Core Viewpoint - MiFu Technology (Zhejiang) Co., Ltd. is addressing governance issues and financial internal control irregularities as part of its IPO review process, while reporting positive revenue and profit growth projections for the upcoming years [3][4]. Company Governance - The actual controllers of MiFu Technology, Gu Qiang, Gu Liugui, and Wang Naijun, collectively control 86.31% of the company's shares, with noted familial relationships among them [3]. - The company has acknowledged governance irregularities, including fund occupation, and is required to explain its governance system and the effectiveness of its rectification measures [3]. Financial Performance - MiFu Technology's main business involves the R&D, production, and sales of key components for automotive fluid pipeline systems and other plastic parts, applicable to both new energy vehicles and traditional fuel vehicles [4]. - Revenue projections for 2022 to 2024 are as follows: 138 million yuan, 202 million yuan, and 273 million yuan, respectively, with net profits of approximately 36.34 million yuan, 58.17 million yuan, and 76.22 million yuan [4]. Financial Metrics - Total assets as of December 31, 2024, are projected to be approximately 523.66 million yuan, up from 320.08 million yuan in 2023 and 235.26 million yuan in 2022 [5]. - The company’s debt-to-asset ratio is expected to decrease from 24.65% in 2023 to 18.88% in 2024, indicating improved financial stability [5]. - The gross profit margin is projected to be 45.31% in 2024, slightly down from 47.43% in 2023, while the net profit margin is expected to remain strong [5].

Core Viewpoint - Mifu Technology (Zhejiang) Co., Ltd. has faced regulatory scrutiny due to significant increases in sales to related parties and a patent dispute with A. Raymond, which may impact its financial performance and customer relationships [1][3][8]. Financial Performance - Mifu Technology reported revenues of 138 million yuan, 202 million yuan, and 273 million yuan for the years 2022, 2023, and 2024 respectively, with a year-on-year growth of 46.04% and 35.29% attributed to the increase in key component product sales [3]. - The company's total assets increased from approximately 235 million yuan in 2022 to about 524 million yuan in 2024, while shareholder equity rose from 191 million yuan to 421 million yuan during the same period [4]. - The net profit attributable to the parent company was 36.34 million yuan in 2022, increasing to 76.22 million yuan in 2024, reflecting a strong growth trajectory [4]. Customer Relationships - The company has seen a significant increase in sales to major customers, with a notable rise in sales to related parties, raising questions about potential conflicts of interest [3][5]. - Among the top five customers, only Pengling Co., Ltd. is a related party, holding a 5% stake in the company through its limited partnership [5]. - Mifu Technology's accounts receivable from Meichen Technology, a major customer, have increased due to the latter's financial struggles, prompting regulatory inquiries into the rationale for continued collaboration [6]. Patent Dispute - Mifu Technology has been involved in a patent infringement lawsuit with A. Raymond, which resulted in a court ruling requiring the company to cease production of certain products and pay damages of 3 million yuan [8]. - The disputed products accounted for a minimal portion of the company's revenue, with sales of approximately 30,930 yuan during the reporting period, representing less than 0.1% of total revenue [8]. Shareholder Dynamics - The company introduced three institutional shareholders in June 2024, raising concerns about potential benefit transfers due to their connections with major customers [9][10]. - Mifu Technology clarified that the investments from these institutional shareholders were based on their positive outlook for the company's future, asserting that there were no special arrangements or benefit transfers involved [12].