Green Bio, a fragrance product manufacturer, has once again initiated its bid for a ChiNext IPO, marking its third attempt in five years.
This time, the company has expanded its fundraising plan, adjusting project details and increasing the total capital raised to CNY 690 million. While financial data shows steady growth in revenue and net profit from 2022 to the first half of 2025, the prospectus reveals structural risks such as heavy reliance on overseas sales, profit erosion from fixed-asset depreciation, and relatively low capacity utilization.
**01. Past IPO Failures and Doubled Fundraising Target** Green Bio first attempted an IPO in December 2020, but withdrew its application just two months later after failing an on-site inspection. Issues included incomplete disclosures, uncertain profitability, and compliance lapses, such as unreported environmental penalties for a subsidiary.
Switching underwriters to Changjiang Securities, the company reapplied in June 2023 but withdrew again in September 2024 after two rounds of inquiries. The Shenzhen Stock Exchange later issued a regulatory warning over irregularities in R&D cost accounting and inconsistent disclosures.
The latest prospectus shows significant adjustments in fundraising projects: - The "6,800-ton premium fragrance project" is revised to a "6,300-ton premium fragrance production project." - The "smart factory construction project" is rebranded as a "factory facility intelligent upgrade project." - A new "R&D innovation upgrade project" is added.
Notably, the fundraising target has surged 84% to CNY 690 million, despite reduced planned capacity for premium fragrances.
**02. Profit Squeezed by Depreciation and Forex Losses** Green Bio produces three main product lines: turpentine, cedarwood oil, and fully synthetic fragrances. The new project aims to expand production of sandalwood and damascone series by 2,450 tons.
However, capacity utilization remains low, averaging around 70% at its main facility, partly due to bottlenecks in synthetic production. Meanwhile, rising depreciation costs—reaching CNY 56.05 million in 2024—continue to pressure profits.
With over 80% of revenue from exports, forex losses have significantly impacted earnings, totaling CNY 11.01 million in 2024 alone (13.28% of total profit in 2022). The company warns of potential performance declines if overseas markets weaken.
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