Redboard Technology Faces Regulatory Inquiry Over IPO

Redboard Technology, a company specializing in the research, development, production, and sales of printed circuit boards, has received regulatory inquiries regarding its initial public offering (IPO) on the Shanghai Stock Exchange. The company's controlling shareholder, Ye Senran, indirectly holds over 95% of the shares through a complex ownership structure. Hong Kong Redboard, which owns 95.12% of the company's shares, is fully owned by Same Time BVI, which is in turn fully owned by Ye Senran. This high concentration of ownership raises questions about the distribution of control and potential risks associated with such a structure.

The regulatory inquiry is likely aimed at assessing the fairness and transparency of the IPO process, as well as the potential impact on minority shareholders. The outcome of this inquiry will be crucial in determining the company's ability to proceed with its listing plans. Redboard Technology's products are positioned in the mid-to-high-end market and include HDI boards, rigid boards, flexible boards, rigid-flex boards, substrate-like boards, and IC substrate boards. These products are used in various industries such as consumer electronics, automotive electronics, high-end displays, and communication electronics.

Redboard Technology has a diversified product structure, offering a range of products and one-stop services to its customers. The company's financial performance has been strong, with revenue and net profit increasing over the past three years. In 2022, 2023, and 2024, the company's revenue was approximately 22.05 billion yuan, 23.4 billion yuan, and 27.02 billion yuan, respectively. During the same period, the company's net profit was approximately 1.41 billion yuan, 1.05 billion yuan, and 2.14 billion yuan, respectively.

The funds raised from the IPO will be used to invest in various projects, including the expansion of production capacity, research and development, and the acquisition of new technologies. The company's strong financial performance and diversified product offerings make it a promising candidate for listing on the Shanghai Stock Exchange. However, the high concentration of ownership and the regulatory inquiry pose potential challenges that the company will need to address in order to proceed with its listing plans.