Core Viewpoint - Jiangsu Kangrui New Materials Technology Co., Ltd. (Kangrui New Materials) faces regulatory scrutiny as its IPO application has been selected for on-site inspection, which is a significant hurdle in its listing process [1][2]. Group 1: IPO Process and Regulatory Environment - Kangrui New Materials has entered the inquiry stage of its IPO process after being included in the on-site inspection list published by the China Securities Association [2][3]. - The on-site inspection is a regulatory measure aimed at filtering out companies with potential issues before they go public, with a historical termination rate of 72.73% for companies selected for inspection from 2022 to 2024 [2]. Group 2: Company Background and Financial Performance - Established 24 years ago, Kangrui New Materials is recognized as a national high-tech enterprise with annual revenue approaching 3 billion yuan [4]. - The company reported impressive financial growth, with revenues of approximately 1.05 billion yuan, 2.49 billion yuan, and 3 billion yuan for the years 2022, 2023, and 2024 respectively, reflecting year-on-year growth rates of 136.01% and 20.59% [15]. - The net profit attributable to the parent company also saw significant increases, with figures of approximately 35.85 million yuan, 227 million yuan, and 415 million yuan for the same years [15]. Group 3: Tax Compliance and Financial Control Issues - Kangrui New Materials has faced tax compliance issues, including a fine of 33,000 yuan for tax underreporting during customs declarations, and a total of 6.33 million yuan in tax and penalties related to past tax incentives [8][7]. - The company has also been scrutinized for financial control weaknesses, including improper use of personal accounts for business transactions and non-compliant financial practices, which have since been rectified [25][31]. Group 4: Shareholder Actions and Capital Structure - The controlling shareholders, Zhu Wei and Li Li, have collectively controlled 72.52% of the company, with significant cash dividends distributed in 2022 and 2024 totaling 40 million yuan and 50 million yuan respectively [10][12]. - In September 2023, Li Li and Jiangyin Kangde transferred shares to BYD, realizing approximately 74.99 million yuan in cash [12][14]. Group 5: Research and Development Investments - Kangrui New Materials has increased its R&D expenditures significantly, with amounts of 36.67 million yuan, 48.26 million yuan, and 81.22 million yuan for the years 2022, 2023, and 2024, representing a rising percentage of revenue [18][20]. - The company plans to utilize 904.49 million yuan of its IPO proceeds for R&D center construction and other projects aimed at enhancing its production capabilities [22][23].

Core Viewpoint - Jiangsu Kangrui New Materials Technology Co., Ltd. (Kangrui New Materials) is undergoing a listing review on the Shenzhen Stock Exchange, aiming to raise approximately 1.10493 billion yuan for its operations and expansion in the precision metal materials sector [1]. Company Overview - Kangrui New Materials has over 20 years of experience in the precision metal materials field, focusing on the research, production, and sales of high-precision and high-performance metal materials [1]. - The company has developed a comprehensive technology system centered on titanium alloy smelting, precision rolling, composite rolling, drawing, and heat treatment, and is also involved in metal powder manufacturing, powder metallurgy, and metal 3D printing [1]. Product Portfolio - The product range includes metal layered composite materials, precision metal profiles, polished rods, fine metal wires, and precision metal tubes, covering various materials such as titanium-aluminum composites, titanium alloys, stainless steel, and aluminum alloys [1]. - The primary application areas for Kangrui's products are consumer electronics, industrial equipment, automotive parts, and daily consumer goods, with a significant focus on the consumer electronics sector [1]. Clientele and Partnerships - Major clients in the consumer electronics sector include Company X and Company Y, with stable partnerships established with large manufacturers such as Foxconn, BYD, Changying Precision, Linyi Zhizao, Lens Technology, and Lianfeng Group [2]. Fundraising and Investment Plans - The company plans to allocate the raised funds to several projects, including: - A project for producing 5,000 tons of titanium alloy materials with an investment of 59.81 million yuan - A project for producing 4,000 tons of metal layered composite materials with an investment of 21.64 million yuan - A research and development center with an investment of 9.04 million yuan - Supplementing working capital with 20 million yuan [2]. Financial Performance - Projected revenues for 2022, 2023, and 2024 are approximately 1.053 billion yuan, 2.486 billion yuan, and 2.998 billion yuan, respectively, with net profits of about 47.56 million yuan, 229 million yuan, and 404 million yuan for the same years [2]. - Total assets for 2024 are projected to be approximately 2.670 billion yuan, with a significant increase in equity attributable to the parent company from 375.61 million yuan in 2022 to an estimated 1.328 billion yuan in 2024 [3]. - The company’s debt-to-asset ratio is expected to decrease from 43.06% in 2022 to 30.51% in 2024, indicating improved financial stability [3].