Wuxi Xinju Hong Intelligent Technology Co., Ltd. (hereafter "Xinju Hong") responded to the Beijiao Stock Exchange's second round of inquiries on August 7th. In its historical development, in July 2018, Liu Ling and Sun Tiantian transferred a combined 40% equity stake to Wu Jie at zero consideration, nominally for "introducing a consultant" and "reserving equity incentives." However, until December 2021, the cleanup of this 25% equity trust was cursorily addressed with a statement that "the trust no longer exists." After an external investor entered at a high price of 52.85 yuan in October 2022, the company's valuation began a downward trajectory: old shareholders exited at a discount in April 2024, an employee shareholding platform conducted a half-price capital increase in September of the same year, and a share transfer in March 2025 further collapsed to 18.33 yuan. Meanwhile, actual controller Sun Liangliang controls 66.47% of voting rights through a multi-layered structure, with ex-wife Liu Ling holding 4.17% and resigning as a director just before the IPO, yet the company refuses to recognize her as a joint actual controller. Additionally, core technical staff member Feng Bingbing, who had been employed for less than a year, was sued by Polar Optoelectronics and Jiangxi Tianfu for trade secret infringement, with plaintiffs accusing Xinju Hong of "plundering FA product key customer orders."

During the reporting period (2022 to the first half of 2025), Xinju Hong's revenue surged from 151 million yuan to 465 million yuan (for the full year 2024), while net profit soared by 374.58% year-on-year to 87 million yuan. Beneath this impressive performance curve, customer concentration continuously rose to 83.92%, and the contribution from its former mainstay, Zhongji Innolight, dropped sharply from 52.47% to 30.31%. Accounts receivable ballooned from 51.58 million yuan to 281 million yuan, growing three times faster than revenue, while outsourced processing procurement reached 90.42 million yuan, accounting for 30% of operating costs. Notably, the largest supplier, Huaertai, has only two insured employees, and another major supplier, Suzhou Aviation Hong, has no paid-in capital.

A 40% Stake Acquired for Zero Yuan, Valuation Plunges from 52 to 18 Yuan

Xinju Hong's predecessor, Wuxi Xinju Hong Hardware Manufacturing Co., Ltd., was registered on January 7, 2013. Starting from hardware manufacturing, the company transitioned over a decade into the precision optical components sector for optical communications. In 2024, the company completed an equity financing round and restructured into a joint-stock company; on June 25 of the same year, its name changed from "Wuxi Xinju Hong Hardware Manufacturing Co., Ltd." to its current name. On December 30, 2025, Xinju Hong submitted its IPO application to the Beijiao Stock Exchange, which was accepted, with Guotai Haitong Securities as the sponsor and Tianzhi International Accounting Firm as the auditor.

In its historical development, in July 2018, Liu Ling and Sun Tiantian transferred a combined 40% equity stake (corresponding to a paid-in capital of 2 million yuan) to Wu Jie at zero consideration. The documentation explains this as "introducing consultant Liu Xiaoxiang" and "reserving equity incentives." Of the 40% equity Wu Jie received in 2018, it was explicitly stated that "25% of the equity incentives reserved were entrusted to Wu Jie for holding." However, in a capital increase in December 2021, it was mentioned that "Wu Jie's shareholding in the company changed from 40% to 15%, and the equity trust situation no longer exists."

In October 2022, an external investor (Wuxi Xinrun) made a capital increase at a price of 52.85 yuan per registered capital. In April 2024, just a year and a half later, the price for an old shareholder (Wuxi Jiaze) transferring shares to a new shareholder (Wuxi Xingchen) dropped to 50.67 yuan per registered capital, cited as "personal reasons for exit, offering a discount." In September 2024, employee shareholding platforms (Wuxi Yize, Wuxi Zhongze) conducted a capital increase at only 26.36 yuan per share, roughly half the previous external financing price. In March 2025, the share transfer price further fell to 18.33 yuan per share. Over just three years, the valuation fell from 52 yuan to 18 yuan, interspersed with low-price employee incentives.

Before the IPO, actual controller Sun Liangliang directly held 10.60% of the company's voting rights and controlled 41.75% through his wholly-owned Xinju Hong Venture Capital. Additionally, Xinju Hong Venture Capital, as the executive partner of Wuxi Zehui, Wuxi Zesheng, Wuxi Yize, Wuxi Zhongze, and Wuxi Jiaze, these five shareholding platforms collectively control 14.12% of the company's voting rights. Cumulatively, Sun Liangliang personally controls 66.47% of the company's voting rights. Apart from Sun Liangliang and his controlled platforms, Wu Jie holds about 11.57%, Liu Ling holds 4.17%, and institutional shareholders like Ningbo Houpu Mingde Venture Capital Fund have relatively smaller stakes. Wuxi Zehui and Wuxi Zesheng each hold about 4.17%. Sun Liangliang's ex-wife, Liu Ling, currently holds 4.17% of the company's shares, serves as an assistant in the general manager's office, and was a director from June 2024 to January 2025. With an ex-wife holding 4% and just recently resigning as a director on the eve of the IPO, the company has not recognized Liu Ling as a joint actual controller or a party acting in concert. The Beijiao Stock Exchange has requested the company to explain the rationale for not recognizing Liu Ling as a joint actual controller.

Two-Employee Firm Emerges as Top Supplier, High Reliance on Outsourced Processing

In compliance matters, the most prominent issue Xinju Hong faces is a trade secret infringement lawsuit. On July 25, 2025, the company and employees Feng Bingbing, Yuan, and Fan received litigation materials related to a trade secret infringement dispute from the Wuxi Intermediate People's Court of Jiangsu Province, with plaintiffs being Polar Optoelectronics and Jiangxi Tianfu. The plaintiffs accuse the company and the aforementioned employees, who are former employees of the plaintiffs, of misappropriating their technical secrets and plundering a large number of orders for FA product key customers. Feng Bingbing was recruited as a core technical staff member in April 2024. The Beijiao Stock Exchange has requested the company to explain the background of the business involved in the lawsuit, whether the technology constitutes core technology, and whether there are any situations that infringe on the legitimate rights of third parties.

Xinju Hong is primarily engaged in the R&D, production, and sales of precision optical components, with core products including optical module chip substrates, fiber lens arrays, high-density fiber optic connectors, fiber optic adapters, LiDAR windows, vehicle lens windows, and precision robot components. The company claims that in terms of optical module chip substrates, its domestic shipments and production capacity hold a leading position, with a high share of orders from core customers like Zhongji Innolight and Eoptolink. From a financial performance perspective, during the reporting period (2022 to the first half of 2025), Xinju Hong achieved revenues of 151 million yuan, 200 million yuan, 465 million yuan, and 303 million yuan, respectively, with net profits attributable to the parent of 19.78 million yuan, 18.33 million yuan, 87 million yuan, and 58.62 million yuan. In 2024, revenue grew by 132.34% year-on-year, and net profit increased by 374.58% year-on-year.

Regarding the customer structure, the company's sales revenue from Zhongji Innolight decreased from 52.47% in 2022 to 30.31% in the first half of 2025, showing a significant downward trend. The Beijiao Stock Exchange has already inquired about this, asking the company to explain the reasons for the year-on-year decline in sales to Zhongji Innolight in the first half of 2025. During the reporting period, the proportion of Xinju Hong's revenue from its top five customers was 78.12%, 80.14%, 82.30%, and 83.92%, respectively. Customer concentration is not only high but also on a continuous upward trend. Key customers include leading optical communication companies such as Zhongji Innolight, Eoptolink, Coherent, and Hisense Broadband.

During the reporting period, Xinju Hong's outsourced processing procurement amounts were 23.47 million yuan, 49.35 million yuan, 90.42 million yuan, and 63.10 million yuan, respectively, accounting for 23.79%, 35.66%, 30.21%, and 31.79% of operating costs. The outsourced processing ratio remains at a relatively high level of around 30%. In terms of the top five suppliers, the procurement ratios for each reporting period were 36.11%, 53.24%, 46.49%, and 49.23%. Notably, the largest supplier, Huaertai, has only two insured employees, while another major supplier, Suzhou Aviation Hong, has no information on paid-in capital, and both Suzhou Aviation Hong and Suzhou Xuanzhihe have only four insured employees each. The Beijiao Stock Exchange has explicitly requested the company to explain the rationale for cooperating with suppliers that have a small number of insured employees or low paid-in capital, as well as the alignment of procurement with the suppliers' business scale and operations.

At the end of each reporting period, Xinju Hong's accounts receivable balances were 51.58 million yuan, 120 million yuan, 229 million yuan, and 281 million yuan, respectively. From the end of 2022 to the end of 2024, the accounts receivable balance grew more than threefold, far exceeding the growth rate of revenue during the same period. In 2023, the growth in accounts receivable surpassed the revenue growth, and the Beijiao Stock Exchange has requested the company to explain the reasonableness of this and whether there was any adjustment of credit policies to stimulate sales. For this IPO, Xinju Hong plans to raise 691 million yuan, allocated to four projects: 350 million yuan for the precision optical components and vehicle-mounted optical products capacity expansion project, 187 million yuan for the precision optical components production base construction project, 94.27 million yuan for the R&D center construction project, and 60 million yuan for supplementary working capital.