On November 28, 2025, the Shenzhen Stock Exchange announced that Xinqiang Electronics (Qingyuan) Co., Ltd. (hereinafter referred to as "Xinqiang Electronics") had voluntarily withdrawn its IPO application from the exchange. The IPO had planned to raise 961.68 million yuan, with the original sponsor being Guolian Minsheng Securities Underwriting and Sponsorship Co., Ltd.

On June 30, 2025, Xinqiang Electronics applied for an IPO on the ChiNext board of the Shenzhen Stock Exchange. On July 17 of the same year, the exchange issued its first round of inquiries to the company. However, Xinqiang Electronics did not respond accordingly. On November 28, the company voluntarily withdrew its IPO application for the review meeting.

The reasons for the termination of Xinqiang Electronics' IPO may include the following: First, the company's capacity utilization rates from 2022 to 2024 were 84.87%, 93.15%, and 85.07%, respectively, yet it planned to raise 961 million yuan for capacity expansion, raising doubts about the absorption of the new capacity. Second, cash dividends of 90 million yuan and 90.5565 million yuan were distributed in 2022 and 2023, respectively, with the actual controllers directly and indirectly holding 95.04% of the company's shares, meaning approximately 172 million yuan flowed to the actual controllers' family. Additionally, on the eve of the IPO, the company introduced an equity incentive plan valued at 420 million yuan, raising concerns about potential利益输送 (benefit transfer). Finally, from 2022 to 2024, Xinqiang Electronics' R&D expenses were 33.9066 million yuan, 34.7062 million yuan, and 37.7587 million yuan, with R&D expense ratios of 3.90%, 3.47%, and 3.78%, respectively, which were lower than the average of comparable companies in the same industry. As a company seeking to list on the科创板 (Science and Technology Innovation Board), R&D is a critical indicator.

According to the pre-review meeting documents, Xinqiang Electronics is primarily engaged in the R&D, production, and sales of printed circuit boards (PCBs). Its main products include rigid boards, HDI boards, flexible boards, and rigid-flex boards, which are widely used in storage, communications, consumer electronics, and other fields. According to the "2024 Revenue Ranking of Major Companies in China's Electronic Circuit Industry" released by CPCA, the company ranked 71st among the top 100 comprehensive PCB companies.

In terms of equity structure, Xinqiang Electronics is a典型的家族式控股企业 (typical family-controlled enterprise). The company's actual controllers are Yu Xiaozhang, Yu Wanling, and Yu Jinlu, who collectively hold 95.04% of the company's shares directly and indirectly. Among them, Yu Jinlu is the father of Yu Xiaozhang and Yu Wanling, and Yu Wanling is the sister of Yu Xiaozhang. All three are from Taiwan, China.

From 2022 to 2024, Xinqiang Electronics' capacity utilization rates were 84.87%, 93.15%, and 85.07%, respectively, indicating that its capacity was not fully utilized. Additionally, the company's revenue was 869 million yuan, 1 billion yuan, and 999 million yuan during these years, with year-on-year growth rates of 15.13% and -0.13%. Its net profit attributable to shareholders was 84.9839 million yuan, 132 million yuan, and 168 million yuan, with year-on-year growth rates of 55.26% and 27.45%, showing a noticeable slowdown in业绩增速 (performance growth). Despite this, Xinqiang Electronics planned to raise 961 million yuan to expand capacity, raising questions about whether the additional capacity could be absorbed and whether the move was reasonable.

During the reporting period, Xinqiang Electronics distributed dividends multiple times, totaling approximately 180 million yuan. It is reported that the net profit attributable to shareholders in 2022 and 2023 was 84.98 million yuan and 131.9464 million yuan, respectively, while cash dividends of 90 million yuan and 90.5565 million yuan were distributed in these two years. The reasonableness of such dividends and whether the company adequately considered its specific operating conditions have been questioned. Furthermore, such a股权结构 (equity structure) with dominant control may lead to a lack of checks and balances in corporate governance after listing.

Before submitting its pre-review meeting application, Xinqiang Electronics transferred 4.37% of its shares to its newly appointed general manager, Chen Defu, for 56.14 million yuan to attract talent. Based on the IPO valuation, these shares were worth 420 million yuan. This股权激励 (equity incentive) method directly made Chen Defu the second-largest shareholder. Notably, Chen Defu did not sign a long-term service agreement with Xinqiang Electronics. If he were to leave after the IPO, the company's control could face potential risks. Additionally, from a timeline perspective, Chen Defu was appointed as the new general manager in May 2025, and the pre-review meeting application was submitted on June 30. This突击空降 (sudden appointment) and the unreasonable share transfer appear somewhat abrupt.

Furthermore, as a company seeking to list on the科创板 (Science and Technology Innovation Board), R&D capability is crucial. During the reporting period, Xinqiang Electronics' R&D expenses were 33.9066 million yuan, 34.7062 million yuan, and 37.7587 million yuan, with R&D expense ratios of 3.9%, 3.47%, and 3.78%, respectively. The company's R&D expense ratio has consistently remained below 4%, and its current ratio is slightly lower than the average of comparable companies in the same industry, which were 5.22%, 6.01%, and 5.58%.

Finally, in terms of the number of patents, Xinqiang Electronics lags significantly behind its peers. As of the end of 2024, the company and its subsidiaries owned 36 patents, including 13 invention patents. In comparison, Shennan Circuits and沪电股份 (Wuzhou Technology) held 685 and 231 invention patents, respectively, during the same period. In the highly competitive PCB industry, continuous R&D investment is key to maintaining technological leadership and enhancing product competitiveness.