Core Viewpoint - Qingdao Huasheng Intelligent Equipment Co., Ltd. has submitted a completion report for its counseling work to the Qingdao Securities Regulatory Bureau, marking a significant step towards its capital market debut [1] Group 1: Company Overview - Huasheng Intelligent was established in 2019 and provides intelligent production line logistics system solutions and intelligent warehousing logistics system solutions across multiple industries, including rubber tire, new energy, and pharmaceuticals [1] - Major clients include Shengkong Co., Guizhou Tire, and Pulin Chengshan, with products also sold in overseas markets such as Vietnam and Thailand, laying a foundation for the company's future international development [1] Group 2: Financial Performance - From 2022 to 2024, the company's operating revenue is projected to grow from 331 million to 733 million yuan, while net profit is expected to increase from 34.82 million to 88.34 million yuan [1] - The compound annual growth rates for revenue and net profit are 50.7% and 61.2%, respectively, reflecting the company's strong growth momentum and good profitability [1] Group 3: IPO Progress - The company is set to officially list on the New Third Board on January 20, 2025, and successfully transitioned to the innovation layer on May 20, 2025, four months after its initial listing [1] - During the IPO process and counseling for listing on the Beijing Stock Exchange, the sponsoring institution assisted in resolving several key issues, confirming that the company meets the necessary conditions to become a listed entity [1]

Core Viewpoint - The report outlines the continuous supervision of the company by Huazhong Securities during the first half of 2025, highlighting the absence of major issues requiring rectification and detailing various risks faced by the company in its operations and financial performance [1][10]. Continuous Supervision Work - Huazhong Securities has fulfilled its continuous supervision responsibilities without identifying any significant issues requiring rectification for the company during the supervision period [1]. Major Risk Factors Operational Risks - The company faces risks related to the inability to develop new customers, which could lead to a decline in operational performance [2]. - Project acceptance times are heavily influenced by clients, potentially causing significant fluctuations in revenue across accounting periods [2]. - Fluctuations in raw material prices, particularly steel and purchased components, pose a risk to business operations and performance [3]. Financial Risks - The company has accounts receivable valued at 481.24 million and contract assets valued at 84.10 million, with potential for bad debts impacting financial performance [4][5]. - Investment projects funded by the IPO may lead to a short-term decline in return on equity due to the time required to realize expected benefits [5]. - The gross profit margin for the first half of 2025 was 18.83%, down from 23.84% the previous year, indicating potential volatility in profitability [5][12]. Technical Risks - The company must continuously innovate and develop new products to maintain competitiveness; failure to do so could adversely affect operations [6]. - Risks exist regarding the potential leakage or theft of core technologies, which could undermine competitive advantages [7]. - The company faces challenges in retaining technical talent, which is crucial for sustaining its competitive edge [7]. Project Management Risks - As the company expands its business scale, the demand for enhanced project management capabilities increases, which could impact operational efficiency if not addressed [8]. Major Violations - There were no significant violations reported for the company during the first half of 2025 [10]. Financial Performance Indicators - The company reported a net profit of 498,700, a 98.05% decrease year-on-year, primarily due to gross margin fluctuations [12]. - Cash flow from operating activities increased by 116.90% to 10.72 million, attributed to improved management of supplier payment terms and inventory turnover [12]. - The net asset value decreased by 1.64% to 827.20 million, mainly due to dividend distributions [12]. Core Competitiveness - The company maintains its core competitiveness in the intelligent warehousing logistics equipment sector, focusing on R&D and manufacturing, with no adverse changes reported in its competitive position [13][14]. R&D Expenditure and Progress - R&D expenses for the first half of 2025 were 32.93 million, a 3.77% increase from the previous year, reflecting the company's commitment to innovation [15]. - The company added 12 new patents and 17 software copyrights, totaling 221 patents and 105 software copyrights by the end of June 2025 [15]. Use of Raised Funds - As of June 30, 2025, the company had a balance of 280.63 million in raised funds, with compliance in the management and use of these funds [17][18]. Shareholding and Management Changes - There were no changes in shareholding or pledging of shares by major stakeholders during the first half of 2025 [19].