Another upstream equipment manufacturer in the biomanufacturing sector is approaching an IPO.
On May 28, the Shenzhen Stock Exchange website indicated that Oushangyuan Intelligent Equipment Co., Ltd.'s application for an initial public offering on the ChiNext board has been accepted. The company intends to raise approximately 1.251 billion yuan to fund projects including the construction of a core biomanufacturing equipment production base, the renovation and intelligent upgrade of a separation and purification system manufacturing center, and the establishment of a research and development center. The lead underwriter is Citic Securities Company Limited.
Compared to typical equipment manufacturers, Oushangyuan's business narrative is more closely aligned with the current core aspects of synthetic biology industrialization. The company primarily focuses on the research, development, production, and sales of separation and purification equipment and industrial automation control systems. Its products serve downstream industries such as food and food additives, biopharmaceuticals, plant extracts, and new energy.
According to its prospectus, the company's operating revenues were 360 million yuan, 399 million yuan, and 580 million yuan from 2023 to 2025, respectively. Net profits for the same period were 107 million yuan, 118 million yuan, and 151 million yuan. Both revenue and profit showed growth over these three years, with a notable acceleration in revenue growth in 2025.
Allulose is a distinctive business segment for Oushangyuan. The prospectus reveals that from 2023 to 2025, the company held a 50.55% market share in separation and purification services related to allulose in China, ranking first domestically. As of the end of 2025, the company's total order backlog in the allulose field exceeded 350 million yuan.
In recent years, allulose has been regarded as a significant direction within the functional sugar and sugar substitute industry. For Oushangyuan, this sector does not represent a consumer brand story but rather generates equipment orders from industrial capacity expansion. This means that as more downstream companies invest in allulose, functional sugars, and biomanufacturing capacity, the company, as an upstream equipment supplier, stands to benefit from the expansion.
However, the highlights of this company's IPO extend beyond just riding an industry trend.
The prospectus shows that Zhang Tianti is the controlling shareholder and actual controller of Oushangyuan, also serving as Chairman and General Manager. He indirectly holds a 59.38% stake in the company through Tianjin Shinor and Tianjin Chengzhu, and actually controls 83.03% of the company's voting rights. The company also notes in its prospectus that the controlling shareholder may exert significant influence over business decisions, personnel arrangements, profit distribution, and other matters. If such control is exercised improperly, it could harm the interests of the company and its minority shareholders.
Customer concentration is another notable point. During the reporting period, revenue from the top five customers amounted to 233 million yuan, 290 million yuan, and 379 million yuan, accounting for 64.67%, 72.74%, and 65.34% of total operating revenue, respectively. The company's clients include COFCO Group, Beijing Capital Agribusiness Group, Shandong Bailong Chuangyuan Bio-Tech Co.,Ltd., and Anhui Huaheng Biotechnology Co.,Ltd.. While these major clients provide revenue stability and industry validation, it also means the company's performance is closely tied to the expansion pace, project acceptance schedules, and payment cycles of these key customers.
Characteristics of this project-based equipment business are also reflected in revenue recognition and accounts receivable. The prospectus indicates that the company's revenue exhibits some seasonality, as major clients are often large enterprises, listed companies, or state-owned enterprises that typically concentrate project acceptance, budget approvals, and payment arrangements in the second half of the year. At the end of 2025, the book value of accounts receivable was 168 million yuan, representing 28.99% of that year's operating revenue, a significant increase compared to 2023 and 2024.
Concurrently, the company's credit impairment losses have also risen. During the reporting periods, credit impairment losses were 546,100 yuan, 3.4822 million yuan, and 12.8607 million yuan, primarily consisting of bad debt losses from accounts receivable. For equipment companies, order growth does not fully equate to improved cash flow; project acceptance, collection cycles, and customer payment capabilities continue to impact financial quality.
Overall, Oushangyuan's push for a ChiNext listing coincides with a period of accelerated biomanufacturing industrialization. The company has revenue growth, profits exceeding 100 million yuan, market share in specific areas like allulose, and backing from a roster of major clients. On the other hand, the company faces highly concentrated voting power with its controlling shareholder, over 60% of revenue consistently coming from the top five customers, and increasing pressure from accounts receivable and impairment losses.
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