Dongguan Siwei Materials Technology Co., Ltd. (hereinafter "Siwei Materials") responded to the Beijing Stock Exchange's first-round inquiry on September 3. In its corporate history, the company completed two capital increases within just 20 days in March 2021, with the price per share jumping from 1 yuan to 4 yuan—a fourfold surge in valuation—and the low-priced subscriber happened to include "Weitai Partnership," a suspected employee stock ownership platform. Meanwhile, the four actual controllers collectively command over 83% of voting rights, with Chairman He Tonghai's aerospace engineering background and Hu Bin's education system experience forming an unusual "cross-industry pairing." Regarding performance commitment clauses, both financing rounds in 2021 and 2023 included performance guarantees, which the company claims have been "fulfilled."
On the business and financial front, as an aluminum processing trader where raw material costs account for over 95% of total costs, Siwei Materials essentially earns only an extremely thin processing margin above aluminum ingot prices. During the reporting period, gross margins hovered at just 6% to 7%, trailing industry peers by more than 12 percentage points. Meanwhile, futures investment losses exceeding 10 million yuan in 2025 directly eroded the already meager profits, causing net profit to decline 10% year-on-year despite record-high revenue.
Valuation Quadruples in 20 Days, Performance Targets Met with Suspicious Precision
The predecessor of Dongguan Siwei Materials Technology Co., Ltd. traces back to Dongguan Siwei Metal Materials Co., Ltd., established on August 20, 2009. At that time, He Tonghai, Hu Bin, Liao Weijian, and Xie Xingwen collectively founded the company with a monetary contribution of 1.5 million yuan, with He Tonghai subscribing 525,000 yuan (35% stake), Hu Bin 375,000 yuan (25%), and Liao Weijian and Xie Xingwen each 300,000 yuan (20% each).
In the corporate evolution, the registered capital increased from 1.5 million yuan to 5 million yuan in April 2013, with the four founding shareholders increasing capital proportionally at 1 yuan per share. In July 2023, Siwei Limited was converted into a joint-stock company. In April 2025, the company was listed on the National Equities Exchange and Quotations system, followed by an employee stock ownership plan implemented through a private placement. As of the filing date, the registered capital had reached 65.0255 million yuan.
Notably, in March 2021, the company executed two密集 capital increases. The fifth increase (March 3) was priced at 1 yuan per share, but just 20 days later, the sixth increase (March 22) saw the price surge to 4.00 yuan per share—a fourfold valuation jump in merely 20 days. The fifth increase allowed existing shareholders and "Weitai Partnership" (suspected employee stock platform) to subscribe at extremely low prices. In March 2023, Hong Kong resident Su Yong'an subscribed through a capital increase, converting the company into a foreign-invested enterprise. The filing documents explain that approval was unnecessary under the 2020 Foreign Investment Law.
Prior to the filing, He Tonghai, Hu Bin, Liao Weijian, and Xie Xingwen, as joint actual controllers, directly and indirectly controlled 83.3242% of voting rights. Among them, the controlling shareholder Guangdong Shiwei Investment Co., Ltd. holds approximately 55.80%, with He Tonghai personally holding about 5.55%. Additionally, Guangdong Dongling Kaiqin Group Co., Ltd. holds 6.44%, and Guangdong Jianqi Hongye Investment Development Co., Ltd. holds 6.4%.
Chairman He Tonghai, born in 1969 with a bachelor's degree, served as a technician and engineer at the 507 Branch of the 3655 Factory under the Aerospace Industry Base 061 from 1992 to 1995. He subsequently moved through various enterprises including Hongdian Industrial Equipment, Zunyi Tonghai Trading, Shanghai Kaiquan Pump Kunming Branch, and Shenzhen Jinfu Copper & Aluminum, before founding Siwei Limited in 2009 where he has served as executive director ever since. General Manager and Board Secretary Hu Bin entered a school's workforce at age 19 and later served as deputy director of the admissions and employment office. Liao Weijian and Xie Xingwen respectively serve as director and deputy general manager.
Siwei Materials' IPO journey has been far from smooth. On May 22, 2026, the company submitted its prospectus to the Beijing Stock Exchange, planning to raise approximately 326 million yuan. Just one month later on June 22, the BSE issued a first-round review inquiry letter, raising verification questions across nine major areas including business model and innovation capability, sales internal control effectiveness and terminal sales authenticity, revenue recognition compliance, purchase and sale pricing models and gross margin stability, futures investment and post-period performance stability, and necessity of fundraising projects and capacity digestion risks. The company subsequently requested an extension for its response and submitted the inquiry reply in August.
Worth highlighting is that Siwei Materials' historical financing involved performance commitment clauses. According to disclosures, the company signed agreements with shareholders including Dongling Group and Jianqi Investment containing special investment terms such as performance commitments, repurchase rights, and preemptive subscription rights. When introducing Dongling Group and Zhixiang Partnership in 2021, the company committed to 2021 revenue of no less than 1.25 billion yuan. In 2023, when introducing Jianqi Investment and Su Yong'an, it committed to 2023 net profit after deducting non-recurring items of no less than 50 million yuan. The filings state that "performance commitments have been fulfilled."
R&D Expense Ratio at 0.23% with a Rush of Patents Acquired via Transfer
Siwei Materials' main business involves the processing and sales of customized industrial materials, with core products being customized aluminum parts (including aluminum plates, aluminum bars, and aluminum profiles). The business model essentially amounts to "earning the spread"—procurement is priced at "aluminum ingot price + processing fee" while sales are priced at "aluminum ingot price + service fee." The company describes itself as providing "one-stop services including custom processing, spot warehousing, logistics distribution, and material selection consulting."
Raw material costs account for over 95% of main business costs, meaning the company's value-added space is extremely limited. During the reporting period, main business gross margins were 6.43%, 6.76%, and 7.06%, all below the average of comparable listed companies in the industry. In 2025, Weilant Lithium Core's gross margin exceeded Siwei Materials' by 12.79 percentage points.
From 2023 to 2025, Siwei Materials' revenue grew steadily from 1.699 billion yuan to 2.234 billion yuan. However, net profits were 52.7302 million yuan, 67.0578 million yuan, and 60.4702 million yuan respectively—in 2025, despite record revenue, net profit actually declined approximately 10% year-on-year. The company attributes this to futures investment losses. During the reporting period, investment income was 1.2045 million yuan, -642,900 yuan, and -10.0416 million yuan respectively. The negative investment income in 2024 and 2025 resulted from liquidation losses on aluminum futures contract rollovers.
Regarding customers, the company's top five customers in 2025 included Dongguan Changtai Metal Trading Co., Ltd. and its affiliates, Dongguan Qide Metal Materials Co., Ltd. and its affiliates, and Dongguan Xingtu Special Metals Co., Ltd. Four of the five customers are from Dongguan, with one from Foshan. Over 90% of main business revenue comes from the South China region, ranging from 88.05% to 89.96% and then 90.37%.
On the supplier side, purchases from the top five suppliers exceeded 88% for three consecutive years, with purchases from the largest supplier Mingtai Aluminum and its affiliates reaching 62.88%, 63.74%, and 53.99% respectively. Notably, in 2025, logistics service fees paid to individual drivers reached 12.6825 million yuan, accounting for 87.37%. During the reporting period, the company also had third-party payment collections, with amounts collected and paid on behalf by employees and external drivers totaling 5.1094 million yuan. The BSE has explicitly required the company to explain whether financial internal control irregularities exist, including personal bank card transactions and missing key documents.
On accounts receivable, the balance increased from 213.6642 million yuan to 268.1132 million yuan across the reporting period. In the first half of 2026, accounts receivable surged from 320 million yuan to 449 million yuan, an increase of 40.63%, significantly higher than the 36.69% revenue growth rate during the same period. Receivables growth has consistently outpaced revenue growth, while credit impairment losses expanded from 1.04 million yuan to 6.6 million yuan.
During the reporting period, R&D investment as a percentage of revenue was merely 0.22%, 0.21%, and 0.23% respectively—a figure not only far below the average of BSE-listed companies but also well under the 3% threshold required for high-tech enterprise certification. Although the company claims to hold 56 software copyrights and 9 invention patents, most were obtained during or after the reporting period, with 3 acquired through transfer. This pattern of "rushed applications plus purchased transfers" for intellectual property hardly inspires confidence in the company's genuine technological innovation capability. The BSE has directly questioned in its inquiry letter whether there exist "circumstances of purchasing or rush-applying for invention patents and software copyrights."