After four months in the IPO queue, Jiangxi Hongban Technology Co., Ltd. (hereinafter referred to as "Hongban Tech") is approaching a critical milestone in its bid to list on the A-share market. According to the Shanghai Stock Exchange (SSE) website, the company's mainboard IPO will undergo review on October 31.

Behind its A-share ambitions, Hongban Tech’s controlling shareholder holds over 90% of the company’s equity, while the firm distributed a total of RMB 138 million in dividends for 2022 and 2023. Additionally, its R&D expense ratio has consistently lagged behind industry peers during the reporting period. The company addressed related inquiries in an interview on October 29.

**IPO Review Scheduled for October 31** The SSE Listing Review Committee will convene on October 31 for the 48th review meeting of 2025 to deliberate on Hongban Tech’s IPO application.

Hongban Tech specializes in the R&D, production, and sales of printed circuit boards (PCBs), with products primarily serving consumer electronics, automotive electronics, high-end displays, industrial controls, computers and peripherals, communication electronics, and integrated circuits. The company’s mainboard IPO was accepted on June 28 this year and entered the inquiry phase on July 18.

Founded in 2005, Hongban Tech’s technical team has focused on developing high-end precision PCB products since its inception. Initially a wholly-owned subsidiary indirectly held by Sentei Group (renamed GCL New Energy in 2014), the company’s 100% stake was transferred by GCL New Energy in August 2017.

For this IPO, Hongban Tech aims to raise approximately RMB 2.057 billion, with proceeds allocated to a 1.2-million-square-meter high-precision PCB production project after deducting issuance costs.

**R&D Spending Below Industry Average** Despite its IPO push, Hongban Tech’s R&D expense ratio has consistently trailed behind industry peers. From 2022 to the first half of 2025, its R&D expenses were approximately RMB 101 million, RMB 110 million, RMB 125 million, and RMB 62.438 million, respectively, with ratios of 4.56%, 4.69%, 4.63%, and 3.65%. In contrast, the industry average stood at 4.7%, 5.14%, 5.13%, and 4.88% for the same periods.

Hongban Tech attributed the gap to differences in development stages, financial constraints, and business focus. The decline in H1 2025 was due to revenue growth outpacing stable R&D spending, bringing its ratio closer to peers like Victory Giant Technology and Bomin Electronics, which reported ratios of 3.91% and 3.93%, respectively.

**Controlling Shareholder Holds 95.12% Voting Rights** Notably, founder Ye Senran controls 95.12% of voting rights through Hong Kong Hongban (95.12% pre-IPO stake) and Same Time BVI (100% owner). Post-IPO, Ye will retain absolute control.

Angel investor and AI expert Guo Tao noted that excessive control by a single shareholder could weaken oversight by minority investors and undermine corporate governance.

**Financial Performance and Dividends** Hongban Tech’s net profit has fluctuated in recent years. From 2022 to H1 2025, revenue reached RMB 2.205 billion, RMB 2.34 billion, RMB 2.702 billion, and RMB 1.71 billion, while net profits were RMB 141 million, RMB 105 million, RMB 214 million, and RMB 240 million, respectively.

The company paid dividends of RMB 60 million in 2022 and RMB 78 million in 2023, citing strong operational performance and sustainable cash flow. However, its debt-to-asset ratio remained high at 54.31%, 54.06%, 54.29%, and 54.62% at each reporting period’s end.

**Higher Capital Intensity** Hongban Tech’s fixed-asset investment per unit capacity (RMB 1,734.35/sq.m) significantly exceeded peers such as Kinwong Electronics (RMB 1,022.47–1,093.08/sq.m). The SSE questioned potential asset idling or impairment risks, to which the company clarified that its HDI board production requires costlier high-precision equipment than standard rigid boards. No fixed-asset write-offs or idling were reported.