Core Viewpoint - The company Future Materials is making its third attempt to list on the STAR Market, aiming to become the third listed company under the "Dongyue System," led by Zhang Jianhong, despite facing significant challenges in the process [1][2]. Group 1: IPO Attempts and Challenges - Future Materials initiated its IPO process in October 2020 but faced interruptions due to the debt issues of its former controlling shareholder, leading to a change in actual control and a halt in the listing plan [2]. - After changing its actual controller to Dongyue Group in September 2023, Future Materials resumed its IPO efforts but faced setbacks due to incomplete application materials and regulatory misunderstandings, resulting in a second withdrawal of its application [2]. - The company submitted its prospectus to the Shanghai Stock Exchange in June 2023 and is currently undergoing the inquiry phase, but it has been included in the 2025 second batch of IPO on-site inspections by the China Securities Association [2][3]. Group 2: Financial Performance and Operational Issues - Future Materials reported a revenue of 640 million yuan in 2024, a decline of 11.23% year-on-year, and a net profit of 165 million yuan, down 28.26%, primarily due to a downturn in the chemical materials industry and increased market competition [5]. - The company's production capacity utilization rates are notably low, with the utilization rate for perfluorinated proton exchange membranes at 45.25% and other key materials at 35.44%, raising questions about the rationale behind its planned fundraising of 2.446 billion yuan for capacity expansion [5]. - The company has also faced challenges in product quality and customer relationship management, with the return and exchange rate of products increasing from 1.41% of revenue in 2022 to 6.18% in 2024, attributed to ongoing product development and quality standard issues [6]. Group 3: Dongyue System Influence - Zhang Jianhong, the founder of Future Materials, is a key figure in the "Dongyue System," which includes Dongyue Group, listed in Hong Kong, and Dongyue Silicon Materials, listed in A-shares, indicating a strong capital network [8]. - The company has a complex ownership structure with Zhang controlling 35.50% of the voting rights through various partnerships, despite a relatively low direct shareholding, which poses risks of diluted control [8]. - Future Materials has significant transactions with related parties, with procurement from Dongyue Group companies accounting for over 65% of its operating costs in recent years, raising concerns about the authenticity of its financial performance and potential conflicts of interest [9].

Core Viewpoint - Shandong Dongyue Future Hydrogen Energy Materials Co., Ltd. (Future Materials) has been selected for an IPO site inspection, which is considered one of the strictest IPO reviews, raising concerns about its IPO prospects [1][2]. Group 1: IPO Process and Challenges - Future Materials' IPO application was accepted on June 27, 2023, and it was selected for the second batch of IPO site inspections in 2025 [1]. - The new regulations state that even if a company selected for site inspection withdraws its application, the inspection will still proceed, and regulatory penalties may apply for any issues found [2]. - As of July 18, 2023, Future Materials' IPO review status was updated to "inquiry," indicating that the process is ongoing despite the site inspection [2]. Group 2: Company Performance and Financials - Future Materials has shown overall revenue growth during the reporting period, but 2024 is projected to see a decline in both revenue and net profit compared to 2023 [3]. - Revenue figures for 2022, 2023, and 2024 are 524 million, 721 million, and 640 million respectively, with a year-on-year growth of 37.60% in 2023, but a decline of 11.23% in 2024 [3]. - Net profit for the same years is 143 million, 230 million, and 165 million, with a growth of 60.84% in 2023 and a decline of 28.26% in 2024 [3]. Group 3: Production Capacity and Utilization - The company faces challenges with low capacity utilization rates for its main products, which are critical for its IPO success [6]. - For example, the capacity utilization rates for perfluorinated proton exchange membranes were 9.00%, 10.29%, and 45.25% for 2022, 2023, and 2024 respectively [6]. - Other products also show low utilization rates, such as perfluorinated ion exchange resins at 42.00%, 71.72%, and 53.11% [6]. Group 4: Fundraising and Investment Plans - Future Materials plans to raise 2.446 billion for various projects, including a 3 million m²/a perfluorinated proton membrane project and a 5,000 t/a melt-processable polytetrafluoroethylene (PFA) project [10][12]. - The company aims to significantly increase the production capacity of its high-performance fluorinated functional membranes to meet growing market demand [10]. - However, the necessity of expanding capacity is questioned due to the current low utilization rates of existing production [10][13].