Core Viewpoint - Huada Beidou has submitted its application for an IPO on the Hong Kong Stock Exchange, but it is facing challenges, including a projected loss of 141 million yuan in 2024 and a significantly lower gross margin compared to peers, with 70% of its revenue derived from "arbitrage" [1]. Group 1: Regulatory Feedback - The company received feedback from the regulatory authority regarding compliance with the regulations for overseas issuance and listing, specifically addressing whether there are any prohibitive circumstances for the company and its subsidiaries [1]. - There are concerns about the special shareholder rights arrangements, with only some shareholders agreeing to terminate these rights before the listing, raising questions about the opinions of remaining shareholders and potential obstacles to the issuance [1]. - The progress of state-owned shareholders in the "full circulation" application process is under scrutiny, including the status of shares held by these shareholders and any potential encumbrances [1]. Group 2: Employee Stock Ownership and Incentives - The company has employees who retain stock ownership plan rights after leaving, and there is a need to clarify whether these individuals are holding their rights according to the plan's provisions [2]. - There is a requirement for a conclusive opinion on whether the implemented stock incentives and employee ownership plans involve any benefit transfer [2]. Group 3: Business Operations - The company's business scope includes the development and sales of navigation terminals, mobile communication terminals, and related software products, as well as manufacturing and sales of specialized instruments for navigation, surveying, meteorology, and oceanography [5]. - The company is required to provide details on its business operations, including necessary qualifications and licenses, partnerships with third parties, and compliance with foreign investment regulations [2][5]. - The primary revenue source is from the sale of integrated chips and modules, necessitating clarification on the duration of distribution contracts with major suppliers and the relationship between integrated chips and GNSS chips [2].