On April 17, Dongguan Youbang Materials Technology Co., Ltd. (referred to as "Youbang Technology") completed its response to the first round of inquiry feedback, marking the furthest progress the company has made in its pursuit of a capital market listing.
Youbang Technology's initial IPO attempt began in 2020, when it filed for listing guidance in November of that year. However, it withdrew its application a year later due to unsatisfactory performance, resulting in the first failure of its listing plan. In November 2022, the company launched its second attempt, formally applying for listing on the ChiNext board in September 2023, only to withdraw abruptly three months later.
On December 27, 2025, Youbang Technology initiated its third IPO effort. The process from entering the inquiry stage to completing the first round of responses took three months, indicating a relatively slow review pace, which may reflect regulatory caution regarding the company's business quality and historical issues.
Revenue growth has slowed significantly, and gross profit margins have declined consecutively.
Established in January 2016, Youbang Technology specializes in electronic assembly materials and related automation equipment. Its main business segments include electronic adhesives, electronic soldering materials, wet chemicals, and automation equipment. Among these, electronic soldering materials and adhesives form the core of the company's performance, accounting for 50.82% and 23.13% of its 2025 revenue, respectively, and contributing 35.76% and 31.50% of its gross profit.
From 2021 to 2025, the company's revenues were 5.89 billion yuan, 8.54 billion yuan, 8.99 billion yuan, 10.25 billion yuan, and 11.36 billion yuan, respectively. The corresponding year-on-year growth rates were 40.43%, 45.06%, 5.24%, 14.00%, and 10.84%, showing a sharp decline from a peak of 40% to around 10%, indicating a clear growth bottleneck.
Simultaneously, the company's gross profit margin has also decreased. Over the past three years, its comprehensive gross profit margins were 31.87%, 27.66%, and 27.33%, representing a decline of 4.54 percentage points over two years. Specifically, the gross profit margin for electronic soldering materials dropped from 21.11% to 19.23%, while that for electronic adhesives fell from 42.41% to 37.22%, reflecting pressure on the profitability of its core products.
Heavy reliance on a major customer and Foxconn's dual role as both customer and shareholder raise fairness concerns.
Furthermore, Youbang Technology exhibits a high degree of dependence on a single customer. Between 2023 and 2025, sales to its largest customer, Foxconn, accounted for 34.87%, 31.78%, and 26.55% of its total revenue, respectively. Although this proportion has declined in recent years, it remains high. In comparison, sales to its second-largest customer over the same period were only 8.39%, 6.47%, and 6.65%, indicating that the company's business performance is heavily reliant on Foxconn's procurement arrangements.
Notably, Foxconn is also a shareholder of Youbang Technology. According to the prospectus, Foxconn holds a 3.44% stake in the company through its investment platform, Jinjihu Investment, making it the eighth-largest shareholder.
Under these circumstances, whether the transaction pricing between Youbang Technology and Foxconn is fair and whether there is any improper transfer of benefits are inevitably key concerns for both the market and regulators. In the inquiry letter, regulators requested that Youbang Technology explain the changes in sales revenue, unit prices, sales volume, and supply share to the Foxconn group before and after Jinjihu's investment in Dongguan Younuo, as well as the reasons for the significant increase in sales to the Foxconn group after Jinjihu became a shareholder.
Additionally, the company has faced multiple administrative penalties in recent years, covering areas such as environmental protection, workplace safety, customs, taxation, and transportation. These incidents highlight weaknesses in the company's compliance and internal control management. Whether Youbang Technology can adequately explain and rectify these issues will likely determine the success of its current IPO attempt.
Note: This article incorporates AI-generated content. The views expressed herein do not constitute investment advice and are for reference only. Market risks exist, and investments should be made cautiously.
Comments