New Energy Technology Co., Ltd. (referred to as "New Energy"), a company specializing in air-source heat pump equipment, has made progress in its A-share IPO journey by updating its first-round review inquiry response on the Shenzhen Stock Exchange after nearly three months in the questioning stage.
The company, established in October 2010, is now targeting the capital market with plans to raise about 750 million yuan. The funds will be directed toward the "zero-carbon" industrial park, heat pump component production base, and brand building projects. Financially, New Energy demonstrates robust performance, with revenue growing from approximately 1.299 billion yuan in 2023 to 1.512 billion yuan in 2025, and net profit rising from 103 million yuan to 219 million yuan over the same period.
A key concern highlighted in the review is the company's high reliance on distributor sales, which accounted for over 70% of revenue in 2025. The Shenzhen Stock Exchange has asked whether the company faces risks of significant performance fluctuations. New Energy responded that the industry is supported by domestic policies, and its post-report period performance remains strong, with unaudited revenue of 579 million yuan in the first five months of 2026, up 34.46% year-on-year, and net profit of 58 million yuan, up 49.4%.
Distributor revenue has been steadily increasing, from 796 million yuan (61.93% of total) in 2023 to 1.069 billion yuan (71.55%) in 2025. The company argues that a direct sales model cannot cover the fragmented terminal market, making distributor models necessary. Customer concentration is low, with the top five clients accounting for only 7.35% of revenue in 2025, a common industry trait that reduces the impact of losing any single client but may weaken bargaining power.
A notable issue involves the company's new board secretary, Li Qingli, who joined in August 2025 with a background in investment banking. Li, who previously worked at China Securities Co., Ltd. and China Galaxy Securities Co., Ltd., invested in New Energy at 5 yuan per share in September 2025. Just one month later, external investors like Sunshine Carbon Neutral Fund purchased shares at 20.49 yuan per share, making Li's entry price roughly one-fourth of the external investors' price. Critics suggest this could be seen as a form of benefit transfer rather than a reasonable equity incentive. New Energy defends the pricing, stating that Li's investment was based on the fair value of shares recognized for accounting purposes, while external investors negotiated market-based prices. The company's controlling shareholder, Zhao Misheng, holds 62.99% of shares directly, with total voting rights of 74.08%.
As of the report's publication, New Energy had not responded to requests for comment on these matters.