of its fundraising projects [12][15]. - The company’s financial position shows total assets of 743 million yuan and total liabilities of 241 million yuan, indicating a relatively low debt pressure [15].