Core Viewpoint - The IPO application of Xi'an Taijin New Energy Technology Co., Ltd. (referred to as "Taijin New Energy") has been temporarily suspended by the Shanghai Stock Exchange, which requires further clarification on future performance and product acceptance delays [2][3][6]. Company Overview - Taijin New Energy is a leading enterprise in Shaanxi Province, focusing on high-end green electrolysis equipment, titanium electrodes, and metal glass sealing products, with applications in various sectors including large computers, 5G communications, consumer electronics, new energy vehicles, and aerospace [10][12]. Financial Performance - From 2022 to 2024, Taijin New Energy's revenue is projected to grow from 1.005 billion yuan to 2.194 billion yuan, with net profits increasing from 98.29 million yuan to 195 million yuan, indicating a consistent upward trend [11]. - In the first half of 2024, the company reported a revenue of 1.167 billion yuan, a year-on-year increase of 17.31%, and a net profit of 105 million yuan, up 8.89% [11]. Sales Model and Financial Structure - The company employs a unique sales settlement model involving "prepayment—delivery—acceptance—warranty," which has resulted in a consistently high debt ratio of around 90%, exceeding the industry average [3][17]. - In 2024, Taijin New Energy's contract liabilities decreased by 900 million yuan, leading to a negative operating cash flow of -470 million yuan, while short-term borrowings surged by 20 times, creating a funding gap of nearly 200 million yuan [3][20]. Production Capacity and Utilization - Despite revenue growth, the production capacity utilization rates for key products have declined significantly from 2022 to 2024, with cathode rollers dropping from 105.41% to 46.05% and the foil-making integrated machine from 96.30% to 18.23% [14][15]. - The company is expanding its production capacity with two fundraising projects aimed at high-end intelligent electrolysis equipment and high-performance composite titanium electrode materials, with planned investments of 439 million yuan and 397 million yuan, respectively [15][16]. Regulatory Scrutiny and Future Outlook - The Shanghai Stock Exchange has raised concerns regarding the potential for significant declines in future performance and the reasons behind the extended acceptance periods for major products, necessitating further explanations from Taijin New Energy [6][8][9]. - The company must address its reliance on prepayments and the cyclical nature of the electrolysis equipment industry to ensure sustainable growth and mitigate financial risks [20].