Aikewei’s capacity utilization rate has sharply declined: multiple family members hold shares, and revenue from core products is volatile and under pressure.

Prior to this issuance, Liu Jianqing and his son Liu Siyang—the actual controllers of Aikewei—collectively held 75.70% of the company’s voting rights. After the issuance, their combined voting rights will decrease to 56.77%, yet they will retain strong control over the company. Liu Jianqing serves as the company’s chairman and general manager; Liu Siyang serves as a director and board secretary. Aikewei states that if the actual controllers abuse their controlling position in the future—improperly influencing the company’s development strategy, operational decisions, personnel arrangements, or profit distribution—it could adversely affect the company’s production and operations. Additionally, the prospectus discloses that Liu Jianqing’s younger brother Liu Jianrong indirectly holds 800,000 shares; another younger brother, Liu Jianjun, also indirectly holds 800,000 shares; Liu Jianqing’s brother-in-law Yao Zhongling indirectly holds 800,000 shares; and Liu Jianqing’s cousin Lin Jianzhong indirectly holds 400,000 shares. Meanwhile, Li Luzhen—the company’s vice general manager—and his younger brother Li Lugang, who serves as the mechanical supervisor, jointly hold 850,000 shares indirectly. Renowned economist Song Qinghui told *Gangwan Business Observer*: “Under highly concentrated equity structures, two main risks may arise. First, opinions of minority shareholders may be overlooked, undermining decision-making diversity and innovation. Second, the absence of effective checks and balances may allow major shareholders’ personal biases to lead to poor decisions, harming the company. Third, internal financial controls may weaken, jeopardizing overall financial stability and operational development. When controlling shareholders simultaneously serve in management roles, drawbacks abound: managerial initiative may be suppressed, and controlling shareholders may abuse their authority to the detriment of other shareholders or the company itself.” Moreover, during the reporting period, Aikewei exhibited non-compliant financial internal controls. In 2020 and 2021, the company engaged in loan-facilitation transactions via external customers, amounting to RMB 7 million and RMB 8.968 million, respectively. Aikewei states that all loans involved in these loan-facilitation transactions were fully repaid by the end of July 2021. The company has since strengthened its internal management systems to prevent recurrence. Regarding these loan-facilitation activities, the relevant lending banks have issued confirmation letters affirming that Aikewei’s loans incurred no overdue repayments or other breaches; that there are no disputes—or potential disputes—regarding the specific use of the loan proceeds; and that the banks will not pursue breach-of-contract or tort-based compensation claims against Aikewei or any other related parties. Aikewei has also obtained a statement from the Huai’an Central Branch of the People’s Bank of China confirming that the company faced no administrative penalties for violations of laws or regulations during the reporting period. During the reporting period, Aikewei experienced instances where the payment party for sales proceeds differed from the contracting party or the actual trading counterparty. In 2021 and 2022, third-party collections amounted to RMB 8.831 million and RMB 5.3558 million, representing 1.45% and 0.82% of annual operating revenue, respectively. Since December 2022, no further third-party collections have occurred. Aikewei states that, during the reporting period, third-party payments originated from the actual controllers of customers; all such third-party collections were based on genuine transaction backgrounds; related revenues were fully recorded in accounts; and all applicable taxes were fully paid.

Aikewei’s IPO on the Beijing Stock Exchange: unstable performance, large-scale dividends, frequent related-party transactions, and financial issues.

On December 26, 2024, Jiangsu Aikewei Technology Co., Ltd. (hereinafter “Aikewei”) submitted its prospectus to the Beijing Stock Exchange (BSE), with Ping An Securities serving as the sponsor institution. According to the prospectus, Aikewei specializes in the research, development, production, and sale of oxime-series fine chemical products. Its principal products include oxime-type silanes (e.g., methyltris(butylketoximo)silane and vinyltris(butylketoximo)silane), hydroxylamine salts (e.g., ammonium sulfate hydroxylamine and ammonium chloride hydroxylamine), and basic oxime compounds (e.g., acetaldoxime and acetone oxime). In terms of application fields, its oxime-type silane products are primarily used in manufacturing organic silicone sealants and adhesives, ultimately finding broad application across solar photovoltaics, new-energy lithium batteries, electronics & electrical appliances, and construction materials. Hydroxylamine salts and basic oxime compound series serve as critical chemical raw materials and intermediates, widely applied in emerging materials, daily chemicals, crop protection, and pharmaceuticals. Source: Aikewei Prospectus In this bid for listing on the BSE, Aikewei plans to raise substantial funds to significantly expand production capacity—including upgrading existing product lines and extending its oxime-series fine chemical product chain. However, as of the end of the first half of 2024, Aikewei’s key product capacity utilization rates remained low: for hydrochloride hydroxylamine and sulfate hydroxylamine, utilization stood at 47.41% and 53.69%, respectively. Given this, questions arise regarding the necessity of raising capital to expand capacity. *Wealth Weekly – Caishi Hui*’s research reveals that the prospectus also exposes numerous concerning issues relating to Aikewei’s financial performance and internal controls. Declining Product Selling Prices The prospectus discloses that during the reporting period—i.e., 2021 through 2023 and the first half of 2024—Aikewei achieved operating revenues of RMB 611 million, RMB 656 million, RMB 684 million, and RMB 426 million, respectively, showing an overall upward trend. Corresponding net profits were RMB 164 million, RMB 131 million, RMB 141 million, and RMB 122 million. Although revenue growth persists, the pace notably decelerated between 2022 and 2023: year-on-year revenue growth rates were 7.36% and 4.27%, respectively. Net profit growth was negative in 2022, while in 2023 it rose only 7.39% year-on-year. Examining its revenue composition more closely reveals limited growth potential. Among Aikewei’s three core businesses, oxime-type silanes contributed RMB 339 million, RMB 281 million, RMB 273 million, and RMB 130 million in revenue during the reporting period—accounting for 56.23%, 43.04%, 39.99%, and 30.62% of total revenue, respectively. Basic oxime compounds generated RMB 67 million, RMB 135 million, RMB 193 million, and RMB 175 million—representing 11.23%, 20.68%, 28.34%, and 41.13% of total revenue, respectively. In other words, Aikewei’s former flagship product line—oxime-type silanes—has seen both declining revenue amounts and shrinking share of total revenue, dragging down overall performance; meanwhile, basic oxime compounds have emerged as the new engine of revenue growth. The company explains that the decline in oxime-type silane revenue stems mainly from: “a sharp price surge in 2021 triggered by industry-wide safety accidents and subsequent production halts among peers; as peer companies resumed production, intensified competition drove market prices downward.” Conversely, sustained growth in basic oxime compound revenue is attributed to: “continuous increases in acetaldoxime output and sales volume during the reporting period; concurrently, technical upgrades and output reductions at peer companies’ acetaldoxime facilities drastically curtailed market supply, leading to a significant rise in Aikewei’s latest-period acetaldoxime sales volume and pricing—and thus, a marked revenue increase.”

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