Due to concerns over the timing of its revenue recognition, Guangtai Vacuum's IPO application has been temporarily suspended. During the reporting period, the company had projects with acceptance periods exceeding eight years, and there were inconsistencies between some information disclosed by the company and its clients.
The IPO application of Shenyang Guangtai Vacuum Technology Co., Ltd. was deferred for review during a meeting of the Beijing Stock Exchange's Listing Committee on December 29. Both the review opinion and the primary issue raised during the meeting focused on a single concern: "the accuracy of revenue recognition and the sufficiency of its basis." During the meeting, committee members requested that Guangtai Vacuum provide further details on the main contractual terms and fulfillment status of projects where the period from delivery to acceptance exceeded 15 months during the reporting period. They also inquired whether there were instances of coordinating acceptance dates with clients or recognizing revenue across different accounting periods. Furthermore, the committee demanded that Guangtai Vacuum, by referencing its business contract and related supplementary agreements with Jiangsu Pacific Quartz Co., Ltd., explain the key terms and execution of that contract, the subsequent process for handling defaults, and the specifics of the settlement agreement. The company was also asked to clarify if similar situations occurred during the reporting period and to assess their impact. As early as the first round of inquiries, the Beijing Stock Exchange had already asked Guangtai Vacuum to explain the compliance of its revenue recognition practices and the authenticity of its goods-in-transit. At the end of each period in the reporting timeframe, Guangtai Vacuum's contract liabilities—entirely comprising advance payments from customers—were substantial, accounting for a significant and consistently high proportion of its current liabilities. Responses to the inquiries revealed that within Guangtai Vacuum's top ten contracts for both 2022 and 2023, there were instances where acceptance occurred more than a year after delivery. For example, in January 2022, Guangtai Vacuum signed a sales contract with client D2 for vacuum sintering furnaces and other equipment valued at 100.515 million yuan. Shipments occurred between June 2022 and August 2023, with partial acceptance finally taking place between October and December 2024—over a year after the initial deliveries. In another case, a contract signed with client L in August 2023 for 19.99 million yuan saw goods delivered in June 2024, yet acceptance for part of these goods did not occur until July 2025, again exceeding a one-year gap from delivery. According to information disclosed by Guangtai Vacuum in its inquiry responses, there were 25 projects during the reporting period with acceptance timelines longer than 15 months and values exceeding 1 million yuan each, amounting to a total value of 137.1541 million yuan. Guangtai Vacuum stated that the extended acceptance periods for these 25 projects were primarily due to factors such as clients'验收 habits, construction progress, production line build-out schedules, installation and debugging timelines, post-delivery technical modification requests from clients, and, in a few cases, product quality disputes. The company asserted these reasons were objective and commercially reasonable. Data disclosed by Guangtai Vacuum shows that revenue from four projects for client AY totaled 13.4328 million yuan, with acceptance periods ranging between 2,842 and 2,934 days. This indicates that the acceptance process for these four projects lasted over seven years, with the longest exceeding eight years. Furthermore, according to its 2025 interim report, as of the end of June 2025, Guangtai Vacuum had significant contract liabilities aged over one year amounting to 173.4996 million yuan, relating to eight clients. The reason given for non-repayment or non-settlement was that acceptance criteria had not yet been met. The Beijing Stock Exchange Listing Committee required Guangtai Vacuum to verify the status of projects where acceptance had not occurred over a year after delivery. It demanded a project-by-project listing of delivery dates, receipt dates, debugging periods, preliminary acceptance dates, and on-site service times, and to identify instances where clients had completed debugging or had already put the assets into use but had not promptly confirmed revenue. The company was also instructed to justify the sufficiency of its basis for recognizing revenue using the point-in-time method. Concurrently, the committee mandated that Guangtai Vacuum's sponsor and reporting accountants prudently evaluate the rationality of the company's revenue recognition policy, conduct verifications on the aforementioned matters, and issue clear opinions. There are contradictions between some information disclosed by Guangtai Vacuum and that disclosed by its clients. For instance, Jiangsu Pacific Quartz Co., Ltd. is a client of Guangtai Vacuum. According to Guangtai Vacuum's periodic reports, at the end of 2024 and June 2025, it had significant advance receipts from Pacific Quartz aged over one year, totaling 13.1279 million yuan, with the reason for non-settlement being that acceptance criteria were not met. However, Pacific Quartz's own periodic reports show that its total "Other non-current assets - Prepayments for projects and equipment" at the same dates were only 9.4015 million yuan and 3.9055 million yuan, respectively, figures significantly lower than the advance payment amount disclosed by Guangtai Vacuum. Does this suggest a discrepancy between Guangtai Vacuum and its client regarding the point of acceptance recognition? Additionally, responses from the first round of inquiries revealed that at the end of 2022, Guangtai Vacuum had goods-in-transit valued at 11.7768 million yuan related to Pacific Quartz. These goods had been shipped out of warehouse as early as 2017, stored on Pacific Quartz's premises, and were only fully accepted in September 2025. Guangtai Vacuum's initial inquiry response in September 2025 attributed the delayed acceptance to quality disputes between the parties. An updated response in December 2025 stated the primary reason was certain quality rectification issues encountered during the installation and debugging process. In another example, during the first round of inquiries, the Beijing Stock Exchange asked Guangtai Vacuum to explain the rationale behind commencing cooperation with clients corresponding to its top five contract liabilities in the same year or the year immediately following their establishment. Guangtai Vacuum replied that cooperation began shortly after the establishment of companies like Nantong Zhenghai Magnetic Material Co., Ltd. and Jinli Permanent Magnet (Baotou) Technology Co., Ltd. primarily because Guangtai Vacuum had a historical cooperative relationship with the group or parent company to which these entities belong. Specifically, regarding Jinli Permanent Magnet (Baotou), established on August 18, 2020, Guangtai Vacuum began cooperation on January 11, 2021, citing that it had first started working with the group, JL Mag Rare-Earth Co., Ltd., in March 2017. However, according to JL Mag Rare-Earth's IPO prospectus, at the end of 2016, it had a payable note of 1.59 million yuan to Guangtai Vacuum for equipment purchases. This information from JL Mag Rare-Earth indicates that cooperation existed as early as 2016, predating the initial cooperation date disclosed by Guangtai Vacuum. Beyond the issues mentioned above, a previous report highlighted additional concerns regarding Guangtai Vacuum's information disclosure.
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