Core Viewpoint - Daoshengtianhe Materials Technology (Shanghai) Co., Ltd. is preparing for its IPO on the Shanghai Stock Exchange, focusing on the development, production, and sales of new materials, particularly high-performance thermosetting resin materials used in various industries including wind energy and new energy vehicles [1][11]. Group 1: Company Overview - Daoshengtianhe specializes in the research, production, and sales of new materials, with products including epoxy resins, polyurethanes, acrylics, and organosilicon materials [1]. - The company has three main product lines: materials for wind turbine blades, new composite resin materials, and adhesives for new energy vehicles and industrial applications [1]. - The company is controlled by a couple, Ji Gang and Zhang Ting, who hold over 60% of the shares, raising concerns about potential improper control [3][5]. Group 2: Financial Information - The company plans to raise approximately 1.35 billion yuan to repay debts, despite having distributed 2.5 billion yuan in dividends in recent years [11][17]. - The IPO aims to issue no less than 58.62 million shares, with a total fundraising target of 693.55 million yuan for projects and debt repayment [11]. - Recent financial performance shows significant revenue fluctuations, with total revenues of 3.33 billion yuan in 2020, 3.13 billion yuan in 2021, and 3.43 billion yuan in 2022 [19]. Group 3: Market Position and Risks - The company has a high customer concentration, with the top five customers accounting for approximately 68% of total sales in recent years [19][20]. - Supplier concentration is also notable, with the top five suppliers representing around 50% of total purchases [21]. - The company has experienced a decline in gross margins, with rates dropping from 33.39% in 2022 to 27.76% in 2024 [16]. Group 4: Production Capacity and Utilization - Daoshengtianhe's production capacity for new energy vehicle adhesives is projected to reach 11,600 tons per year by 2024, with utilization rates increasing significantly [14][15]. - The company has faced challenges in capacity digestion, as the new production capacity is several times greater than existing levels [14]. Group 5: Governance and Control - The company has undergone frequent share transfers since its restructuring in 2020, raising questions about the fairness of these transactions [10][11]. - There have been instances of performance-based agreements with investors, although most have been terminated without adverse effects on the company [10][11].