Dugen Core Optoelectronics Technology (Suzhou) Co., Ltd. (hereinafter referred to as "Dugen Core") responded to the Shenzhen Stock Exchange's first-round inquiry on August 24. At the corporate governance level, founder and actual controller Zhao Weidong's public resume shows a nearly nine-year gap between August 2005 and May 2014. Additionally, Zhao Weidong and his concert parties collectively control only 22.24% of shares, a figure projected to drop sharply to 16.68% after listing based on the upper issuance limit. Meanwhile, he has taken on approximately 75 million yuan in external debt to support the company's equity incentive plans and acquire shareholder stakes.
Founding shareholder Liu Wei, who holds no position within the company, cashed out a cumulative 137 million yuan through multiple share transfers within the twelve months preceding the IPO filing. In another development, Wang Jianhua, one of the actual controllers of listed company Yibin Technology (001278), acquired shares on a rush basis just before the filing, yet the transaction was labeled a "passively formed related-party transaction" to bypass board and shareholder meeting approval procedures.
On the financial front, the company recorded cumulative losses of approximately 523 million yuan during the reporting period, with net operating cash flows consistently negative, totaling 410 million yuan in outflows. While the comprehensive gross margin climbed from 7.45% to 19.72%, it still falls short of half the industry average of 42.81% among comparable companies. Accounts receivable surged from 154 million yuan to 274 million yuan, representing as much as 52.90% of projected 2025 revenue. Notably, a 36.08 million yuan receivable from customer Zhejiang Thermal Excitation Laser has been fully provisioned as bad debt and is now subject to litigation. Despite this persistent financial strain, the company has proposed a massive 2.8 billion yuan fundraising plan, including 600 million yuan earmarked for working capital replenishment.
Nine-Year Resume Gap, Founder Burdened by Millions in Debt, Early Investor Exits with 137 Million
Founded in May 2017, Dugen Core was established with 40 million yuan in registered capital contributed equally by three parties: Zhao Weidong, Liu Yaqin (Zhao's spouse), and Liu Wei. Founder Zhao Weidong, now 60 years old, holds a PhD from Nankai University. His career began as a lecturer at Shandong Finance College from July 1991 to November 1993, followed by stints at Shandong Lvye Group, Shandong Securities, and Tiantong Securities. From March 2003 to August 2005, he served as chairman and director of Daoqin Holdings Co., Ltd. However, between August 2005 and May 2014—a span of nearly nine years—Zhao's professional history remains conspicuously blank in public records. It was not until May 2014 that he reappeared as director and general manager of Pujiang Biotechnology (Suzhou) Co., Ltd.
As of the prospectus signing date, Zhao Weidong controls 20.47% of voting rights through platforms including Dugen Venture Capital, Suzhou Dugen, and Shanghai Dugen, with his spouse Liu Yaqin directly holding an additional 1.77%. Together, Zhao and his concert parties control 22.24% of shares. Based on the upper issuance limit, this control ratio would fall to 16.68% post-listing. Under such a highly dispersed ownership structure, the company faces an ongoing risk of a third-party takeover of control.
More concerning is the actual controller's personal financial situation. The prospectus discloses that Zhao Weidong and related parties have borrowed approximately 75 million yuan in principal to fund the company's equity incentives and acquire shareholder stakes. In the equity reshuffling preceding the IPO, founding shareholder Liu Wei—one of the three original founders alongside Zhao Weidong and Liu Yaqin—holds no operational role in the company. Yet within the twelve months before filing, Liu Wei accumulated approximately 137 million yuan in cash proceeds through multiple share transfers.
Among Dugen Core's shareholders, the Industrial Mother Machine Industry Investment Fund holds 10.50%, the National Development Bank Manufacturing Transformation and Upgrading Fund holds 7.95%, and several funds under CICC Capital collectively hold approximately 4.4%. Other notable institutional investors include Aerospace Science and Industry's Aerospace Jingkai Fund, Shenzhen High-Tech Investment, and Haitong Securities. Listed company Yibin Technology (001278) holds a cumulative 9.564815 million shares in Dugen Core, representing a 2.4502% stake.
Of particular note, Wang Jianhua, one of Yibin Technology's actual controllers, acquired 953,834 shares of Dugen Core in December 2025. Given Wang's affiliation with Yibin Technology, the investment has been classified as a related-party transaction by the listed company. In its announcement, Yibin Technology characterized the deal as a "passively formed related-party transaction" that does not require submission to the board of directors or shareholders' meeting for approval.
Three-Year Cumulative Loss of 523 Million, Gross Margin Below Half of Peers, Single Customer Bad Debt of 36 Million
During the reporting period (2023–2025), Dugen Core generated revenues of 274 million yuan, 385 million yuan, and 518 million yuan respectively, achieving a compound annual growth rate of 37.55%. However, net profits attributable to the parent company were -142 million yuan, -201 million yuan, and -179 million yuan for the respective years, totaling approximately 523 million yuan in cumulative losses over three years. After excluding non-recurring items, net losses were even larger at -150 million yuan, -209 million yuan, and -198 million yuan.
The company attributes these losses to the heavy asset investment required by its IDM model and intensive R&D efforts. As of the end of 2025, the original book value of fixed assets and construction in progress totaled approximately 1.095 billion yuan. Depreciation on fixed assets for each reporting period was 45.47 million yuan, 59.71 million yuan, and 83.68 million yuan respectively, with each year exceeding 15% of revenue. R&D expenses amounted to 66.83 million yuan, 88.18 million yuan, and 139 million yuan, accumulating to 294 million yuan over three years—representing 24.96% of cumulative revenue.
Dugen Core's comprehensive gross margins were 7.45%, 14.97%, and 19.72% across the reporting periods. By comparison, the average gross margins of industry peers Changguang Huaxin, Yuanjie Technology, and Ju Guang Technology were 41.13%, 28.43%, and 42.81% respectively. Even in 2025, when Dugen Core achieved its highest gross margin, it remained below half the peer average. The company attributes this gap to product mix differences, as it primarily sells high-power modules and systems, whereas comparable companies have a higher proportion of chip products.
Net operating cash flows were -108 million yuan, -170 million yuan, and -132 million yuan for the reporting periods, accumulating to approximately 410 million yuan in total outflows—with each period's outflow exceeding its corresponding net loss. Accounts receivable book value surged from 154 million yuan in 2023 to 274 million yuan in 2025, with the year-end 2025 figure representing 52.90% of revenue for that period.
Of particular concern is the bad debt risk. The prospectus reveals that customer Zhejiang Thermal Excitation Laser Technology Co., Ltd. has been provisioned at 100% for bad debt, with the 36.08 million yuan year-end 2025 book balance deemed "unlikely to be recovered." The company has initiated litigation against this customer for overdue payments.
As of the end of 2025, the company held 846 million yuan in cash on its books, with the debt-to-asset ratio improving from 52.31% in 2024 to 36.44%. On the surface, short-term solvency pressure appears manageable. The company plans to raise 2.804 billion yuan, allocating 801 million yuan for semiconductor optical chip and device construction projects, 789 million yuan for single-mode optoelectronic module capacity expansion, and 600 million yuan for working capital supplementation.
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