Zhuhai JieLi Technology Co., Ltd. (hereinafter referred to as "JieLi Technology") will undergo a listing review by the Beijing Stock Exchange's listing committee on March 20.

For this IPO, the company plans to raise 681 million yuan. The lead underwriter is Guotai Haitong Securities Co., Ltd., the legal counsel is Beijing Guofeng Law Firm, and the accounting firm is Rongcheng Certified Public Accountants (Special General Partnership).

An IPO "Veteran" In fact, JieLi Technology has been in the IPO process or preparing for an IPO since 2017. Due to the length of time, details about JieLi Technology's several IPO attempts vary.

It is confirmed that the earliest pre-disclosure of JieLi Technology's IPO application by the China Securities Regulatory Commission (CSRC) appeared in March 2017. The company conducted an updated pre-disclosure in September of that year, with China Securities Co., Ltd. as the lead underwriter at the time, but the process halted after the first round of feedback.

The second documented application was in 2018. A 2021 CSRC decision revealed that the company submitted its initial public offering application on October 29, 2018, and withdrew the application on September 2, 2019. This IPO attempt not only failed but also resulted in the company receiving a warning letter.

The CSRC investigation found that during the application process for its initial public offering and listing, the company engaged in illegal and non-compliant activities. Specifically, from 2015 to 2016, the company used personal bank accounts for revenue and expenditure of goods payments. In 2015, it collected 70.84 million yuan in sales revenue and paid 69.99 million yuan for procurement outside the company's official accounts. In 2016, it collected 13.30 million yuan in sales revenue and paid 11.26 million yuan for procurement externally. Furthermore, from 2014 to 2018, this personal bank account transferred 3.7327 million yuan to the company's controlling shareholders, actual controllers, and related parties.

However, the financial statements and prospectus submitted by the company did not accurately reflect or disclose this information. Consequently, the CSRC took administrative supervisory measures by issuing a warning letter.

In September 2021, JieLi Technology once again launched an attempt to list on the Shenzhen Stock Exchange's ChiNext board. Yet, a familiar scenario played out again. After four draft applications, three rounds of inquiries and responses, the company applied to withdraw its issuance and listing application documents one year later.

Shrinking Fundraising Target It is important to note that while JieLi Technology has persistently pursued an IPO for nine years, the targeted fundraising amount has gradually decreased. According to the initial draft application for the current Beijing Stock Exchange IPO, JieLi Technology initially planned to raise 1.08 billion yuan, primarily for four projects including upgrades and industrialization of intelligent wireless audio technology and smart wearable chips, and the construction of an R&D center. In the latest review draft, the company revised the fundraising target down to 681 million yuan.

Back in 2021, when targeting a ChiNext listing, the company's fundraising goal was as high as 2.5 billion yuan, of which 1.1 billion yuan was intended to supplement working capital. Comparatively, the latest fundraising target represents a 72.76% reduction from the 2021 plan.

Based on information disclosed by the company, following the failure of the previous IPO attempt, the company did not undertake any other large-scale financing, and this did not affect its normal operations. Notably, the company had no long-term or short-term borrowings over the past three years, suggesting it is not short of funds.

In terms of cash flow, as of June 30, 2025, JieLi Technology held cash and cash equivalents of 772 million yuan, with total current assets amounting to 3.234 billion yuan, against current liabilities of only 286 million yuan. During the same period, the company held three-year large-denomination certificates of deposit and time deposits totaling 1.521 billion yuan, generating interest income of 81.1219 million yuan.

Another indicator of the company's strong cash position is its frequent dividend payments. Specifically, it distributed approximately 200 million yuan in dividends in 2023, and again paid 99.9888 million yuan in dividends in September 2024 (shortly before applying to the Beijing Stock Exchange). During the reporting period, the total dividends distributed amounted to 399.5918 million yuan, nearly 400 million yuan in cash.

Declining Performance JieLi Technology is an integrated circuit design enterprise focused on System-on-Chip (SoC) products, primarily targeting areas such as Bluetooth audio and video, smart wearables, and smart IoT terminals.

During the reporting period spanning 2022 to 2024 and the first half of 2025, the company achieved operating revenues of 2.2667278 billion yuan, 2.9305544 billion yuan, 3.1201029 billion yuan, and 1.3729646 billion yuan, respectively. Net profits were 335.9745 million yuan, 622.9757 million yuan, 791.3676 million yuan, and 293.0615 million yuan, respectively. The performance in the most recent period showed a decline compared to the same period in previous years.

Year-on-year changes in operating revenue during the reporting period were 29.29%, 6.47%, and -4.58%, respectively. Year-on-year changes in net profit were 85.42%, 27.03%, and -22.89%, respectively.

JieLi Technology attributed the performance decline to factors including a transitional phase for some of its Bluetooth headset chip product series, changes in the细分 market size and the company's market share, shifts in domestic and international economic and trade environments, and intensified market competition leading to a temporary drop in sales volume. Additionally, changes in supply and demand dynamics in the upstream and downstream sectors led to rising procurement costs and falling sales prices due to competition in the consumer electronics market, impacting operating performance.

The gross profit margin for the company's main business revenue during the reporting period was 28.35%, 33.10%, 35.77%, and 30.32%, respectively, showing fluctuations. JieLi Technology stated that due to decreases in product selling prices and increases in raw material procurement costs, the gross profit margin of its main business decreased by 5.45 percentage points compared to the full year 2024.

It is noteworthy that from the first half of 2021 to the first half of 2024, the company's R&D expenses were 188.0541 million yuan, 205.6873 million yuan, 275.5993 million yuan, and 150.1373 million yuan, accounting for 7.64%, 9.07%, 9.40%, and 10.43% of the operating revenue for the respective periods. These figures are significantly lower than the industry average of 17.45%, 26.57%, 27.60%, and 26.97% listed in the company's prospectus for comparable peers.

According to responses to inquiry letters, in the first half of 2025, the company incurred R&D expenses of 115 million yuan, a decrease of 23.41% compared to 150 million yuan in the same period last year. The R&D expense ratio was 8.38%, also significantly lower than the 10.43% recorded in the same period last year. During the same period, the R&D expense ratios of peer companies BES, Actions Semiconductor, and Telink Semiconductor were 20.37%, 27.58%, and 23.14%, respectively, all significantly higher than JieLi Technology's.

Research from Soochow Securities indicates that currently, JieLi Technology and Zhongke Bluewhale primarily focus on the mid-to-low end market, with product unit prices still below 2 yuan. In contrast, peer companies including BES, Actions Semiconductor, and Sensemi mainly target the mid-to-high end segment, with high-end smart chip prices from Sensemi and BES exceeding 10 yuan.

Furthermore, the company's sales exhibit distinct regional characteristics, with its primary base in the Shenzhen area. Revenue from main business operations in Shenzhen was 2.1964308 billion yuan, 2.8021221 billion yuan, 2.8914362 billion yuan, and 1.2713205 billion yuan during the reporting period, accounting for over 90% of the main business revenue for each period.

On the procurement side, the company's suppliers are also highly concentrated. The total procurement amount from the top five suppliers during the reporting period was 1.3705097 billion yuan, 1.8169476 billion yuan, 2.1126301 billion yuan, and 896.5234 million yuan, accounting for 89.54%, 92.61%, 91.29%, and 88.03% of the total procurement for the respective periods. Major suppliers include Huahong Group, Huatian Technology, Meifutech, Unigroup Guoxin, and Puya Semiconductor, which are well-known manufacturers in wafer fabrication, wafer testing, chip packaging and testing, and supporting packaging chips.

For this listing attempt, JieLi Technology plans to raise approximately 681 million yuan. After deducting issuance expenses, the funds are intended to be invested in projects including the upgrade and industrialization of intelligent wireless audio technology, the upgrade and industrialization of smart wearable chips, and the research, development, and industrialization of AIoT edge computing chips.

As of June 30, 2025, Zhuhai Gaoqi directly holds 63.01% of the company's shares, making it the controlling shareholder of JieLi Technology. The actual controllers are Wang Yihui, Zhang Qiming, Zhang Jinhua, and Hu Xiangjun. These four individuals collectively directly hold and control 17.54% of the company's shares and voting rights. Through Zhuhai Gaoqi, they indirectly hold 43.73% of the company's shares and control 63.01% of the voting rights. In total, they directly and indirectly control 80.55% of the company's voting rights.