Core Viewpoint - Changzhou Aolisi Electric Co., Ltd. (Aolisi) is preparing for an IPO on the Beijing Stock Exchange, but its financial performance shows significant volatility and concerns regarding its core products and profitability [1][2]. Financial Performance - Aolisi's revenue and net profit from 2022 to 2024 were 623 million yuan, 539 million yuan, and 667 million yuan, with net profits of approximately 89.33 million yuan, 52.70 million yuan, and 75.74 million yuan respectively. In 2023, the company experienced a revenue decline of 13.51% and a net profit drop of 41.01% [2][3]. - In the first quarter of 2025, the net profit decreased by 31.5% year-on-year [1]. Product Pricing and Revenue - The average selling price of Aolisi's micro-special motors has decreased significantly, with prices dropping from 124.66 yuan/unit in 2022 to 102.01 yuan/unit in 2024, reflecting a year-on-year decline of 17.12% and 1.27% respectively [4][6]. - The revenue from micro-special motors and components accounted for 72.97%, 69.03%, and 78.88% of total revenue during the reporting period [5][6]. Production Capacity and Utilization - Aolisi's production capacity for micro-special motors increased from 426,000 units in 2022 to 549,000 units in 2024, but the utilization rate for paper shredders dropped from 97.56% in 2022 to 58.04% in 2024 [7][9]. - The company faced a decline in sales volume for paper shredders, contributing to a revenue drop from 145 million yuan in 2022 to 118 million yuan in 2024 [6][9]. Shareholder Dynamics and Dividends - Prior to the IPO, Aolisi distributed over 80 million yuan in dividends, exceeding its net profit of 75.74 million yuan for the year [10][13]. - The controlling shareholder, Li Jiangpeng, and his daughter hold 41.85% of the shares, while other shareholders collectively hold 43.44%, raising questions about control stability [10][13].

Core Viewpoint - Guangdong Bangze Chuangke Electric Co., Ltd. (Bangze Chuangke) has submitted its prospectus to the Beijing Stock Exchange, despite failing to meet performance targets in 2021, leading to the exit of its major investor, Midea Investment, in April 2023 [1][4]. Financial Performance - Bangze Chuangke's revenue from 2021 to 2024 was 1.169 billion, 1.071 billion, 1.168 billion, and 1.510 billion yuan respectively, with net profits of 3.62 million, 7.14 million, 108 million, and 148 million yuan [4][5]. - The company experienced continuous revenue and net profit growth from 2022 to 2024, attributed to increased sales of proprietary brand products, normalization of shipping costs, lower raw material prices, and favorable exchange rates [4][5]. Investment and Shareholder Dynamics - Midea Investment entered in early 2021 with an investment of 68.88 million yuan for an 8.11% stake, but exited after Bangze Chuangke failed to meet a profit target of 80 million yuan for 2021 [4][5]. - The exit was settled through a combination of directed dividends and capital reduction, resulting in Midea Investment receiving approximately 78 million yuan in total [5]. Sales and Marketing Expenses - Sales expense rates have been increasing, reaching 19.56% in 2024, with total sales expenses of 184 million, 222 million, and 295 million yuan from 2022 to 2024 [3][7]. - Platform commissions and service fees accounted for a significant portion of sales expenses, totaling 348 million yuan over three years, exceeding the total net profit of 263 million yuan during the same period [7][8]. Research and Development - Bangze Chuangke's R&D expenses from 2022 to 2024 were 23.05 million, 27.13 million, and 37.89 million yuan, representing 2.15%, 2.32%, and 2.51% of revenue, which is below the industry average [8][9]. - The company focuses its R&D on core products like shredders, but its lower investment in R&D compared to peers raises concerns about its long-term innovation capabilities [8][9].

Company Overview - Guangdong Bangze Chuangke Electric Co., Ltd. (referred to as "Bangze Chuangke") has been accepted for IPO on the Beijing Stock Exchange, with Dongguan Securities as the sponsor, and the accounting firm being Zhihong [2] - Established in March 2005, the company focuses on the independent research and development, original design, multinational production, global retail channel/internet brand sales, and localized services of office and household appliances [2] - Bangze Chuangke utilizes major e-commerce platforms such as Amazon, Walmart, Shopify, and JD.com for online sales, covering mainstream e-commerce channels [2] Financial Performance - As of December 31, 2024, the total assets of the company are approximately 897.38 million yuan, an increase from 623.09 million yuan in 2023 and 498.58 million yuan in 2022 [3] - The total equity attributable to shareholders is approximately 429.25 million yuan in 2024, up from 252.06 million yuan in 2023 and 148.55 million yuan in 2022 [3] - Revenue for the years 2022, 2023, and 2024 is reported at 1.07 billion yuan, 1.17 billion yuan, and 1.51 billion yuan respectively, indicating a growth trend [3] - Net profit has increased significantly from 7.14 million yuan in 2022 to 107.62 million yuan in 2023, and further to 147.93 million yuan in 2024 [3] - The gross profit margin improved from 28.84% in 2022 to 40.12% in 2024 [3] Shareholding Structure - As of the signing date of the prospectus, Chen Chi directly holds 18.05 million shares, accounting for 34.26% of the total share capital, making him the controlling shareholder [4] - Zhang Yong holds 12.10 million shares, representing 22.96% of the total share capital, and serves as the vice chairman [4] - Xu Ning holds 7.50 million shares, which is 14.24% of the total, and through indirect holdings, he has a total of 15.61% [5] - Chen Chi, Zhang Yong, and Xu Ning are identified as the common actual controllers of the company, collectively holding 72.83% of the shares [6] Management Background - Chen Chi, born in April 1968, has extensive experience in the industry and has held various positions in different companies [7] - Zhang Yong, born in January 1965, has a background in engineering and has also managed several companies in the past [8] - Xu Ning, born in October 1966, has a technical background and has served in various managerial roles prior to his current position [7][8]