After successfully listing Lateet Optoelectronics (688150) in 2021, Shaanxi entrepreneur Wang Yalong is now spearheading the IPO process for Chongqing Yulong Optoelectronic Technology Co., Ltd. (Yulong Tech) on the ChiNext board.
Yulong Tech's IPO application recently entered the inquiry phase. This marks the company's second attempt at going public after withdrawing its previous application for a Shanghai main board listing. A lingering concern remains Yulong Tech's heavy reliance on its top client, BOE, which accounts for over half of its revenue.
**Shifting to ChiNext** Following the withdrawal of its Shanghai main board IPO, Yulong Tech redirected its efforts toward the ChiNext board. The company specializes in smart control cards and precision functional components for LCD display panels, with expanding applications in OLED and Mini/Micro LED technologies.
According to Shenzhen Stock Exchange filings, Yulong Tech's IPO was accepted on December 5 and entered the inquiry stage on December 19. In its previous attempt, the Shanghai Stock Exchange accepted its application on March 4, 2023, but the company withdrew it on June 30 the same year.
If successful, this would be Wang Yalong's second A-share listing. He currently controls 74.16% of Yulong Tech alongside his wife, Li Hongyan, and is also the majority shareholder of Lateet Optoelectronics.
**Financial Performance and Fundraising** From 2022 to the first half of 2025, Yulong Tech reported gross margins of 21.35%, 23.01%, 21.49%, and 22.56%, respectively—a decline from the 38.36%, 39.68%, and 31.2% recorded between 2019 and 2021.
The company aims to raise approximately 1 billion yuan ($140 million) this time, down from its previous 1.5 billion yuan target. The funds will be allocated to production base projects in Hefei and Chongqing, as well as working capital.
**BOE Dominance and Customer Concentration Risks** Like its sister company Lateet Optoelectronics, Yulong Tech relies heavily on BOE, which contributed 77.04%, 79.1%, 53.61%, and 53.58% of its revenue from 2022 to mid-2025. Lateet Optoelectronics also reported 75.56% of its 2024 revenue from BOE.
Yulong Tech attributes this concentration to the highly consolidated semiconductor display panel industry. While emphasizing BOE's stability as a leading A-share listed company, the firm has expanded its clientele to include Tianma, Huaxing Optoelectronics, and others.
Industry experts warn that over-reliance on a single client poses risks, urging diversification to enhance resilience.
**Growing Receivables and R&D Spending** Despite steady profit growth—668 million yuan in 2022, 757 million yuan in 2023, 1.21 billion yuan in 2024, and 703 million yuan in H1 2025—Yulong Tech faces rising accounts receivable, which now constitutes nearly half of its current assets.
Additionally, its R&D expenditure lags behind industry peers, dropping to 2.95% of revenue in H1 2025 compared to the sector average of 6.09%. The company defends this by citing higher revenue growth relative to R&D costs and alignment with peers like Yabaoxuan and Hongguang Technology.
No response was received from Yulong Tech regarding further inquiries.
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