Core Viewpoint - Hebei Xuhui Electric Co., Ltd. has had its IPO application on the Beijing Stock Exchange terminated after undergoing three rounds of inquiries since its acceptance on December 22, 2023, with the termination date being November 7, 2025 [1][3]. Company Overview - Xuhui Electric specializes in the research, production, and sales of power grid safety control equipment and power quality optimization equipment, serving major clients such as State Grid and Southern Power Grid [3]. - The company has seen its revenue grow from 184 million yuan in 2022 to 245 million yuan in 2023, with a slight decline to 237 million yuan projected for 2024 [3]. - Net profit attributable to shareholders has increased from 40.08 million yuan in 2022 to 45.03 million yuan in 2023, and is expected to reach 48.09 million yuan in 2024 [3]. - For the first half of 2025, the company reported a revenue of 108 million yuan, marking a year-on-year growth of 21.54%, and a net profit of 23.30 million yuan, reflecting a 44.48% increase [3]. Client Base - The top five clients of Xuhui Electric accounted for 71.58%, 66.76%, and 69.41% of total revenue in 2022, 2023, and 2024, respectively [3]. - Sales to the largest client, State Grid, were 105 million yuan, 128 million yuan, and 126 million yuan for the same years, representing 56.94%, 52.12%, and 53.35% of total revenue [3]. Management Changes - Zhang Xuhui, the actual controller of the company, resigned as chairman and general manager on August 11, 2025, due to personal reasons [4]. - Zhang Zhuguang was elected as the new chairman, and Lan Bo was appointed as the new general manager on August 21, 2025 [4][5].

Core Viewpoint - The Beijing Stock Exchange has decided to terminate the review of Hebei Xuhui Electric Co., Ltd.'s application for public stock issuance and listing due to the company's withdrawal of its application [1][2]. Company Overview - Hebei Xuhui Electric Co., Ltd. specializes in the research, development, production, and sales of power grid safety control equipment and power quality optimization equipment, making it a well-known supplier in the domestic power equipment market [2]. - The company's controlling shareholder and actual controller is Zhang Xuhui, who directly holds 28.00% of the shares and indirectly controls a total of 58.40% of the voting rights through various entities [2]. Initial Public Offering Details - Xuhui Electric originally planned to issue up to 42.5 million shares (excluding the exercise of the over-allotment option) and up to 48.875 million shares (including the over-allotment option) [3]. - The company intended to use the raised funds of 30.61969 million yuan for projects including the construction of a smart power equipment factory, a research and development center, and to supplement working capital [4][5]. Fund Allocation - The total investment for the smart power equipment factory project is 28.20557 million yuan, with 23.66557 million yuan planned to be funded from the raised capital [5]. - The research and development center project is estimated at 4.95412 million yuan, fully funded by the raised capital [5]. - An additional 2 million yuan is allocated to supplement working capital [5].

Core Viewpoint - The resignation of Zhang Xuhui, the chairman and general manager of Xuhui Electric, has led to the termination of the company's application for listing on the Beijing Stock Exchange, raising concerns about the impact of this significant personnel change on the company's operations and future prospects [2][14]. Group 1: Listing Application Process - Xuhui Electric submitted its listing application to the Beijing Stock Exchange on December 22, 2023, and underwent three rounds of inquiries over nearly two years [2][7]. - The company announced on October 23, 2025, that it would terminate its listing application and withdraw its submission, following a board meeting held the previous day [2][3]. - The listing process faced delays, with the last inquiry response submitted on December 20, 2024, before the sudden halt in progress [3][4]. Group 2: Financial Performance - Xuhui Electric's revenue fluctuated significantly, with annual revenue around 180 million from 2020 to 2022, but increased to 244 million in 2023, marking a 32.7% year-on-year growth [8][28]. - The company reported a rebound in net profit, with a non-recurring net profit of 45.22 million in 2024, although still below the 49.26 million recorded in 2020 [8][28]. Group 3: Revenue Recognition Issues - The company faced scrutiny regarding the accuracy and compliance of its revenue recognition practices, particularly concerning the long installation and acceptance periods for its products, averaging over 200 days [9][25]. - Multiple inquiries from the Beijing Stock Exchange highlighted concerns about inconsistencies in revenue recognition, including instances where revenue was recognized without customer confirmation of operational reports [25][29]. - The company was required to clarify its internal controls and the validity of its revenue recognition methods, especially in light of significant amounts recognized without proper documentation [25][29]. Group 4: Impact of Leadership Change - Zhang Xuhui's resignation was unexpected and occurred during a critical period for the company's listing application, raising concerns about the stability of the management team [10][21]. - The new chairman, Zhang Shuguang, is the brother of Zhang Xuhui, which may indicate continuity in leadership but also raises questions about governance and potential conflicts of interest [11][12]. - The sudden departure of a key figure like Zhang Xuhui, who had been instrumental in the company's strategy and operations, is seen as a significant risk to the company's future and its listing prospects [10][18].