Core Viewpoint - Changzhou Tongbao Optoelectronics Co., Ltd. has successfully passed the IPO review on November 13, aiming to raise 330 million yuan for its automotive electronic components manufacturing business [1] Company Overview - Tongbao Optoelectronics is positioned as a manufacturer of automotive electronic components, focusing on the research, production, and sales of automotive lighting systems, electronic control systems, and energy management systems [1] IPO Details - The company’s IPO was accepted on April 27, 2025, and it entered the inquiry stage on May 28 of the same year [1] - The planned fundraising amount for the IPO is 330 million yuan [1] Regulatory Concerns - The listing committee raised concerns regarding the stability and sustainability of the company's operations, particularly in relation to its major customers [1] - The committee requested clarification on the measures taken to address the risks associated with customer concentration and the potential impact of a "yearly reduction" policy implemented by major clients on future performance [1] - Additionally, the committee inquired about the effectiveness of inventory management, specifically regarding the "consignment warehouse" model and internal controls over inventory [1]

Core Viewpoint - Changzhou Tongbao Optoelectronics Co., Ltd. (referred to as "Tongbao Optoelectronics") has initiated its third IPO journey on the Beijing Stock Exchange, raising concerns about its heavy reliance on its largest customer, SAIC-GM Wuling, which has reached 83.35% of its sales in 2024 [1][7][10]. Group 1: IPO Attempts and Challenges - Tongbao Optoelectronics has attempted to go public three times since 2017, changing its underwriting broker each time, which raises questions about underlying issues preventing a successful IPO [1][4]. - The company has faced significant challenges, including a failed IPO attempt in 2018 and another in 2023, with the latest attempt being supported by Dongwu Securities [5][6]. - The company’s IPO counseling approval is nearing expiration, adding pressure to its current attempt to list on the Beijing Stock Exchange [6]. Group 2: Customer Dependency - The company's revenue heavily depends on SAIC-GM Wuling, with sales to this customer accounting for 66.83%, 63.99%, and 83.35% of total revenue from 2022 to 2024, respectively [7][10]. - The concentration of revenue from a single customer raises concerns about the company's operational independence, as it is perceived to be functioning almost as a "processing plant" for SAIC-GM Wuling [10]. - Compared to industry peers, Tongbao Optoelectronics exhibits a significantly higher customer concentration, with no comparable company having over 67% revenue dependency on a single customer [8]. Group 3: Competitive Landscape - Notably, Huayu Vision, which is both a major customer and supplier, poses a unique challenge as it is also a competitor in the automotive lighting sector [11][15]. - The sales revenue from Huayu Vision has increased significantly, indicating a complex relationship where the company is both reliant on and competing with its suppliers [12][14]. - The dual role of Huayu Vision as a customer and supplier raises questions about the sustainability and rationality of such business relationships [14].