Core Viewpoint - Yunhan Xincheng, an internet technology company focused on the electronic components supply chain, has received approval for its IPO application after a lengthy 43-month wait, but faces numerous challenges and controversies along its path [1][2]. Company Overview - Yunhan Xincheng provides a one-stop procurement service for the electronic manufacturing industry through its online platform, including product technical solution design, PCBA manufacturing, and technical support from electronic engineers [1]. - The company plans to raise 522 million yuan through its IPO, primarily for upgrading its big data center and component trading platform, building an electronic industry collaborative manufacturing service platform, and constructing intelligent shared warehousing [1]. IPO Journey - The IPO process has been tumultuous, with the company submitting its application to the Shenzhen Stock Exchange in December 2021, updating its prospectus seven times, and undergoing two rounds of review inquiries before finally being approved in November 2023 [2]. - After a wait of one year and four months, the IPO status changed to "registration effective" on July 31, 2025 [2]. Financial Performance - Yunhan Xincheng has experienced a significant decline in both revenue and net profit due to multiple factors, including the semiconductor industry's downturn, destocking, and weak demand, with net profit halving from its peak in 2021 to less than 100 million yuan in 2024 [2]. - The company's cash flow situation is concerning, with net cash flow from operating activities dropping sharply from 188 million yuan in 2022 to less than 30 million yuan in 2024 [3][4]. Research and Development - The company's R&D capabilities have been questioned, as it does not directly engage in the R&D and production of components, and the proportion of R&D expenses to revenue has decreased over the years, recorded at 1.42%, 1.86%, and 1.77% from 2022 to 2024 [2]. Cash Flow and Equity Transfer - The net cash flow from investment and financing activities has also been negative, indicating significant pressure in asset acquisition and debt repayment [3][4]. - Prior to the IPO, the founding team transferred equity to cash out over 100 million yuan, raising concerns about the company's motives and future prospects [3].