As of September 24, among the 34 companies under review on the Science and Technology Innovation Board, two companies have been in the inquiry status for 613 and 330 days respectively since entering this phase, and have not yet completed the disclosure of the first round of inquiry responses.

Statistical data shows that since 2023, the Science and Technology Innovation Board has accepted 75 IPO companies, among which 54 have completed the first round of inquiry responses, with an average duration of 147 days.

Among these 54 IPO companies that have completed the first round of inquiry responses, 5 companies have already registered and become effective, with an average duration of 112 days for the first round of inquiry responses; 32 companies have terminated the review process, with an average duration of 147 days for the first round of inquiry responses; 15 companies are still in the inquiry process, with an average duration of 161 days for the first round of inquiry responses; 1 company has been suspended due to regulatory measures taken by the China Securities Regulatory Commission (CSRC) against its auditing firm, Tianzhi International Certified Public Accountants, which restricted its business activities—Changsha Beidou Industrial Security Technology Research Institute Co., Ltd., with a duration of 78 days for the first round of inquiry responses; 1 company has submitted for registration—Jiangsu Pioneer Precision Technology Co., Ltd., with a duration of 175 days for the first round of inquiry responses.

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Among them, the company with the longest duration for the first round of inquiry responses is Aico Medical Devices (Beijing) Co., Ltd. (hereinafter referred to as "Aico Medical"), which terminated on April 11. Aico Medical entered the inquiry status on May 16, 2023, and did not disclose the first round of inquiry responses until January 16, 2024, a total of 245 days.

Looking at the current situation of the first round of inquiry responses for companies under review, as of September 24, there are 34 companies under review on the Science and Technology Innovation Board, with 31 companies having completed the first round of inquiry responses, with an average duration of 147 days. Among them, 6 companies have submitted for registration, with an average duration of 70 days for the first round of inquiry responses; 2 companies have been suspended due to regulatory measures taken by the CSRC against their auditing firm, Tianzhi International Certified Public Accountants, with an average duration of 70 days for the first round of inquiry responses; 23 companies are still in the inquiry process, with an average duration of 171 days for the first round of inquiry responses.

Among the 31 companies that have completed the first round of inquiry responses, the company with the shortest duration for the first round of inquiry responses is Beijing Yitang Semiconductor Technology Co., Ltd. (hereinafter referred to as "Yitang Shares"), which was accepted on August 5, 2021. Yitang Shares entered the inquiry status on July 15, 2021, and completed the disclosure of the first round of inquiry responses on August 5, 2021, 21 days later. However, since submitting the registration application on September 17, 2021, Yitang Shares has been in the "submission for registration" phase for four years, and the financial data disclosed by the Shanghai Stock Exchange has never been updated, still remaining at the status of the 2021 semi-annual report.

Among the 31 companies that have completed the first round of inquiry responses, the company with the longest duration for the first round of inquiry responses is Shengke Nano (Suzhou) Co., Ltd. (hereinafter referred to as "Shengke Nano"), which was accepted on May 18, 2023. Shengke Nano was accepted by the Shanghai Stock Exchange on June 13, 2023, and entered the inquiry status on the same day, and did not disclose the first round of inquiry responses until January 25, 2024, a total of 226 days.

It is worth noting that among the 3 companies that have not yet completed the first round of inquiry responses, two companies have been in the inquiry status for a much longer time than the longest duration of 226 days among the current companies under review, and have not yet completed the disclosure of the first round of inquiry responses. These two companies are Suzhou Jinyi New Material Technology Co., Ltd. (hereinafter referred to as "Jinyi New Materials") and Beijing Tianxing Medical Co., Ltd. (hereinafter referred to as "Tianxing Medical").

Jinyi New Materials: Net operating cash flow continues to be negative

The official website of the Shanghai Stock Exchange shows that Jinyi New Materials' initial application was accepted on December 30, 2022, and entered the inquiry status on January 20, 2023. As of September 24, 2024, Jinyi New Materials has updated its financial information three times, and has been in the inquiry status for 613 days, but has not yet disclosed its first round of inquiry responses.The prospectus indicates that Jinyi New Materials, established in 2017, is a national high-tech enterprise and a national "specialized, refined, and innovative" "little giant" enterprise specializing in the research and development, production, and sales of advanced inorganic non-metallic powder materials.

In this IPO application, Jinyi New Materials plans to raise 744 million yuan, which will be used for the construction of a new project for the annual production of 5,200 tons of electronic functional nano-particulate new materials and the upgrade of the R&D center construction project.

According to the prospectus, from 2019 to 2021 and from January to June 2022, Jinyi New Materials achieved operating revenues of 144 million yuan, 212 million yuan, 325 million yuan, and 209 million yuan, respectively. In 2020 and 2021, the company's operating revenue growth rates were 47.16% and 53.61%, respectively, showing a rapid growth trend.

With the rapid growth of operating revenue, Jinyi New Materials' net profit has also increased significantly on the basis of turning losses into profits. In 2019, the company was still in a loss-making state, with a net loss of 2.1269 million yuan and a net profit margin of -1.48%. In 2020, the company's net profit turned from loss to profit, reaching 4.8577 million yuan, and the net profit margin rose to 2.29%. In 2021, the company's net profit increased significantly by 614.99% year-on-year, reaching 34.7323 million yuan, and the net profit margin further increased to 10.68%. In the first half of 2022, the company has already achieved a net profit of 29.6624 million yuan, which is approximately 85% of the net profit for the whole year of 2023, and the net profit margin has further increased to 14.2%.

However, while both operating revenue and net profit of Jinyi New Materials show rapid growth, the net cash flow from operating activities has been in a state of net outflow.

From 2019 to 2021 and from January to June 2022, the net cash flow from operating activities of Jinyi New Materials was -34.2464 million yuan, -24.9041 million yuan, -16.7363 million yuan, and -26.7672 million yuan, respectively.

In response, Jinyi New Materials stated that the negative net cash flow from operating activities from 2019 to 2021 and from January to June 2022 was due to, on the one hand, the time difference between the company's sales receipts and procurement payments, and on the other hand, the rapid development of the company's business, the large demand for working capital, and the corresponding expansion of the scale of inventory.

Looking at the relationship between the net cash flow from operating activities and net profit of Jinyi New Materials, the continuous increase in inventory and operating receivables is the main factor leading to the continuous negative net cash flow from operating activities.

From 2019 to 2021 and from January to June 2022, the inventory of Jinyi New Materials increased by 19.5635 million yuan, 37.1053 million yuan, 43.7497 million yuan, and 45.5146 million yuan, respectively, and the operating receivables increased by 71.4584 million yuan, 22.3254 million yuan, 51.755 million yuan, and 19.8388 million yuan, respectively.

Tianxing Medical: Despite ample monetary funds, additional funds are still needed to supplement working capital.The official website of the Shanghai Stock Exchange shows that Tianxing Medical's initial public offering application was accepted on September 26, 2023, and entered the inquiry status on October 30, 2023. As of September 24, 2024, Tianxing Medical had updated its financial information once and had been in the inquiry status for 330 days without disclosing its first round of inquiry responses.

The prospectus indicates that Tianxing Medical is an innovative medical device company in the field of sports medicine, mainly engaged in the research and development, production, and sales of sports medicine implants, active devices and consumables, as well as surgical tools. The implants mainly include polyether ether ketone (PEEK) suture anchors and other shoulder joint implants, as well as tibial plateau locking plates and other knee joint implants; active devices and consumables mainly include plasma surgery equipment, endoscopic surgery shavers, and endoscopic camera systems, among other products.

From 2020 to 2022 and the first three months of 2023, Tianxing Medical achieved operating revenues of 26 million yuan, 73 million yuan, 148 million yuan, and 35 million yuan, respectively, with net profits attributable to the parent company after deducting non-recurring gains and losses of -17.6496 million yuan, 4.5518 million yuan, 38.8132 million yuan, and 3.8678 million yuan, respectively. From 2020 to 2022, Tianxing Medical's operating income maintained continuous growth, with a compound annual growth rate of 136.72%, and the net profit attributable to the parent company after deducting non-recurring gains and losses gradually turned from loss to profit and showed a growth trend.

According to the prospectus, for this initial public offering application, Tianxing Medical plans to raise 1.093 billion yuan, of which 440 million yuan will be used for the Suzhou Smart Factory project, 219 million yuan for product research and development projects, 133 million yuan for marketing network projects, and 300 million yuan for supplementary working capital. In addition, there is 97.7116 million yuan of initial working capital in the 440 million yuan Smart Factory project.

Tianxing Medical stated that after this supplementary working capital is in place, the company's asset liquidity will be improved, which will help the company optimize its financial structure, reduce financial risks, alleviate working capital pressure, and enhance its ability to resist risks.

However, from the data, it seems that Tianxing Medical is not short of money.

At the end of 2020-2022 and the first three months of 2023, Tianxing Medical's cash and cash equivalents balance were 18 million yuan, 202 million yuan, 273 million yuan, and 293 million yuan, respectively, accounting for 28.99%, 80.78%, 88.10%, and 86.31% of current assets, and 23.18%, 71.32%, 78.65%, and 76.59% of total assets, respectively. The company's cash and cash equivalents are mainly bank deposits, with only 0.04 million yuan in cash on hand at the end of 2020.

Regarding the significant year-on-year increase in the cash and cash equivalents balance at the end of 2021, Tianxing Medical stated that the main reason was the receipt of capital increases from shareholders such as BEST ALIVE, Suzhou Junlian, and OrbiMed.

At the end of 2020-2022 and the first three months of 2023, Tianxing Medical's accounts receivable balance was 978,300 yuan, 484,000 yuan, 33.643 million yuan, and 32.469 million yuan, respectively, accounting for 3.7%, 0.66%, 2.27%, and 2.32% (annualized) of the current period's operating income, with the accounts receivable balance accounting for a relatively low proportion of the current period's operating income.

On the other hand, with the rapid increase in the scale of operating income, the net cash flow from operating activities of Tianxing Medical is also continuously increasing. From 2020 to 2022 and the first three months of 2023, the net cash flow from operating activities of Tianxing Medical was -15.2745 million yuan, 8.0034 million yuan, 55.8116 million yuan, and -1.3031 million yuan, respectively.Additionally, at the end of each period from 2020 to 2022 and from January to March 2023, Tianxing Medical had neither short-term nor long-term loans. The company's current ratio was 2.59 times, 6.39 times, 5.56 times, and 6.37 times, respectively. The quick ratio was 1.75 times, 5.62 times, 5.08 times, and 5.83 times, respectively. The consolidated debt-to-asset ratio was 34.07%, 17.45%, 18.62%, and 16.08%, respectively.