Core Viewpoint - Dongsheng Jin Cai Technology (Group) Co., Ltd. has announced the termination of its public offering of shares and the withdrawal of its listing application on the Beijing Stock Exchange due to ongoing inquiries and performance updates [1][2] Group 1: IPO and Regulatory Concerns - The company's IPO was accepted on December 30, 2024, but faced multiple delays and inquiries, with the latest round of inquiries still unanswered as of the announcement date [1] - Regulatory scrutiny has focused on the company's declining performance and the rationale behind its fundraising projects [2][7] - The bankruptcy restructuring of the company's largest supplier raised concerns about the stability of raw material supply [2][3] Group 2: Financial Performance - Dongsheng Jin Cai's main business involves the research, production, and sales of aluminum alloy element additives, with approximately 90% of revenue derived from this segment [3] - The company experienced significant revenue fluctuations, with reported revenues of 930 million yuan in 2021, 1.045 billion yuan in 2022, and a drop to 658 million yuan in 2023, marking a 37.05% year-on-year decline [4][9] - The net profit attributable to the parent company also saw a decline from 88.34 million yuan in 2021 to 41.39 million yuan in 2023, a decrease of 66.16% [4][9] Group 3: Supply Chain and Raw Material Dependency - The company has been heavily reliant on its largest supplier, Tianyuan Manganese Industry, which accounted for over 46% of its raw material purchases until its bankruptcy restructuring in September 2023 [3][4] - Despite the bankruptcy, the company claims it has alternative suppliers capable of meeting its raw material needs, thus mitigating supply risks [4][9] Group 4: Sales Model and Market Conditions - The company employs a long-term sales model, which has been criticized for potentially amplifying revenue volatility [7][8] - The decline in 2023 performance was attributed to a combination of factors, including a decrease in sales volume and rising costs, as well as a shift in customer behavior towards inventory reduction [9][10] Group 5: Future Outlook and Expansion Plans - Dongsheng Jin Cai plans to raise 350 million yuan for expansion projects, including the production of 60,000 tons of alloy additives and 30,000 tons of aluminum intermediate alloys [11][12] - The company aims to enhance its research capabilities with a new R&D center, although concerns remain regarding the feasibility of its expansion given current production capacity and market conditions [11][15] - The company anticipates a recovery in demand and profitability in 2024, with projected revenues of 745 million yuan and a net profit of 51 million yuan [9][10]

Core Viewpoint - Harbin Dongsheng Jin Cai Technology (Group) Co., Ltd. has suspended its IPO process due to financial report expiration, with concerns raised about its declining revenue and net profit during the reporting period [2][4][7]. Financial Performance - Dongsheng Jin Cai's revenue and net profit have shown a downward trend from 2021 to the first half of 2025, with revenue figures of 9.30 billion, 10.45 billion, 6.58 billion, 7.45 billion, and 3.67 billion, and net profits of 0.95 billion, 1.22 billion, 0.52 billion, 0.56 billion, and 0.20 billion respectively [4][7]. - The compound annual growth rates for revenue and net profit from 2021 to 2024 are -7.15% and -16.22% respectively [4][7]. Market Position - Despite a revenue peak of only 10.45 billion, Dongsheng Jin Cai holds the global market share leader position in aluminum alloy element additives, with a market share of 5.09% in 2024 [8][12]. - The company’s main product, aluminum alloy element additives, accounted for over 82% of its revenue during the reporting period, indicating high dependency on a single product [7][8]. Dividend and Financial Management - In 2022, Dongsheng Jin Cai distributed dividends totaling approximately 1.63 billion, which accounted for 71.06% of its net profit for the period from 2022 to 2024, nearing the regulatory threshold set by the Beijing Stock Exchange [2][12][14]. - The controlling shareholder's family received at least 1.13 billion from dividends, raising concerns about potential financial mismanagement [12][15]. Borrowing and Legal Issues - The company provided loans totaling nearly 70 million to various entities, with some borrowers defaulting, leading to legal disputes [12][15][16]. - The largest borrower, Tianyuan Manganese Industry Group, filed for bankruptcy reorganization, which could impact Dongsheng Jin Cai's financial stability [17]. Market Outlook - The global market for aluminum alloy element additives is projected to reach 11.696 billion in 2024, with domestic market size expected to be 6.966 billion [8][9]. - The company anticipates a gradual recovery in product sales and revenue as market conditions improve following inventory clearances and demand recovery [7][8].

Core Viewpoint - Dongsheng Jinmaterial's significant decline in operating performance in 2023 has drawn attention from the exchange, with a notable drop in both revenue and net profit reported in their latest financial disclosures [2][3][10]. Group 1: Financial Performance - In the first half of 2025, the company reported operating revenue of 367 million yuan, a year-on-year decrease of 0.35%, and a net profit attributable to shareholders of 2.021 million yuan, down 34.15% [13][15]. - The company's revenue from 2021 to the first half of 2025 shows a downward trend, with revenues of 9.30 billion yuan in 2021, 10.45 billion yuan in 2022, 6.58 billion yuan in 2023, and 3.68 billion yuan in the first half of 2025 [6][10]. - The net profit figures for the same period were 946.98 million yuan in 2021, 1.22 billion yuan in 2022, 517.59 million yuan in 2023, and 306.93 million yuan in the first half of 2025, indicating a significant decline in profitability [6][10]. Group 2: Business Operations - Dongsheng Jinmaterial specializes in the research, production, and sales of aluminum alloy element additives and other new metal functional materials, with approximately 90% of its revenue derived from aluminum alloy element additives [3][5]. - The company is one of the few globally capable of mass-producing aluminum alloy element additives with a metal content exceeding 95%, showcasing its technological leadership in the industry [3][5]. - The company faced inquiries regarding its performance fluctuations, low R&D investment, and supply chain risks, which were addressed in their responses to the exchange [5][10]. Group 3: R&D and Innovation - The company's R&D expenditure as a percentage of revenue was reported at 1.66% in 2023, which is lower than the 2%-5% range of comparable companies [16][20]. - Dongsheng Jinmaterial attributed its lower R&D spending to its unique industry characteristics and accounting practices, stating that costs related to trial products were not included in R&D expenses [20][21]. - The company plans to raise approximately 350 million yuan for projects including the production of alloy additives and the establishment of a research center [27][28].