Core Viewpoint - Langhong Technology (836395.BJ) has faced regulatory scrutiny shortly after its listing on the Beijing Stock Exchange due to violations related to the use of raised funds [1][2] Group 1: Regulatory Issues - On June 24, 2023, the China Securities Regulatory Commission (CSRC) Zhejiang Regulatory Bureau issued a warning letter to Langhong Technology for using idle raised funds to purchase financial products worth 20 million yuan before receiving explicit consent from its sponsor [2][3] - The violation occurred just four days after the company went public on September 1, 2022, raising 121 million yuan, with actual funds raised amounting to 107 million yuan [3] - The company was found to have disclosed inaccurate information in its 2022 annual fundraising report due to this violation [2] Group 2: Project Delays - Langhong Technology's fundraising project, aimed at establishing an "Electronic Product Anti-theft Equipment Industrialization Base," was initially scheduled for completion by December 31, 2024, but has been postponed to December 31, 2027, a delay of three years [1][5] - As of the end of 2024, the project had only utilized 23.69 million yuan of the raised funds, with a progress rate of 22.16% [7] - The project faced delays due to changes in land planning in the Binjiang District, leading to a change in the project location to Fuyang District and an increase in the total investment from 170 million yuan to 210 million yuan, while the amount of raised funds remained unchanged [6] Group 3: Financial Performance - Langhong Technology has struggled to maintain stable revenue, hovering around the 100 million yuan mark for seven years, with 2022 revenue at 113 million yuan, a decline of 21.36% year-on-year [8][9] - In 2023 and 2024, the company reported revenues of 117 million yuan and 159 million yuan, reflecting year-on-year growth of 3.02% and 36.63%, respectively [10] - The net profit for 2024 was reported at 57.95 million yuan, a year-on-year increase of 28.17%, attributed to a favorable consumer electronics market [10] Group 4: R&D Investment - In 2024, Langhong Technology significantly increased its R&D expenditure to 12.04 million yuan, a rise of 62.86% year-on-year, driven by the addition of eight new R&D projects and an increase in personnel costs [11] - The number of R&D personnel grew to 42 by the end of 2024, a substantial increase of approximately 180% compared to the previous year [12] - If the company maintains its growth trajectory, it may finally surpass the 200 million yuan revenue threshold [13]

Core Viewpoint - The article highlights the growth and market position of Langhong Technology, a leading company in the electronic product anti-theft display sector, emphasizing its technological advancements and expanding customer base in the global market [2][3]. Company Overview - Langhong Technology, established in 2008 and located in Fuyang District, Hangzhou, is recognized as a national high-tech enterprise and a provincial specialized and innovative small and medium-sized enterprise [2]. - The company is the second-largest globally in the electronic anti-theft display segment, with an overseas market share of approximately 30% [2]. Financial Performance - In 2024, Langhong Technology achieved a revenue of 159 million yuan, representing a year-on-year growth of 36.63%, and a net profit attributable to shareholders of 58 million yuan, up by 28.18% [3]. - Over the past five years, the compound annual growth rates for the company's revenue and net profit attributable to shareholders were 7.21% and 29.68%, respectively [3]. Research and Development - The company places significant emphasis on R&D, holding a total of 327 patents both domestically and internationally as of the end of 2024 [3]. - Langhong Technology aims to enhance its technological capabilities in chip development, integrated circuits, and the Internet of Things to build a comprehensive retail smart security ecosystem [2]. Market Trends - The global electronic anti-theft system market is projected to reach 10.73 billion yuan in 2024, with an expected compound annual growth rate of 3.97% from 2024 to 2030 [4]. - The demand for electronic anti-theft display products is increasing due to the expansion of the consumer electronics market and the emergence of new products driven by AI technology [4].