Core Points - The Beijing Stock Exchange has decided to terminate the review of Kunlun Lian Tong Technology Development Co., Ltd.'s initial public offering (IPO) and listing application [1][2] Company Overview - Kunlun Lian Tong is a professional IT infrastructure solution provider, offering IT infrastructure solutions, IT operation and maintenance services, and IT value-added supply services tailored to the different development stages of enterprises [2] - The company’s IT infrastructure solutions include digital office solutions, cloud computing solutions, and information security solutions [2] IPO Details - Kunlun Lian Tong originally planned to issue no more than 24 million shares (including the base number, excluding the over-allotment option) in the IPO [3] - The company intended to raise approximately 458.44 million yuan (approximately 45.84 million) for business expansion, service system construction, intelligent operation and maintenance platform upgrades, and research and development center construction projects [4][5] - The total investment for the planned projects is 458.44 million yuan, with specific allocations as follows: - Business expansion and service system construction project: 272.07 million yuan - Intelligent operation and maintenance platform upgrade project: 100.32 million yuan - Research and development center construction project: 86.05 million yuan [5]

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 - This marks the second failed attempt for Kunlun United to go public, having previously withdrawn its application for the Shanghai Stock Exchange in March 2024 after initial inquiries [2].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].