Core Viewpoint - Kunlun United has decided to terminate its IPO application on the Beijing Stock Exchange due to strategic development considerations, despite previously extending the validity of its application [1][2]. Group 1: IPO Process and Regulatory Scrutiny - Kunlun United's IPO application was accepted on June 28, 2024, and it completed the second round of inquiries by May 16, 2025 [1]. - This marks the second failed attempt for Kunlun United to go public, having previously withdrawn its application for the Shanghai Stock Exchange in March 2024 after initial inquiries [2]. - Regulatory bodies have raised concerns regarding the company's business substance, innovation characteristics, and the authenticity of its revenue growth, requiring clear and understandable disclosures [2][5]. Group 2: Business Model and Core Competencies - Kunlun United operates as an IT infrastructure solution provider, focusing on consulting-driven solutions and IT operation services, without engaging in the production of products [4][6]. - The company has identified 13 core technologies that are unique and innovative, contributing over 80% of its revenue, but these technologies are not easily comparable to industry standards [6][9]. - The company has been asked to clarify the distinction between its IT infrastructure solutions and IT asset management services, as well as the nature of its business contracts [7][8]. Group 3: Financial Performance - From 2021 to 2024, Kunlun United reported revenues of 1.651 billion, 2.067 billion, 2.134 billion, and 2.061 billion yuan, respectively, with net profits of 75.03 million, 84.93 million, 95.19 million, and 97.15 million yuan [10]. - The company has experienced a decline in the number of clients with transaction amounts below 2 million yuan, which has been deemed reasonable by the company [12]. Group 4: Fundraising and Investment Projects - Kunlun United plans to raise 458 million yuan through its IPO, with significant portions allocated for establishing operational headquarters and upgrading its smart operation platform [13][14]. - The company has faced scrutiny regarding the necessity and rationality of its large-scale office space acquisitions, with regulators questioning the alignment of these investments with industry practices [15][16]. - In response, Kunlun United has asserted that its investment in office space and personnel is justified and aligns with its operational needs and market demands [17].