IPO Review and Registration Progress - Three IPO applications were accepted last week, including Senhe High-Tech aiming for the Beijing Stock Exchange to raise 490 million yuan, Yisiwei targeting the Sci-Tech Innovation Board with a planned raise of 1.214 billion yuan, and Zhixin Co. applying for an IPO on the Shanghai Main Board with a target of 1.329 billion yuan [2][3] - Senhe High-Tech specializes in the R&D, production, and sales of environmentally friendly precious metal mining agents, with sales revenue from these agents accounting for over 95% of its main business income during the reporting period [2] - Yisiwei focuses on automotive manufacturing machine vision equipment, holding the largest market shares in China’s automotive manufacturing and complete vehicle manufacturing machine vision markets at 13.7% and 22.5% respectively [3] - Zhixin Co. develops and produces automotive welding parts and related molds, with over 70% of its revenue coming from its top five customers [3] Recent IPO Approvals and Upcoming Listings - Huaxin Precision passed its IPO review on June 6, focusing on precision stamping products, with a projected revenue of 1.421 billion yuan in 2024, a 19.49% increase year-on-year [4] - Three companies are set to undergo IPO reviews this week, including Sanxie Electric, which reported steady revenue growth from 287 million yuan in 2022 to 420 million yuan in 2024 [4][5] - United Power, a subsidiary of Huichuan Technology, achieved a revenue of 16.178 billion yuan in 2024, a 72.74% increase, with over 85% of its revenue derived from electric drive systems [5] - Daoshengtianhe, a wind power industry chain company, reported a revenue of 3.238 billion yuan in 2024, a slight increase of 1.13% [6] New Stock Listings and Subscription Dynamics - Two new stocks were listed last week, Zhongce Rubber and Youyou Green Energy, with the latter seeing a significant first-day increase of 68.64% [9][10] - This week, Jiao Da Tie Fa is scheduled to be listed on June 10, with a projected revenue of 335 million yuan in 2024 [10] - Two new stocks are set for subscription this week, including Huazhi Jie and New Henghui, with planned fundraising of approximately 486 million yuan and 519 million yuan respectively [11] Policy and Regulatory Developments - The China Securities Regulatory Commission (CSRC) announced plans to support high-quality unprofitable technology companies in going public, emphasizing the importance of information disclosure and market intermediary verification [12] - The China Listed Companies Association released guidelines for audit committees to enhance compliance and governance among listed companies [13]

Core Viewpoint - The China Securities Regulatory Commission has approved the initial public offering (IPO) registration application of Guangzhou Ruili Kemi Automotive Electronics Co., Ltd. (referred to as "Ruili Kemi") [1] Group 1: IPO Details - Ruili Kemi submitted its prospectus in December 2023, planning to raise 1.6 billion yuan, with the IPO scheduled for April 2025 [3] - The updated prospectus in December 2024 indicates a revised fundraising target of 1.52 billion yuan, a decrease of 80 million yuan from the original plan [3] Group 2: Fund Allocation - The total investment for various projects amounts to approximately 1.6 billion yuan, with specific allocations as follows: - Ruili Kemi Greater Bay Area Automotive Intelligent Electronic Control System R&D Headquarters: 880.78 million yuan - R&D Center Construction Project: 308.05 million yuan - Information Technology Construction Project: 82.79 million yuan - Supplementing Working Capital: 330 million yuan [4] Group 3: Financial Performance - Revenue and net profit figures for Ruili Kemi are as follows: - 2022: Revenue of approximately 1.326 billion yuan, net profit of approximately 105 million yuan - 2023: Revenue of approximately 1.760 billion yuan, net profit of approximately 239 million yuan - 2024: Revenue of approximately 1.977 billion yuan, net profit of approximately 274 million yuan [6] Group 4: Business Overview - Ruili Kemi specializes in the R&D, production, and sales of core components related to active safety systems for motor vehicles, with applications in commercial vehicles, passenger cars, and motorcycles [5] - The company has undergone significant asset restructuring in 2021, acquiring full equity stakes in Wenzhou Qike and Yangzhou Shengsaisi for a total consideration of approximately 889 million yuan [7][8] Group 5: Shareholding Structure - Ruili Group is the controlling shareholder of Ruili Kemi, holding 64.16% of the shares. The actual controllers include Zhang Xiaoping, Chi Shuping, and Zhang Jiarui, who collectively control 71.56% of the shares [10]

Core Viewpoint - Guangzhou Ruili Kemi Automotive Electronics Co., Ltd. has passed the IPO review by the Shenzhen Stock Exchange, marking it as the 14th company to receive approval this year [1][2]. Company Overview - Ruili Kemi specializes in the research, production, and sales of core components related to active safety systems for motor vehicles and aluminum alloy precision die-casting [1]. - The company is a national high-tech enterprise, with its controlling shareholder being Ruili Group, which holds 64.1613% of the company's total shares as of the signing date of the prospectus [1][2]. IPO Details - The company plans to publicly issue no more than 45,044,546 shares, which will account for at least 25% of the total share capital post-issuance [2]. - The intended fundraising amount is approximately 152.16 million RMB, aimed at establishing a smart electric control system R&D headquarters in the Greater Bay Area, a research center, and for working capital [2]. Financial Performance - Ruili Kemi reported main business revenues of 1.298 billion RMB, 1.727 billion RMB, and 1.940 billion RMB over the reporting period, with revenues from the new energy vehicle sector being 192.57 million RMB, 249.94 million RMB, and 317.86 million RMB respectively [3]. - The market share for new energy vehicle revenues was 3.16%, 2.56%, and 2.06% during the same periods, while overseas sales revenues were 65.74 million RMB, 201.62 million RMB, and 311.73 million RMB, representing 5.06%, 11.68%, and 16.07% of main business revenues [3]. Related Party Transactions - The company has engaged in related party transactions with Xinruili, with sales amounts of 272.11 million RMB, 76.47 million RMB, and 34.88 million RMB over the reporting period, constituting 20.53%, 4.34%, and 1.76% of total revenue respectively [4]. - Efforts have been made to reduce related party transactions by switching suppliers for active safety system business with vehicle manufacturers [4].