Core Viewpoint - Jiangsu Riyu Photovoltaic New Materials Co., Ltd. (Riyu Photovoltaic) has submitted a listing application to the Hong Kong Stock Exchange, aiming to raise funds for the development of advanced technologies [1] Group 1: Business Overview - Riyu Photovoltaic specializes in the manufacturing and sales of conductive silver paste and metallization paste, covering various technology routes such as PERC, TOPCon, BC, and HJT [2] - The company's conductive silver paste products cover almost all mainstream technology routes, but its R&D expenditure is only one-tenth of that of comparable companies like Dike [5][6] Group 2: Financial Challenges - The company has long faced funding issues, with negative operating cash flow leading to a reliance on external financing to maintain cash flow balance, resulting in a debt ratio exceeding 70% [3][9] - From 2022 to 2024, Riyu Photovoltaic's net cash used in operating activities was -126 million, -128 million, and -539 million, indicating a continuous and accelerating cash outflow [10] Group 3: Supplier and Customer Concentration - Riyu Photovoltaic's procurement is highly concentrated, with the top five suppliers accounting for approximately 98.4% to 89.3% of total procurement from 2022 to 2024 [8] - The company is heavily reliant on a few major customers, with revenue from the top five customers constituting 99.8%, 96.7%, and 74.8% of total revenue from 2022 to 2024, leading to increasing accounts receivable [13] Group 4: R&D and Cost Structure - The company plans to use the funds raised from the IPO for R&D in advanced technologies, including TOPCon metallization solutions and low-temperature metallization solutions for various types of solar cells [5] - The rising silver prices have significantly increased raw material costs, with raw material costs accounting for 87.8% to 88.3% of revenue from 2022 to 2024, which is notably higher than the industry average of 50%-70% [8]