Core Viewpoint - The company Daoshengtianhe Materials Technology (Shanghai) Co., Ltd. is facing significant challenges in its IPO application process, including unstable revenue, high dividend payouts amidst cash flow issues, and internal shareholder disputes, raising concerns about its governance and financial health [1][2][4]. Financial Performance - Daoshengtianhe's revenue from 2020 to 2024 has shown volatility, with figures of approximately 33.32 billion, 31.27 billion, 34.36 billion, 32.02 billion, and 32.38 billion respectively, indicating inconsistent performance [4]. - The net profit during the same period was 1.38 billion, 0.85 billion, 1.1 billion, 1.55 billion, and 1.55 billion, with a significant drop of over 30% in 2021 [4]. - The company has distributed a total cash dividend of 250 million from 2021 to 2023, which accounts for 81.17% of its net profit of 308 million during that period, significantly exceeding the scrutiny standards for large dividends [3][4]. Shareholder Dynamics - The ownership structure of Daoshengtianhe is complicated, with the controlling shareholders, Ji Gang and Zhang Ting, holding 60.47% of the shares and possessing U.S. permanent residency [4]. - There have been low-priced share transfers among shareholders, raising suspicions of potential benefit transfers, which have destabilized the company's equity structure [3]. Governance Issues - The company has experienced severe internal conflicts among shareholders, which have been publicly visible and have negatively impacted corporate governance [2]. - The initial chaotic shareholding arrangements reflect a lack of governance awareness, and ongoing litigation during the IPO process raises concerns about internal stability [2]. Market Position and Strategy - Daoshengtianhe aims to enter the high-end adhesive market, but its existing production capacity utilization rates are low, at 29.65%, 76.35%, and 78.65% for 2022-2024, indicating potential overexpansion risks [6]. - The company’s products are under scrutiny for being classified as "high pollution" and "high environmental risk," which could hinder its market acceptance [6][7]. Environmental Concerns - The company has faced criticism regarding its environmental practices, particularly in relation to its products being similar to those listed as "high pollution" by the Ministry of Ecology and Environment [6][7]. - Despite adjustments to its investment projects, a significant portion of its planned production still aligns with "high pollution" products, raising questions about its environmental compliance and project planning [7].

Core Viewpoint - Daoshengtianhe Materials Technology (Shanghai) Co., Ltd. has successfully passed its IPO review and plans to raise 694 million yuan by issuing up to 58.62 million shares, despite facing financial and governance concerns [3][4]. Financial Performance - Daoshengtianhe's revenue from 2022 to 2024 is projected to be 34.36 billion yuan, 32.02 billion yuan, and 32.38 billion yuan, indicating a slight downward trend, while net profit is expected to rise from 1.08 billion yuan to 1.55 billion yuan, showing a growth of 40.74% from 2022 to 2023 [7][9]. - In the first quarter of 2025, the company reported a revenue of 8.35 billion yuan, a significant increase from 5.01 billion yuan in the same period of 2024, with a net profit of 299.84 million yuan, up 93.5% year-on-year [8][9]. Product and Market Position - Daoshengtianhe specializes in high-performance thermosetting resins and composite materials, with its main products including epoxy resins for wind turbine blades, which accounted for 65.62% of total revenue in 2024 [4][5]. - The company holds a leading position in the epoxy resin market for wind turbine blades, ranking first globally in sales for three consecutive years [4][5]. Governance and Cash Flow Issues - The company has faced scrutiny over its "clearing-style" dividends, having distributed a total of 310 million yuan in dividends from 2020 to 2023, despite negative operating cash flows totaling nearly 800 million yuan during the same period [9][10]. - Daoshengtianhe's accounts receivable were significant, amounting to 1.107 billion yuan, 978 million yuan, and 1.046 billion yuan from 2022 to 2024, raising concerns about cash flow management [10][11]. Customer and Supplier Concentration - The company has a high concentration of sales to its top five customers, which accounted for 71.94%, 68.44%, and 68.19% of total revenue from 2022 to 2024 [11][12]. - Similarly, purchases from the top five suppliers represented 69.60%, 60.84%, and 50.61% of total raw material procurement during the same period [11][12].

Core Viewpoint - Daoshengtianhe Materials Technology (Shanghai) Co., Ltd. has received approval for its IPO, aiming to raise 694 million yuan, down from the initially planned 800 million yuan [1][4]. Group 1: IPO Details - The company plans to use the raised funds primarily for expanding production capacity in new energy adhesives and for repaying bank loans [8][10]. - The updated project scope includes a reduction in the planned production capacity for new energy adhesives from 48,000 tons to 37,000 tons, while increasing the capacity for high-performance composite resin systems from 20,000 tons to 19,000 tons [10][11]. Group 2: Financial Performance - The company reported fluctuating revenues from 2020 to 2024, with total revenues of 3.332 billion yuan in 2020, 3.127 billion yuan in 2021, 3.436 billion yuan in 2022, 3.212 billion yuan in 2023, and 3.238 billion yuan in 2024 [12][13]. - The net profit showed a decline in 2021 but has since increased, with a notable slowdown in growth for 2024 [12][13]. Group 3: Product Segmentation and Market Focus - The company specializes in high-performance thermosetting resin materials, with a significant focus on wind power and new energy vehicles [6][9]. - In 2022, products for wind turbine blades accounted for approximately 80% of the main business revenue, while new energy vehicle adhesives increased from less than 2% in 2021 to 6.20% in 2024 [6][9]. Group 4: Regulatory Scrutiny and Risks - The company faced multiple inquiries from regulators regarding the stability of its financial performance, particularly concerning the declining gross margins of its main products [5][19]. - Concerns were raised about the execution of historical settlement agreements involving the company's actual controller, which could impact governance and operational stability [20][21].

Company Overview - Daosheng Tianhe is one of the largest producers of epoxy resin for wind turbine blades globally, with projected revenue exceeding 3.2 billion yuan in 2024 [1][8] - The company has a high concentration of customers and significant accounts receivable, raising operational concerns [1][22] Financial Performance - Daosheng Tianhe has distributed a total of 250 million yuan in cash dividends over the past three years, while also planning to raise funds for bank loan repayment [8][9] - The company's revenue for 2022, 2023, and 2024 is approximately 3.436 billion yuan, 3.202 billion yuan, and 3.238 billion yuan respectively, with net profits of about 108 million yuan, 152 million yuan, and 155 million yuan [20][21] Product and Market Position - Over 70% of the company's revenue comes from materials used in wind turbine blades, with a high supplier concentration [11][18] - Daosheng Tianhe's products include epoxy resin, polyurethane, and other high-performance thermosetting resin materials, primarily serving the wind power and new energy vehicle sectors [12][15] Industry Context - The global wind power industry has seen significant growth, with a compound annual growth rate of 7.83% from 2015 to 2023, and is expected to maintain a 9.4% growth rate from 2024 to 2028 [26][28] - China and the United States are the largest markets for wind power installations, accounting for over 60% of global new installations in 2023 [28] Competitive Landscape - Daosheng Tianhe has been the top seller of wind turbine blade epoxy resin globally for three consecutive years, but faces intense competition from both domestic and international players [32] - The company’s gross margin has fluctuated due to increased price competition in the domestic market [32]

Core Viewpoint - Daoshengtianhe Material Technology (Shanghai) Co., Ltd. is set to undergo a crucial IPO review on June 13, aiming to raise 694 million yuan for high-end adhesive and resin systems production, as well as debt repayment [1] Group 1: Company Overview - Established in 2015, Daoshengtianhe focuses on high-performance thermosetting resin materials, with three main product lines: wind turbine blade materials, new composite materials, and adhesives for electric vehicles and industrial applications [2] - The wind turbine blade materials series is the primary revenue source, contributing nearly 80% of revenue in 2024, with epoxy resin for wind turbine blades accounting for 65.62% of total revenue [2][3] Group 2: Market Position and Competition - Daoshengtianhe is one of the largest global producers of epoxy resin for wind turbine blades, leading in sales for three consecutive years from 2022 to 2024, while ranking second in domestic sales of structural adhesives [8] - The company has a high customer concentration, with the top five customers accounting for 71.94%, 68.44%, and 68.19% of total revenue from 2022 to 2024 [8][11] Group 3: Financial Performance - Revenue figures for Daoshengtianhe from 2022 to 2024 are 3.436 billion yuan, 3.202 billion yuan, and 3.238 billion yuan, respectively, with net profits of 110 million yuan, 155 million yuan, and 155 million yuan [12] - The average selling price of wind turbine blade epoxy resin has decreased from 25,340.22 yuan/ton in 2022 to 14,818.79 yuan/ton in 2024, with a significant drop of 32.52% in 2023 [15][17] Group 4: Future Prospects - The company plans to utilize 559 million yuan of the IPO proceeds to establish a production capacity of 56,000 tons for high-end adhesives and resin systems, targeting growth in wind energy and electric vehicle sectors [17] - Despite current underutilization in the electric vehicle adhesive segment, with a capacity utilization rate of 78.65% in 2024, the company anticipates benefiting from the global wind energy market growth and expanding its overseas market share [18]