Core Viewpoint - Tianyuan Biochemical Co., Ltd. is preparing for an IPO on the Shenzhen Stock Exchange, aiming to raise 630 million yuan for industrial development, despite concerns over stagnant revenue and product quality issues [1][3][4]. Financial Performance - The company has maintained profitability over the past three years, with net profits of 162 million yuan, 229 million yuan, and 249 million yuan from 2022 to 2024, showing a growth rate of 41.46% in 2023 and 8.71% in 2024 [4][5]. - However, revenue has stagnated around 1.7 billion yuan for three consecutive years, with slight fluctuations: 1.712 billion yuan in 2022, 1.774 billion yuan in 2023, and 1.750 billion yuan in 2024, indicating a decline of 1.34% in 2024 [4][5]. Research and Development - The company's R&D expense ratio has been low compared to industry peers, with R&D expenses of 43.31 million yuan, 48.04 million yuan, and 74.26 million yuan from 2022 to 2024, representing 2.53%, 2.71%, and 4.24% of revenue respectively [8][9]. - In 2024, R&D expenses increased by 54.58%, attributed to the formal registration of a new pesticide and payments for technical services, but still lag behind the industry average of 4.98% to 5.29% [9]. Distribution and Sales Model - The company heavily relies on a distributor model, with distributor revenues of 1.626 billion yuan, 1.728 billion yuan, and 1.701 billion yuan, accounting for over 96% of total revenue during the reporting period [6][7]. - A significant portion of sales comes from distributors controlled by former employees, contributing 334 million yuan to total revenue over three years [7]. Legal and Compliance Issues - Tianyuan Biochemical has faced multiple legal disputes and administrative penalties, including fines for selling counterfeit pesticides and other compliance issues involving subsidiaries [11][12]. - The company has unregistered properties totaling 11,432.79 square meters, which could pose risks of administrative penalties if deemed illegal [13][14]. IPO and Future Prospects - The IPO aims to raise 630 million yuan for five projects, including a new production facility for pesticide granules, which could replace existing production sites [13]. - Despite the company's claims of being a leader in agricultural technology innovation, concerns remain about its ability to sustain growth and manage operational risks effectively [8][9].

Core Viewpoint - Guangxi Tianyuan Biochemical Co., Ltd. is undergoing a listing review on the Shenzhen Stock Exchange, aiming to raise 629.75 million yuan, and is recognized as a leading enterprise in the pesticide formulation industry with significant technological achievements [1]. Company Overview - The company specializes in the research, production, and sales of pesticide formulations, gradually becoming a leading domestic enterprise in this sector and one of the few with the capability to industrialize innovative pesticides [1]. - It has received two National Science and Technology Progress Awards, highlighting its commitment to innovation in non-patented, created, and high-efficiency pesticide formulations [1]. Financial Performance - The company's operating revenues for the reporting periods were 1.712 billion yuan, 1.774 billion yuan, and 1.750 billion yuan, indicating stable business performance [2]. - Net profits for the same periods were 162 million yuan, 229 million yuan, and 249 million yuan, reflecting a solid profit level [2]. Key Financial Metrics - Total assets as of December 31, 2024, are projected to be 1.618 billion yuan, up from 1.364 billion yuan in 2023 and 1.355 billion yuan in 2022 [3]. - The equity attributable to shareholders is expected to reach 960 million yuan in 2024, compared to 784 million yuan in 2023 and 697 million yuan in 2022 [3]. - The asset-liability ratio is projected to decrease to 44.59% in 2024 from 51.19% in 2023 and 63.18% in 2022, indicating improved financial stability [3]. Profitability and Efficiency - Projected net profit for 2024 is 248.36 million yuan, an increase from 228.35 million yuan in 2023 and 161.89 million yuan in 2022 [4]. - The basic earnings per share are expected to be 2.37 yuan in 2024, up from 2.18 yuan in 2023 and 1.39 yuan in 2022 [4]. - Research and development expenditure is projected to account for 4.24% of operating revenue in 2024, compared to 2.71% in 2023 and 2.53% in 2022, indicating a growing focus on innovation [4].

Company Overview - Tianyuan Biochemical Co., Ltd. (田园生化) is an agricultural technology innovation enterprise established in 2001, with a registered capital of 105 million yuan, located in Nanning, Guangxi Zhuang Autonomous Region [3] - The company specializes in the research, production, and sales of pesticide formulations [3] Market Position - Tianyuan Biochemical ranked among the top five in the national pesticide formulation sales list published by the China Pesticide Industry Association for the years 2022, 2023, and 2024 [3] - According to the latest 2024 annual pesticide industry sales list, the company is ranked sixth among enterprises with sales exceeding 150 million yuan [3] IPO Details - The company’s IPO application was accepted on June 21, with Guohai Securities as the sponsor and Daxin Certified Public Accountants as the auditing firm [3] - Tianyuan Biochemical plans to raise 630 million yuan through the IPO for projects including the construction of a regional R&D center and the establishment of new sales channels for agricultural services [3] Financial Performance - The company reported revenues of 1.712 billion yuan, 1.774 billion yuan, and 1.75 billion yuan for the years 2022, 2023, and 2024, respectively [6] - The net profit attributable to the parent company was 162 million yuan, 229 million yuan, and 249 million yuan for the same years [6] Shareholding Structure - The actual controller of Tianyuan Biochemical is Li Weiguo, who holds 45.08% of the voting rights in the company [5] - Li Weiguo, aged 60, also serves as the head of the company's R&D center [5] Investment Projects - The company has several investment projects, including a regional R&D center construction project with an investment of 1.49934 billion yuan and a new sales channel empowerment project with an investment of 801.75 million yuan [5]