On December 19, 2025, Chongqing Yulong Photoelectric Technology Co., Ltd. entered the inquiry phase for its IPO application on the Shenzhen Stock Exchange's ChiNext board. The company aims to raise 1 billion yuan, with CITIC Securities serving as the sponsor, Zhong Lun Law Firm as the legal advisor, and Tianjian Accounting Firm providing audit services.
The company, based in Chongqing, specializes in the research, production, and sales of smart control cards and precision functional components for new semiconductor display panels. It aims to become a leading enterprise in China's smart control sector. Its primary products include specialized smart control cards for LCD and OLED display panels, along with PCBA manufacturing services. The company also supplies precision functional components tailored for the semiconductor display panel industry, with end applications spanning consumer electronics such as tablets, laptops, monitors, large-sized TVs, smartphones, and wearable devices.
From 2022 to the first half of 2025, Yulong Technology reported revenues of 749 million yuan, 698 million yuan, 1.095 billion yuan, and 597 million yuan, respectively. Net profits for the same periods were 66.84 million yuan, 75.72 million yuan, 121 million yuan, and 70.33 million yuan.
As of the prospectus signing date, Wang Yalong directly holds a 42.30% stake in the company, making him the controlling shareholder. Together with his spouse Li Hongyan, they control 74.16% of the company's equity, serving as the actual controllers. The controlling shareholders and actual controllers remained unchanged during the reporting period.
In the first round of inquiries, regulators raised questions regarding revenue fluctuations and key clients. The company's main business revenue was 747.65 million yuan, 694.19 million yuan, 1.093 billion yuan, and 596.80 million yuan during the reporting period. Influenced by fluctuations in consumer electronics demand and the semiconductor display panel industry's cyclicality, revenue declined in 2023 but rebounded in 2024 due to increased demand from downstream panel manufacturers.
The company's primary products are smart control cards and precision functional components for displays. Revenue trends for these two product categories diverged in 2023, with precision functional components maintaining growth despite an overall revenue decline. The industry is transitioning from LCD to newer technologies like OLED, which have achieved widespread commercial use. LCD panel market growth has slowed, yet Yulong's revenue from LCD-related products exceeds 500 million yuan, accounting for over 50% of total revenue.
Customer concentration is high, with the top two clients, BOE and Hehui Photoelectric, contributing over 80% of sales. The top five clients collectively represent more than 90% of revenue. New major clients added during the reporting period include Tianma and Guangzhou Guoxian.
Overseas revenue, generated through deep processing trade models, amounted to 53.40 million yuan, 48.78 million yuan, 25.98 million yuan, and 8.88 million yuan across the reporting periods. Revenue from other products grew rapidly, reaching 2.66 million yuan, 13.90 million yuan, 22.28 million yuan, and 14.84 million yuan.
Authorities requested detailed disclosures on revenue changes by product type, alignment with client performance and industry trends, terminal application breakdowns, impacts of emerging technologies like OLED and MiniLED on LCD products, collaborations with major and new clients, specifics of other product revenues, and details of deep processing trade operations.
Questions were also raised regarding the company's relationship with LiteGate. Aside from Yulong and its subsidiaries, the controlling shareholders and their relatives directly or indirectly control 56 enterprises, 19 of which, including LiteGate, are engaged in production activities. LiteGate primarily produces OLED terminal materials and intermediates. Yulong asserts that LiteGate's business, products, and processes differ significantly from its own, with no substitutability, competition, or conflict of interest.
Yulong maintains that it operates independent sales, procurement, financial, production, and human resources systems without overlapping personnel or shared resources with affiliates, and denies any同业竞争. Regulators have asked for detailed information on LiteGate's products, an analysis of potential conflicts, a review of the controlled enterprises' operations, evidence of Yulong's independence, and an assessment of whether the relationship with LiteGate constitutes同业竞争 under regulatory guidelines, potentially impacting the IPO.
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