Aotuo Technology: Low R&D costs and high gross profits coexist; 160 million yuan of liquidity replenishment projects were eliminated before the meeting | IPO Observation
Aotuo Technology will submit its IPO application to the Science and Technology Innovation Board, with an public offering of no more than 37.7584 million shares. The company’s gross margin has long led the industry significantly, with an average of over 72% over three years. However, its R&D investment is not strong; in most years, the R&D expense ratio was below the industry average, showing a “low R&D, high gross margin” business characteristic. The company’s profitability has continued to decline, with operating cash flow decreasing year by year, and the match between net profit and cash receipts has steadily decreased. The changes in the fundraising plan before and after sparked controversy. The company had sufficient funds on its balance sheet, low debt levels, and continuous dividend payments. However, when initially submitting the application, it planned to raise 160 million yuan to supplement working capital. In response to regulatory inquiries, the company urgently eliminated the capital replenishment project and reduced the total amount of funds raised before the submission, reducing the fundraising plan from 779.3734 million yuan to 524.9625 million yuan. These inconsistent adjustments in fundraising plans have raised doubts in the market. Aotuo Technology’s ability to voluntarily eliminate the capital replenishment project and reduce the scale of fundraising before the submission clearly indicates that it does not have an urgent need for working capital or financing. This, in turn, highlights the serious lack of rationality in including a 160 million yuan capital replenishment project in the initial application. The company’s previous fundraising plan…