Core Viewpoint - Beijing Vito Electric Co., Ltd. (referred to as "Vito") has disclosed its first-round response to the Shenzhen Stock Exchange's IPO inquiry, indicating its intention to raise approximately 1.594 billion yuan through its IPO process [1] Group 1: Company Overview - Vito's main business includes the research, production, and sales of a series of electrical connection products such as hard connections, flexible connections, contact components, laminated busbars, and CCS, as well as synchronous decomposers [1] Group 2: IPO Details - The IPO application was accepted on June 21, 2025, and entered the inquiry phase on July 4, 2025 [1] - The company is seeking to raise around 1.594 billion yuan through this IPO [1] Group 3: Regulatory Inquiry - The first-round inquiry raised questions regarding Vito's industry and business model, competition with peers, and related party transactions [1]

Core Viewpoint - Beijing Vito Electric Co., Ltd. (referred to as "Vito") has updated its prospectus and responded to the first round of inquiries from the Shenzhen Stock Exchange, addressing 17 key issues related to gross margin, operational compliance, related party transactions, and accounts receivable [1] Group 1: Business Performance - Vito's main business includes the research, production, and sales of various electrical connection products and synchronous decomposers. From 2022 to 2024, the company's operating revenue is projected to increase from 1.437 billion to 2.390 billion yuan, with a compound annual growth rate of 29%. The net profit after deducting non-recurring gains and losses is expected to rise from 114 million to 271 million yuan, a 1.4 times increase over three years [2][3] Group 2: Financial Risks - Despite rapid expansion, Vito faces risks such as declining gross margins, falling product prices, and international trade frictions. The gross margin for the main business is expected to decrease from 25.12% in 2024 to 21.78% in the first half of 2025 due to factors like product structure, material price fluctuations, market competition, and order quantities [3] - The average sales price of synchronous decomposers has dropped from 29.60 yuan per unit in 2022 to 17.93 yuan in the first half of 2025, with corresponding gross margins decreasing from 61.14% to 50.69% [3] - Accounts receivable have been increasing, with net amounts at the end of each reporting period rising from 517 million to 1.042 billion yuan, accounting for 48.96% to 51.21% of current assets. The company has recognized bad debt provisions for certain clients facing operational difficulties [5][6] Group 3: Market Position and Competition - The revenue from the new energy vehicle sector has shown an upward trend, accounting for 26.36% to 38.32% of total revenue from 2022 to 2024. This sector remains a key focus for the company's business development [4] - The exit of national purchase subsidies for new energy vehicles in 2023 and intensified competition among traditional car manufacturers and new entrants may pose challenges for Vito if it cannot adapt quickly to market changes [5] Group 4: Related Party Transactions and Compliance - Vito has engaged in related party transactions with suppliers, with procurement amounts from related parties showing a slight decline over the reporting period. The company asserts that these transactions are based on business needs and are conducted at fair prices [6] - The company has faced six administrative penalties related to statistical errors, construction violations, fire hazards, and environmental violations, indicating a need for improved internal controls [6] Group 5: IPO and Future Plans - Vito plans to raise 1.594 billion yuan through its IPO to fund various projects, including the construction of production bases and a research center. The company acknowledges that the benefits from these investments will take time to materialize and that adverse market conditions could impact profitability [7] - The company has reported fluctuating capacity utilization rates for its products, with some products experiencing significant drops in utilization, indicating potential challenges in managing production capacity [7]

Core Viewpoint - Beijing Weitongli Electric Co., Ltd. (referred to as Weitongli) has applied for a change in its listing review status to "inquired" on the Shenzhen Stock Exchange, with a fundraising target of 1.59374 billion yuan [1] Group 1: Business Overview - The company specializes in the research, production, and sales of a series of electrical connection products, including hard connections, flexible connections, contact components, laminated busbars, and CCS, as well as synchronous decomposers [1] - Weitongli aims to provide high-performance electrical connection products and customized solutions to meet the individual needs of global customers, enhancing safety, reliability, sustainability, and intelligence in electrical connections [1] - The company has expanded its application areas from traditional sectors like electric power and rail transportation to emerging industries such as new energy vehicles and wind-solar-storage [1] Group 2: Clientele and Market Position - Weitongli serves high-end clients in the electrical connection product sector, with products recognized by major players in various fields, including Siemens, Schneider, ABB, Hitachi Energy, and GE in the electric power sector [2] - In the new energy vehicle sector, clients include BYD, Stellantis, and others, while in the wind-solar-storage sector, clients include Goldwind Technology and Sungrow Power [2] - The company has received numerous awards and recognitions from its clients, indicating a strong market position and reputation [2] Group 3: Financial Performance - For the fiscal years 2022, 2023, and 2024, the company reported revenues of approximately 1.437 billion yuan, 1.699 billion yuan, and 2.390 billion yuan, respectively, with net profits of approximately 115 million yuan, 186 million yuan, and 271 million yuan [3] - Total assets as of December 31, 2024, are projected to be approximately 2.357 billion yuan, with equity attributable to shareholders of approximately 1.517 billion yuan [4] - The company's asset-liability ratio is expected to rise from 22.90% in 2022 to 40.90% in 2024, indicating a significant increase in leverage [4]