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Vanfund Technology's IPO on Shenzhen Stock Exchange "terminated (withdrawn)" Focus on IoT communication and control products

AInvestSunday, Nov 3, 2024 1:20 am ET
1min read

On November 2, Chengdu Wanchuang Technology Co., Ltd. (hereinafter referred to as "Wanchuang Technology") changed its IPO review status on the Shenzhen Stock Exchange to "Terminated (Withdrawn)". Due to the withdrawal of the IPO application by Chengdu Wanchuang Technology Co., Ltd. and the sponsor, according to Article 62 of the "Shenzhen Stock Exchange Stock Issuance and Listing Review Rules", the Shenzhen Stock Exchange decided to terminate its IPO review.The prospectus revealed that Wanchuang Technology is a high-tech enterprise that provides customers with IoT communication and control products. Its products include IoT gateways, mobile communication terminals, and IoT control devices. As of December 31, 2022, the Company has been granted 107 patents and 61 software copyrights.At present, the Company's customers cover world-renowned enterprises and listed companies such as Arrow, Qolsys, Nautilus, Wayne, MSA, Bosch, Hydrow, Honeywell, etc. The Company's related products have been widely applied in industries such as smart manufacturing (industrial internet), intelligent buildings, smart sports equipment, and smart prisons.During the reporting period, the Company's main business revenue composition was as follows:Financially, the Company achieved operating revenues of approximately RMB262 million, RMB407 million, and RMB435 million in 2020, 2021, and 2022, respectively; and its net profit attributable to parent was RMB28.68 million, RMB45.18 million, and RMB79.95 million, respectively.Wanchuang Technology warned in its prospectus that the risk of net cash provided by operating activities being lower than net profit. During the reporting period, the Company's net cash provided by operating activities was RMB27.26 million, -79.32 million, and RMB129 million, respectively, with negative or lower than net profit. The significant increase in accounts receivable and inventory was the main reason for the Company's net cash provided by operating activities being lower than net profit. With the Company's business scale continuously expanding, its funding needs in production and operation, research and development, etc. are large. If the Company cannot reasonably arrange the use of funds, it may have a certain impact on its liquidity and operating stability.

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