Core Viewpoint - Beikang Testing has successfully passed the listing review by the Beijing Stock Exchange, aiming to raise 179 million yuan for advanced testing instrument development and working capital [1] Company Overview - Beikang Testing is a leading institution in the field of non-ferrous metal inspection and testing technology in China, involved in various sectors including mineral resources testing, technical services, and instrument development [1][2] - The company is recognized as a national-level "specialized, refined, distinctive, and innovative" small giant enterprise and has participated in the formulation of numerous international and national standards [2] Market Position and Financial Performance - Beikang Testing holds a significant market share in the domestic non-ferrous metal inspection sector, ranking first with market shares of 3.01%, 2.72%, and 3.04% in 2021, 2022, and 2023 respectively [3] - The company's revenue for the reporting periods was 94.61 million yuan in 2021, 91.74 million yuan in 2022, 110 million yuan in 2023, and 65.46 million yuan in the first half of 2024 [3] Industry Growth - The global inspection and testing industry has experienced rapid growth, with a market size increase from 107.7 billion euros in 2012 to 278.5 billion euros in 2023, reflecting a growth rate of over 10% [2] - In China, the inspection and testing industry market size grew from 206.51 billion yuan in 2016 to 467.01 billion yuan in 2023, with a compound annual growth rate of approximately 12.36% [2] Regulatory Scrutiny - The Beijing Stock Exchange has raised concerns regarding Beikang Testing's operational independence, the fairness of related party transactions, and the justification for its higher gross margin compared to industry peers [3][4] - The company reported gross margins of 65.59%, 62.65%, 64.69%, and 65.67% for the respective years, significantly higher than the industry average [4] Related Transactions and Justifications - Beikang Testing has disclosed that it engages in related transactions with its controlling shareholder, Minmetals Group, including sales and procurement of testing services [4] - The company asserts that its higher gross margin is primarily due to its arbitration testing business, which has a gross margin of 77.29%, while the gross margin for its commissioned testing business is 50.49%, aligning closely with industry averages [5][6]

Core Viewpoint - Beikang Detection Technology Co., Ltd. has been approved for listing on the Beijing Stock Exchange, marking it as the 33rd company to pass the review this year, with a focus on the development and service of non-ferrous metal inspection and testing technology [1] Group 1: Company Overview - Beikang Detection is a leading domestic institution specializing in the research and development of inspection and testing technology for non-ferrous metal mineral resources, covering various fields including ore and mineral products, smelting products, environmental samples, and advanced materials [1] - The company plans to publicly issue no more than 28.32 million shares, with a potential additional issuance of up to 4.25 million shares through an over-allotment option, bringing the total to a maximum of 32.57 million shares [2] Group 2: Shareholding Structure - The controlling shareholder of Beikang Detection is the Minmetals Group, which directly holds 86.11% of the shares and indirectly holds an additional 1.53% through the Minmetals Research Institute, totaling 87.64% [2] - The State-owned Assets Supervision and Administration Commission holds 100% of Minmetals Group, making it the actual controller of Beikang Detection [2] Group 3: Fundraising and Use of Proceeds - Beikang Detection aims to raise approximately 178.80 million yuan, which will be allocated to the development of advanced testing instrument research bases and testing capacity construction, as well as to supplement working capital [2] Group 4: Review and Inquiry - The review committee raised inquiries regarding the sustainability of performance growth, specifically questioning the reasonableness of the company's gross margin compared to industry peers and the stability of its revenue from instrument business and lithium carbonate testing [3] - Concerns were also raised about the fairness of pricing in related party transactions, particularly regarding the pricing model for services provided to related parties without requiring testing reports [3]

Core Viewpoint - The company, Beikang Testing Technology, is a leading domestic service provider in the non-ferrous metal inspection and testing industry, with a market share of only 3% [1][2]. Group 1: Company Overview - Beikang Testing Technology specializes in the research and development of inspection and testing technologies for non-ferrous metal resources, covering various fields including ores, smelting products, and advanced materials [2]. - The company is recognized as a national-level "specialized, refined, distinctive, and innovative" small giant enterprise and holds several certifications, including being a national high-tech enterprise [2]. Group 2: Financial Performance - The company achieved operating revenues of 91.74 million yuan, 110.47 million yuan, and 148.02 million yuan for the years 2022, 2023, and 2024, respectively [4]. - The net profit attributable to the parent company, excluding non-recurring gains and losses, was 33.15 million yuan, 41.66 million yuan, and 50.63 million yuan for the same years [4]. - The company expects a revenue of approximately 81 million to 90 million yuan for the first half of 2025, representing a year-on-year growth of 23.75% to 37.50% [7]. Group 3: Market Position - The company's market share in the non-ferrous metal inspection and testing sector was 3.01%, 2.72%, and 3.04% for the years 2021, 2022, and 2023, respectively, ranking first in the industry [3][2]. Group 4: Client and Supplier Relationships - The controlling shareholder, Minmetals Technology Group, is both a major client and the largest supplier of the company, raising questions about the company's independence [8][10]. - The revenue contribution from the controlling shareholder decreased from 6.23% in 2022 to 2.79% in 2024, indicating a shift in client concentration [8]. Group 5: Profitability Metrics - The company's gross profit margin significantly exceeds that of comparable companies, with margins of 62.65%, 64.69%, and 61.43% for 2022, 2023, and 2024, respectively, compared to an average of 46.83%, 47.21%, and 44.35% for peers [15][16]. - The sales expense ratio for the company was notably lower than that of comparable companies, at 1.78%, 1.96%, and 1.25% for the same years, while the industry average was around 11.60% [17][18]. Group 6: Dividend and Financial Health - The company has distributed a total of 30.4 million yuan in dividends over the reporting period, with negative financial expenses each year, indicating strong financial health [20][21]. - The company plans to raise 178.79 million yuan through its IPO, with a portion allocated for the development of an advanced testing instrument research base [22].

Company Overview - Beikang Testing Technology Co., Ltd. (referred to as "Beikang Testing") is a leading domestic research and service institution for non-ferrous metal inspection and testing technology, primarily engaged in the R&D of inspection and testing technology for non-ferrous metal mineral resources, technical services, and instrument development [1][2] - As of the signing date of the prospectus, the Mining and Metallurgy Group directly holds 86.11% of the company's shares, making it the controlling shareholder, with the State-owned Assets Supervision and Administration Commission holding 100% of the Mining and Metallurgy Group [1] Industry Growth - The global inspection and testing industry has maintained rapid growth of over 10% annually, with the market size increasing from €107.7 billion in 2012 to €278.5 billion in 2023 [1] - In China, the inspection and testing industry market size grew from ¥206.51 billion in 2016 to ¥467.01 billion in 2023, with a compound annual growth rate of approximately 12.36% [1] Financial Performance - Beikang Testing's revenue from inspection and testing services for the years 2022, 2023, and 2024 is projected to be approximately ¥0.91 billion, ¥1.1 billion, and ¥1.38 billion respectively, with major clients including leading companies like Mining and Metallurgy Group and Shandong Gold [2][5] - The total revenue for the company during the reporting period is estimated at approximately ¥0.92 billion, ¥1.10 billion, and ¥1.48 billion, with fluctuating gross margins of 62.65%, 64.69%, and 61.43% respectively [7][8] Revenue Composition - The main revenue source for Beikang Testing is its inspection and testing business, which focuses on ores, mineral products, and smelting products, while other business areas remain relatively small [2][5] - The company’s total revenue for 2024 is projected to be ¥1.48 billion, with the inspection and testing business contributing ¥1.38 billion [5][8] Market Position - Beikang Testing has been authorized as a national quality inspection and testing center for non-ferrous metals since 1985 and has ranked first in market share in the domestic non-ferrous metal mineral product inspection and testing service sector, with market shares of 3.01%, 2.72%, and 3.04% in 2021, 2022, and 2023 respectively [7] Future Projections - For the first half of 2025, the company expects revenue between ¥0.81 billion and ¥0.90 billion, representing a year-on-year growth of approximately 23.75% to 37.50% [9][10] - The projected net profit for the same period is estimated to be between ¥0.308 billion and ¥0.350 billion, with a growth rate of approximately 7.83% to 22.53% [10] R&D Investment - Beikang Testing has been investing in R&D, with expenditures as a percentage of revenue being 5.57%, 7.44%, and 9.32% during the reporting period, which is lower than the industry average [10] - The company plans to raise approximately ¥1.79 billion through its IPO to fund advanced testing instrument R&D and enhance testing capabilities [10]