Core Viewpoint - The company, Green Biological Technology Co., Ltd., has submitted its third IPO application for the ChiNext board after two previous unsuccessful attempts, facing multiple challenges including regulatory penalties and issues with information disclosure [3][41]. Company Overview - Green Biological was established in 1999 and has developed a product system comprising three main series: turpentine, cedarwood oil, and fully synthetic products. It is a significant supplier of sandalwood fragrance products in China and one of the largest suppliers of methyl cedar ketone [4][41]. - The company has long-term partnerships with major clients such as Givaudan, International Flavors & Fragrances, and Procter & Gamble, with the top five customers accounting for approximately 43.98% to 40.51% of sales from 2022 to 2025 [5][43]. Financial Performance - The company reported revenues of 5.4 billion, 5.94 billion, and 6.31 billion yuan from 2020 to 2022, with net profits of 644.3 million, 407.4 million, and 681.4 million yuan respectively. The gross profit margins ranged from 20.37% to 26.6% during the same period [56][57]. - For the first half of 2025, the company expects to raise 690 million yuan through its IPO, with plans to invest in expanding production capacity and upgrading facilities [41][34]. IPO Attempts and Challenges - The first IPO attempt in December 2020 was withdrawn within two months due to undisclosed environmental penalties and a significant expected drop in net profit for 2021 [9][11][50]. - The second attempt in June 2023 also faced scrutiny, leading to a withdrawal in September 2024 after two rounds of inquiries from the Shenzhen Stock Exchange regarding compliance and governance issues [56][58]. Governance and Succession - The founder, Lu Wencao, is currently 83 years old, raising concerns about the company's governance and succession planning. His daughter, Lu Wei, has been involved in the company since 2016 and is set to inherit a significant portion of shares [20][58]. Research and Development - The company's R&D expenditure has consistently been below 4% of revenue, which is lower than the industry average. The R&D costs from 2017 to 2025 were reported to be between 2.34% and 3.78% of revenue [25][26]. - There has been a notable increase in personnel costs within R&D, with 2024 showing a 109% increase compared to 2023, raising concerns about the allocation of R&D funds [27][29]. Cash Dividends and Financial Health - Despite ongoing cash dividends, the company has a significant amount of short-term debt and a low level of liquid assets, indicating potential liquidity issues. The total cash dividends from 2018 to 2024 amounted to 249 million yuan, which is 46.98% of the total net profit during that period [31][32][34]. - The company has maintained a high dividend payout ratio, with dividends exceeding net profits in some years, raising questions about its financial sustainability [31][32].

Core Viewpoint - Green Biological, a well-known company in the spice industry, has submitted its third IPO application to the Shenzhen Stock Exchange, which was accepted on November 21. The company has faced challenges in its previous attempts due to issues related to environmental compliance and profit warnings [1]. Group 1: IPO Journey - Green Biological's IPO journey has been tumultuous, with the first application in December 2020 being withdrawn due to failure to disclose environmental penalties and profit warnings. The second attempt in 2023 was also withdrawn after two rounds of inquiries, with the Shenzhen Stock Exchange focusing on environmental compliance and the company's positioning on the Growth Enterprise Market [1]. - The current IPO aims to raise 690 million yuan, with 420 million yuan allocated to a project for producing 6,300 tons of high-end spices, 120 million yuan for factory facility upgrades, 70 million yuan for R&D enhancements, and 80 million yuan for working capital [1]. Group 2: Company Overview - Established in December 1999, Green Biological is recognized as a "specialized, refined, distinctive, and innovative" enterprise in Zhejiang Province and ranks among the top ten companies in China's light industry spice sector. The company has undertaken four national torch plan projects and has been involved in drafting five national standards and 15 industry standards [1]. - The company specializes in the research and production of nearly 40 types of spice products, including turpentine, cedar oil, and fully synthetic series. Its core products are widely used in daily chemical fragrance formulations, covering household cleaning and personal care products [2]. Group 3: Financial Performance - From 2022 to 2024, the company's revenue is projected to grow from 631 million yuan to 961 million yuan, while net profit is expected to rise from 68.14 million yuan to 150 million yuan. The compound annual growth rates for revenue and net profit over the last three years are 23.35% and 48.59%, respectively. In the first half of 2025, revenue and net profit were reported at 548 million yuan and 94.58 million yuan, respectively [2]. - The company maintains a high export ratio, with over 85% of sales coming from international markets, primarily in Europe and North America. The top five customers account for more than 40% of total revenue [2]. Group 4: Shareholding Structure - The shareholding structure of Green Biological is notable, with the 83-year-old founder and chairman, Lu Wencong, holding 27.11% of the shares. His daughter, Lu Wei, who is also a director and deputy general manager, holds 9%, and together they control 36.11% of the shares. Lu Wei's shares were transferred to her from Lu Wencong in June 2025 [3]. - Prior to the IPO, the top ten individual shareholders are all company executives or former employees, with the core management team holding over 57% of the shares. This governance structure raises questions about the independence and decision-making mechanisms within the company [3].