In-Depth Analysis Report on the Quality of Zhixin Co., Ltd.'s IPO Information Disclosure

In response to your request, I will prepare a professional analysis report on the IPO information disclosure quality of Zhixin Co., Ltd. Based on publicly available information retrieved, I will conduct a systematic analysis from dimensions such as supplier affiliation, transaction data discrepancies, and information disclosure anomalies.

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Chongqing Zhixin Industrial Co., Ltd. (hereinafter referred to as “Zhixin Co., Ltd.”) was established in 1995, mainly engaging in the development, processing, production and sales of automotive stamping and welding parts and related molds. The company was listed on the Shanghai Stock Exchange main board on January 15, 2026, with the stock code 603352. Its customers cover well-known automakers such as Changan Automobile, Geely Automobile, BYD, NIO, Li Auto, etc.

From surface data, Zhixin Co., Ltd. has seen rapid performance growth in recent years: from 2022 to 2024, its operating revenue increased from RMB 2.091 billion to RMB 3.088 billion, and its non-recurring net profit attributable to parent company shareholders rose from RMB 52.25 million to RMB 185 million [1]. However, in-depth analysis reveals multiple information disclosure anomalies in the company’s IPO application materials, triggering widespread market doubts about the authenticity and compliance of its financials.

According to the prospectus, Chongqing Siye Auto Parts Co., Ltd. (hereinafter referred to as “Chongqing Siye”) is one of Zhixin Co., Ltd.'s top five suppliers. Procurement data shows that the procurement amount was RMB 67.6618 million in 2022, RMB 84.6625 million in 2023, and RMB 86.7355 million in 2024, showing a year-on-year increasing trend [2].

However, industrial and commercial information inquiries show that the shareholders and key personnel of Chongqing Siye include the same individuals as Zhixin Co., Ltd.'s actual controllers——

. According to public industrial and commercial registration information, the historical shareholder and responsible person change records of Chongqing Siye Auto Parts Co., Ltd. include key personnel such as Chen Zhiyu and Jing Bing, which means the company may have an affiliation with Zhixin Co., Ltd. [3].

According to data from Lixinger, Chongqing Siye was one of Zhixin Co., Ltd.'s top five suppliers in each year of the reporting period:

Year	Procurement Amount	Percentage of Total Procurement
2022	RMB 84.6625 million	4.17%
2023	RMB 86.7355 million	3.78%
2024	RMB 49.8969 million	3.79%

If Chongqing Siye is indeed an affiliated party, intermediary institutions need to conduct more in-depth due diligence on whether the disclosure of affiliated procurement in the prospectus is complete and accurate.

Notably, Changan Ford appeared on both Zhixin Co., Ltd.'s top five customer list and top five supplier list during the reporting period. From 2022 to 2024, the procurement amount from Changan Ford and its affiliated companies was RMB 74.2803 million, RMB 191 million (affiliated party caliber in 2022), and undisclosed (2024) respectively [4]. This dual identity of “being both a customer and a supplier” requires Zhixin Co., Ltd. to provide more detailed explanations of transaction backgrounds and demonstrations of pricing fairness.

This is the most serious part of Zhixin Co., Ltd.'s information disclosure issues. There are

between the parent company’s annual report data of Zhixin Co., Ltd. disclosed on the National Enterprise Credit Information Publicity System and the consolidated statement data in the prospectus:

Indicator	National Enterprise Credit Information Publicity System	Prospectus	Discrepancy Amount
2023 Operating Revenue	RMB 1.0513 billion	RMB 2.56352 billion	RMB 1.51222 billion
2023 Net Profit	RMB 53.7 million	RMB 131.8456 million	RMB 78.13 million
2024 Operating Revenue	RMB 1.38213 billion	RMB 3.08825 billion	RMB 1.70573 billion
2024 Net Profit	RMB 83.63 million	RMB 203.96 million	RMB 120.33 million

: The data from the National Enterprise Credit Information Publicity System represents the parent company’s individual statement data, while the prospectus presents consolidated statement data. The discrepancy between the two should be explained by the contributions of subsidiaries. However, even if we add the 2024 data of 14 subsidiaries (total assets of RMB 3.716 billion, net assets of RMB 1.196 billion, operating revenue of RMB 3.933 billion, net profit of RMB 151 million) to the parent company’s data, the aggregated data still has an operating revenue gap of approximately RMB 2.227 billion compared with the consolidated statement data [5].

More controversially, a newsletter released on December 30, 2024, on the website of the Alumni Affairs and Social Cooperation Office of Wuhan University of Science and Technology shows that in the promotional video played by Zhixin Co., Ltd. at the Chongqing Alumni Association Annual Meeting, the company disclosed that it “has 7 workshops, more than 2,000 employees, and an annual output value of over RMB 1.8 billion” [6]. This data significantly differs from the RMB 3.088 billion operating revenue in the 2024 prospectus. Although there may be differences in statistical calibers, the company’s statements on operating data in major public activities should be consistent with the application materials.

Facing such huge data discrepancies, Zhixin Co., Ltd. has yet to provide a convincing explanation. Possible explanatory paths include:

• Differences in statistical calibers (such as whether tax is included, whether internal transactions are excluded, etc.)
• Differences in the identification of subsidiary scopes
• Differences in the choice of accounting policies

In any case, as a candidate for a listed company, Zhixin Co., Ltd. has the obligation to ensure the accuracy, consistency and verifiability of information disclosure.

The prospectus shows that when the company’s predecessor, Zhixin Co., Ltd. (limited liability), was established in 1995, there were multiple capital contribution defects:

• Abnormal capital contribution with village committee assets
  : The net value of the real estate and land used by Longta Village Committee for capital contribution was assessed at RMB 196,000, but the actual valuation was only RMB 170,000, suspected of “overvaluation but underinvestment” [7].
• Unassessed equipment capital contribution
  : When Chen Zhiyu and Jing Bing increased capital with equipment, molds and inventory in December 2000, the capital contribution value was confirmed without asset evaluation.
• Conflict between General Manager Feng Yu’s state-owned enterprise position and external investment
  : When Feng Yu invested in Zhixin Co., Ltd. (limited liability) in December 1994, he served as Deputy General Manager and General Manager of Chongqing Railway Electrification Engineering Company (a state-owned enterprise), suspected of the violation of “holding a position in a state-owned enterprise while investing in an external enterprise” [8].

The resume of Yang Shengke, Deputy General Manager of Zhixin Co., Ltd. shows:

• October 2019 to April 2020: Served as President of Yunnan Haolai Construction Co., Ltd.
• May 2020 to November 2020: Served as General Manager of Ningbo Jiwen Metal Technology Co., Ltd.

However, “Yunnan Haolai Construction Co., Ltd.” cannot be found in the National Enterprise Credit Information Publicity System, and Yang Shengke is not among the historical key personnel of “Yunnan Haolai Construction Engineering Co., Ltd.” with a similar name; Yang Shengke is also not among the historical key personnel of Ningbo Jiwen Metal Technology Co., Ltd. [9]. This inevitably raises doubts about the authenticity of the disclosed senior executives’ resumes.

Chen Zhiyu and Jing Bing, a couple, control a total of 83.75% of the company’s voting rights, but their daughters Chen Xiaohan and Chen Jingyi are not included in the scope of joint actual controllers. Chen Xiaohan currently serves as the company’s director and secretary of the board of directors, and once worked as a manager at the business department of Shenwan Hongyuan, the sponsor institution for this IPO [10]. This complex interpersonal network has triggered market concerns about the independence of the sponsor institution.

As of the end of June 2025, the book balance of accounts receivable of Zhixin Co., Ltd. reached as high as RMB 1.135 billion, accounting for 48% of current assets, a significant increase from RMB 863 million at the end of 2022. More importantly, the company’s accounts receivable turnover rate has been consistently lower than the industry average:

Year	Zhixin Co., Ltd.'s Turnover Rate	Average of Peer Companies in the Industry
2022	2.83 times	3.63 times
2023	2.71 times	3.42 times
2024	2.82 times	3.27 times

The company explains that customers of new energy vehicle models usually use bank transfers for settlement, leading to a high proportion of accounts receivable, but this may also mean that the company is in a weak position in customer pricing negotiations [11].

During the reporting period, Zhixin Co., Ltd. encountered multiple customer operational crises:

• Nezha Auto
  : Entered bankruptcy reorganization proceedings in 2024, and the company has fully accrued bad debts for its RMB 12.9453 million overdue accounts receivable [12].
• BAIC Yinxiang Automobile
  : Fully accrued bad debts for RMB 2.8 million overdue accounts receivable.
• Zhejiang Shiyuan Auto Parts
  : Fully accrued bad debts for RMB 7.31 million overdue accounts receivable.

The consecutive occurrence of operational risks among multiple customers exposes the company’s deficiencies in customer risk assessment.

Zhixin Co., Ltd. plans to raise RMB 1.329 billion in this IPO, mainly for the “Stamping and Welding Production Line Capacity Expansion and Technological Transformation Project” at three bases. However, the company’s capacity utilization rate declined across the board in the first half of 2025:

Equipment Type	2024 Utilization Rate	H1 2025 Utilization Rate
Cold Stamping Equipment	102.61%	80.90%
Hot Forming Equipment	99.33%	91.68%
Welding Equipment	97.63%	79.39%

Against the backdrop of declining capacity utilization, the company still raises funds on a large scale for capacity expansion, and there is great uncertainty about whether the new capacity can be smoothly absorbed.

Judging from the inquiry letter issued by the Shanghai Stock Exchange, the regulatory authorities focus on the following issues:

1. Completeness of affiliated procurement and fairness of pricing
2. Due diligence on the affiliation of the top five suppliers
3. Rationality of changes in gross profit margin
4. Matching of performance growth with industry trends
5. Identification of actual controllers and arrangements for concerted actors

The sponsor institution, Shenwan Hongyuan Securities Underwriting & Sponsoring Co., Ltd., the audit institution, Rongcheng Certified Public Accountants, and the law firm, Grandall Law Firm (Shanghai), have all issued due diligence opinions, confirming that the company meets the issuance conditions [13]. However, in the face of so many information disclosure anomalies, the market still has doubts about the depth and quality of the due diligence conducted by the intermediary institutions.

Based on the above analysis, Zhixin Co., Ltd.'s IPO information disclosure has the following main issues:

1. Concealed supplier affiliations
   : Chongqing Siye Auto Parts Co., Ltd. has a potential affiliation with the actual controllers, but this was not clearly disclosed in the prospectus. Intermediary institutions need to further verify the accuracy of the affiliation identification.

2. Huge transaction data discrepancies
   : There is a RMB 1.5-1.7 billion revenue discrepancy between the data from the National Enterprise Credit Information Publicity System and the prospectus data. The company has yet to provide a reasonable explanation, which seriously affects the verifiability of information.

3. Historical capital contribution defects
   : Issues such as overvaluation but underinvestment of village committee assets, unassessed equipment capital contributions, and the general manager’s external investment during his tenure in a state-owned enterprise reflect the lack of standardization in the company’s early governance.

4. Doubts about senior executives’ resumes
   : The resume of Deputy General Manager Yang Shengke is inconsistent with industrial and commercial registration information, suspected of resume fraud.

5. Accumulated financial risks
   : The high level of accounts receivable, frequent customer defaults, and the conflict between declining capacity utilization and fund-raising for capacity expansion all pose challenges to the company’s future operations.

: Zhixin Co., Ltd. was listed on January 15, 2026, with stock code 603352 and an issue price of RMB 53.43. In view of the above information disclosure issues, investors should pay close attention to the company’s subsequent information disclosure and make prudent decisions.

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[1] Caijing Reference - Multiple Anomalies in Zhixin Co., Ltd.'s Information Disclosure Data, Founding Shareholder Invested While Holding a Position in a State-Owned Enterprise

[2] Lixinger - Supplier Data of Zhixin Co., Ltd.

[3] Caijing Reference - Equity Information of Chongqing Siye Auto Parts Co., Ltd.

[4] Eastmoney - Announcements of Zhixin Co., Ltd.

[5] Zhonghong Wang - Zhixin Co., Ltd. IPO: Operating Revenue and Performance Conflict with Public Data, Profits Eroded by Interest but Solvency Remains

[6] Alumni Affairs and Social Cooperation Office of Wuhan University of Science and Technology - Newsletter of 2024 Annual Meeting of Chongqing Alumni Association

[7] Caijing Reference - Analysis of Founding Shareholders’ Capital Contribution Issues

[8] Caijing Reference - Conflict Between Feng Yu’s Position in a State-Owned Enterprise and External Investment

[9] National Enterprise Credit Information Publicity System - Verification of Yang Shengke’s Resume

[10] China Financial Futures Exchange - Supplementary Legal Opinion of Zhixin Co., Ltd.

[11] Zhonghong Wang - Analysis of Accounts Receivable Risks

[12] Caijing Reference - Summary of Customer Default Incidents

[13] Shanghai Stock Exchange - Issuance Sponsor Letter of Zhixin Co., Ltd.