Core Viewpoint - Hebei Guoliang New Materials Co., Ltd. (Guoliang New Materials) is facing scrutiny regarding its performance and revenue recognition compliance as it seeks to go public on the Beijing Stock Exchange [2][3] Company Overview - Guoliang New Materials specializes in high-temperature industrial refractory materials and provides comprehensive contracting services and products [2] - The company generates nearly 80% of its main business revenue from Hebei Province, yet holds less than 5% market share in North China [4] Industry Competition - The refractory materials industry in China has over 2,000 companies, characterized by low concentration and intense competition [4] - Guoliang New Materials has plans to expand beyond Hebei to regions like East China, but faces challenges with low profit margins in these areas [5] Revenue Recognition Issues - The company's sales model includes overall contracting and direct sales, with revenue recognized based on specific contractual terms [7] - There are significant issues with missing key elements in settlement documents, such as prices and quantities, which have affected revenue recognition [8][9] - For the reporting period from 2021 to June 2024, amounts lacking signatures or seals were 48.06 million, 56.90 million, 47.19 million, and 6.66 million, representing 5.63%, 6.07%, 4.80%, and 1.52% of main business revenue respectively [8] Market Conditions - The refractory materials industry is currently experiencing an oversupply, with a need for balance that may take time to achieve [5][6] - Guoliang New Materials acknowledges the risks of market fluctuations and competition from industry leaders [5][6]