Group 1 - The core point of the article is that Ruikemai (SZ 001285) held its 14th meeting of the 4th board of directors on October 27, 2025, to review the proposal for the Q3 2025 report [1] - For the year 2024, the revenue composition of Ruikemai is as follows: pneumatic electric control braking systems account for 45.01%, hydraulic electric control braking systems account for 17.74%, aluminum alloy precision die-casting business accounts for 15.9%, other auxiliary active safety automotive components account for 10.92%, and ECAS accounts for 5.75% [1] - As of the report date, Ruikemai has a market capitalization of 9.9 billion yuan [1]

Core Viewpoint - 瑞立科密 is a leading domestic enterprise in the active safety system for commercial vehicles, focusing on the research, development, production, and sales of core components related to vehicle active safety systems and aluminum alloy precision die-casting [1][2]. Company Overview - 瑞立科密's main business includes the development, production, and sales of active safety systems and aluminum alloy precision die-casting parts, along with technical services [1]. - The company has achieved significant technological breakthroughs and market penetration, providing cost-effective solutions to vehicle manufacturers [1]. Market Position - 瑞立科密 has established partnerships with major domestic vehicle manufacturers such as FAW Jiefang, China National Heavy Duty Truck Group, Dongfeng Motor Group, and others, and has also entered international markets [2]. - The company has ranked first in the production and sales of air pressure electronic control braking products, including ABS, for ten consecutive years from 2014 to 2023 [2]. Financial Performance - Projected revenues for 瑞立科密 are approximately 1.33 billion yuan, 1.76 billion yuan, and 1.98 billion yuan for the years 2022, 2023, and 2024, respectively [3]. - Net profits for the same years are estimated to be around 105 million yuan, 239 million yuan, and 275 million yuan [3]. Investment Projects - The total investment for 瑞立科密's projects amounts to approximately 15.22 billion yuan, with significant allocations for the establishment of an automotive intelligent electronic control system headquarters and R&D center [3]. - The company plans to utilize the funds raised from its issuance for various projects, including working capital [3]. Financial Metrics - As of December 31, 2024, total assets are projected to be approximately 2.84 billion yuan, with a net profit of around 274.80 million yuan [4]. - The company has shown a decreasing trend in asset-liability ratio, improving from 50.37% in 2022 to 37.98% in 2024 [4]. - Basic earnings per share are expected to increase from 0.72 yuan in 2022 to 1.99 yuan in 2024 [4].

Core Viewpoint - Guangzhou Ruili Kemi's IPO faces scrutiny due to performance volatility, reliance on related transactions, and internal control risks, despite its leading position in the commercial vehicle active safety system market [1][5]. Group 1: Financial Performance - The company's financial performance is closely tied to the commercial vehicle industry cycle, with a significant profit drop in 2022 due to a 31% decline in commercial vehicle sales, resulting in a net profit decrease from 197 million to 96.96 million [2]. - In 2023, the net profit rebounded to 269 million, but the first half of 2024 saw a 4.52% decline in non-recurring net profit [2]. - Accounts receivable consistently exceed 70% of revenue, with a year-end balance of 566 million in 2023, and a customer concentration of nearly 30% among the top five clients, raising concerns about cash flow pressure [2]. Group 2: Related Transactions - The complex network of related transactions raises concerns, as the controlling shareholder, Ruili Group, is both the largest customer (27.8% of sales in 2021) and a key supplier (12.75% of purchases) [3]. - The company acquired four subsidiaries from Ruili Group for 938 million, with one subsidiary showing a 152% appraisal increase despite reporting a net loss of 2.13 million in 2023 [3]. - A subsidiary was involved in a fraudulent loan scheme, highlighting potential risks of related party fund occupation [3]. Group 3: Internal Control Issues - Systemic internal control vulnerabilities are evident, with a subsidiary using personal accounts for public fund transactions, involving 1.9 million in 2020 [4]. - The company faced fines totaling nearly 300,000 for environmental and safety issues, with a subsidiary penalized for not having waste gas treatment facilities, risking its high-tech enterprise qualification [4]. - Employee rights issues were raised, with 709 employees lacking social insurance and 1,122 without housing fund contributions until just before the IPO application [4]. Group 4: Market and Regulatory Environment - The company plans to raise 1.522 billion for R&D and working capital, but the necessity of expansion is questioned given a 72.77% capacity utilization rate in 2023 and a projected 5.1% decline in commercial vehicle sales in 2024 [4]. - The Shenzhen Stock Exchange has raised concerns about the fairness of related transactions and the adequacy of disclosures regarding the controlling shareholder's historical issues [4]. - The IPO case reflects the regulatory challenges during the deepening of the registration system, balancing technical strength and market share against historical flaws and internal control issues [5].

Core Viewpoint - The company, Guangzhou Ruili Kemi Automotive Electronics Co., Ltd. (hereinafter referred to as "Ruili Kemi"), is preparing for its IPO on the Shenzhen Stock Exchange after a significant period of planning and regulatory scrutiny, amidst concerns regarding its operational stability and complex related-party transactions [3][4][6]. Financial Performance - Ruili Kemi's revenue and net profit have shown significant fluctuations over the years, with revenues of 1.326 billion yuan, 1.760 billion yuan, and 1.977 billion yuan from 2022 to 2024, reflecting year-on-year growth rates of -4.18%, 32.81%, and 12.32% respectively [4][5]. - The net profit attributable to the parent company was 96.96 million yuan, 236 million yuan, and 269 million yuan for the same years, with growth rates of -50.91%, 143.32%, and 14.07% respectively [4][5]. Business Overview - The company specializes in the research, production, and sales of core components related to active safety systems for motor vehicles, with its main products including pneumatic and hydraulic control braking systems [3][6]. - Ruili Kemi's products are supplied to major domestic vehicle manufacturers and exported to Europe and the United States [3]. Market Position - The pneumatic control braking system is the primary revenue source for Ruili Kemi, accounting for 43.27%, 48.81%, and 45.89% of its main business revenue from 2022 to 2024 [6][7]. - The company has maintained a leading position in the industry for its braking products, ranking first in production and sales of anti-lock braking systems (ABS) for ten consecutive years [8]. Industry Context - Ruili Kemi's performance is closely tied to the commercial vehicle market in China, which has seen a decline in sales from 5.133 million units in 2020 to 3.873 million units in 2024, a decrease of 3.92% year-on-year [9][10]. - The growth of the new energy commercial vehicle market is significant, with sales expected to reach 532,000 units in 2024, a year-on-year increase of 28.9% [10]. Related-Party Transactions - Ruili Kemi's largest shareholder, Ruili Group, holds 64.16% of the company and has been a major customer, accounting for 21.10% and 4.51% of the company's revenue in 2022 and 2023 respectively [14][15]. - The company has been scrutinized for its related-party transactions, which have raised concerns about the fairness and commercial rationale behind these dealings [16][18]. Future Prospects - The company plans to raise 15.22 billion yuan through its IPO, with funds allocated to projects aimed at enhancing its production capabilities and market competitiveness [22][24]. - However, the rationale for expanding production capacity amidst underutilization of existing capacity has been questioned, indicating potential challenges ahead [24].