Core Viewpoint - Qingdao Yisen New Materials Co., Ltd. plans to invest 1.5 billion yuan to establish a wholly-owned subsidiary in Lianyungang, Jiangsu Province, raising concerns about the feasibility of the project given its current financial status [2][3]. Financial Performance - In 2024, Yisen New Materials reported a revenue of 195 million yuan, a mere 4.10% increase compared to the previous year, significantly down from a 64.78% growth in 2022 [4][5]. - The total assets of the company stood at 156 million yuan, with cash holdings of approximately 20.6 million yuan, accounting for 13.18% of total assets [4]. - The company's debt situation includes short-term loans of 52.7 million yuan, representing 33.73% of total assets, with a debt-to-asset ratio of 46.27%, which has increased from the previous year [4]. Business Structure and Risks - Yisen New Materials has a highly concentrated core business, primarily producing high-end functional hydrocarbon resin products, which accounted for 94% of total revenue in 2024 [6][7]. - The company’s revenue from domestic markets was 120 million yuan with a gross margin of 17.58%, while international market revenue was 72 million yuan with a lower gross margin of 10.50% [7]. - The company operates two subsidiaries, with significant performance disparity; one subsidiary reported a net profit of 523,500 yuan, while the other incurred a net loss of 1.18 million yuan [7]. Investment and Future Outlook - The planned investment of 1.5 billion yuan aims to enhance market competitiveness and brand influence, focusing on the research, production, and sales of hydrocarbon resins and industrial paints [3][6]. - Yisen New Materials is currently undergoing IPO guidance for the Beijing Stock Exchange, having completed 13 sessions of counseling since December 2021 [9]. - The investment is seen as a critical move for the company to overcome development bottlenecks, but it also poses risks regarding project execution, financial stability, and the success of the IPO [9].