Core Viewpoint - Green Biological Technology Co., Ltd. (referred to as "Green Biological") has submitted its IPO application for the third time on November 21, 2025, after two previous unsuccessful attempts since December 2020. The company aims to raise approximately 690 million yuan through this IPO [2][3]. Company Overview - Founded in 1999, Green Biological specializes in the production of essential oils, including turpentine and cedarwood oil, and is a significant supplier of sandalwood fragrance products in China. It is also one of the largest suppliers of methyl cedryl ketone and has mastered the production technology of turpentine ketone [3][4]. - The company has established long-term partnerships with major clients such as Givaudan, DSM-Firmenich, and Procter & Gamble, with the top five customers accounting for approximately 43.98% to 40.51% of sales revenue from 2022 to 2025 [4][5]. Financial Performance - Green Biological's revenue from 2022 to 2025 is reported as 631 million, 735 million, 961 million, and 548 million yuan, respectively, with net profits of 68.14 million, 92.92 million, 150 million, and 94.58 million yuan [23]. - The company's gross profit margins have shown improvement, increasing from 23.67% in 2022 to 31.51% in the first half of 2025 [23]. IPO Attempts and Challenges - The company has faced regulatory scrutiny and has been penalized for past information disclosure violations, which contributed to the withdrawal of its IPO applications in the past [6][11]. - Green Biological's first IPO attempt in December 2020 was withdrawn due to concerns over undisclosed environmental penalties and a significant expected drop in net profits for 2021 [9][12]. - The second attempt in June 2023 also faced challenges, leading to a withdrawal in September 2024 after two rounds of inquiries from the Shenzhen Stock Exchange [21]. Governance and Management - The founder, Lu Wencong, is currently 83 years old, raising concerns about the company's governance and succession planning. His daughter, Lu Wei, has been involved in the company since 2016 and is positioned to take over [21][23]. - The company has a high concentration of ownership among its top shareholders, with the top ten individual shareholders being current or former employees, holding a combined 63.15% of shares [35][36]. Research and Development - Green Biological's R&D expenditure has consistently been below 4% of its revenue, which is lower than the industry average of over 4% [27][28]. - The company reported a total R&D investment of 59.45 million yuan from 2022 to 2024, with a notable increase in personnel costs in 2024 [29]. Cash Flow and Dividend Policy - Despite a high debt level, Green Biological has maintained significant cash dividends, distributing a total of 249 million yuan from 2018 to 2024, which is 46.98% of its total net profit during that period [33][34]. - The company has a projected operational funding requirement of 370 million yuan while holding only 95.89 million yuan in liquid assets [33]. Future Plans - The IPO proceeds are intended for expanding production capacity, including a project to produce 6,300 tons of high-grade fragrances, with an investment of 420 million yuan allocated for this purpose [37][38].